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CNG Buses: FG Launches Pilot Phase, Presents Converted Buses To State House




The Federal Government on Friday launched a pilot phase of the Compressed Natural Gas (CNG) buses, announcing waiver of Value Added Tax (VAT) on CNG purchased vehicles.

Engineer Micheal Oluwagbemi, the Chief Executive Officer (CEO) of the Presidential CNG Initiative (P-CNGi) disclosed, in a statement to newsmen, that the initiative on Friday handed over converted buses to State House in Abuja.

The Presidential Compressed Natural Gas (CNG) Initiative Steering Committee has announced that seven CNG conversion centres have been established in the country.

"Today, the Bola Ahmed Tinubu administration marked a significant milestone with the handover of converted buses to the State House, symbolising Nigeria's unwavering commitment to a cleaner, more sustainable, and economically sound future.

"In a momentous event, these Compressed Natural Gas (CNG) buses were delivered with a clear message: Nigeria is at the forefront of a global energy revolution.

"The conversion of these buses to CNG is not just a technical achievement but a declaration of intent to embrace cleaner and more economical energy solutions.

"This initiative reflects the administration's resolve to harmonize fiscal prudence and environmental stewardship.

"Nigeria is currently home to seven conversion centers, and the government is actively working to establish more of them across the country," Oluwagbemi said.

According to him, this will facilitate vehicle conversion and generates employment opportunities.

He said that the development showed the administration's commitment to environmental sustainability and economic growth.

He added: "In the next few weeks, starting from tomorrow in Lagos, the PCNGI will establish the roll out of more conversion centers to enable 55,000 conversions in the next 6 months under the palliative program.

"In addition to this, over 11,500 CNG fueled vehicles will be rolled out by partnership with private sector, cooperative, state and union operated mass transit operators in the same period.

"One remarkable development announced during the handover ceremony is the waiver of Value Added Tax (VAT) on CNG purchases."

Oluwagbemi said that this policy change demonstrated the government's dedication to making cleaner energy more accessible and affordable for all Nigerian citizens.

"This is to encourage more investments to make CNG more widely available from wellhead to nozzle," he added.

Speaking, the Chairman of the Presidential CNG Initiative , Mr Zacch Adedeji, while handing over CNG buses to the State House, Permanent Secretary, Mr Olusesan Adebiyi, expressed gratitude to all stakeholders.

Adedeji who is the acting Chairman, Federal Inland Revenue Service (FIRS), was represented by Mr Farouk Ahmed, Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority.

He highlighted the dedication, vision, and unwavering support that brought the nation to this juncture.

“the CNG buses passed on to the distinguished representatives of the State House represent a new beginning and a journey toward a future where Nigeria powers tomorrow, today," Adedeji said.

He said that handover ceremony, attended by distinguished guests, marked the dawn of an extraordinary journey.

The Chairman added, "challenges will undoubtedly arise, but the determination, innovation, and collaboration of the Nigerian people will light the path ahead, contributing to a cleaner, greener, and more prosperous tomorrow.

"This event is more than a vehicle handover; it symbolises Nigeria's commitment to an Energy Revolution: Powering Tomorrow, Today," Adedeji said.

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