By Adedapo Adesanya
The federal government has introduced a flexible payment plan for the conversion of vehicle engines to run on Compressed Natural Gas (CNG) as part of efforts to get Nigerians to embrace the fuel as an alternative energy source across the country.
According to a statement by the National Orientation Agency of Nigeria (NOA) on Tuesday, the flexible payment plan will make it easier to switch to CNG which it said, is now more accessible than ever.
“With flexible payment plans tailored to fit your budget, transitioning from petrol to CNG has never been smoother or more affordable.
“These payment options allow you to convert your vehicle now and pay later with affordable monthly instalments at competitive rates.
“Simple Application Process With an easy online application and quick approval process, you’ll receive support every step of the way to ensure a hassle-free experience.
“Visit: https://gocng.ng to get started.”
It then stated the benefits of CNG on vehicle engines as cost savings, environmental impact, enhanced engine life, and safety and reliability-proven technology with a track record of safety and dependable performance.
Business Post had reported that the FG announced a plan to boost CNG infrastructure and cut transportation fares by over 40 per cent.
According to the chairman of the Presidential Compressed Natural Gas Initiative, Mr Michael Oluwagbemi, this was part of the government’s commitment to affordable transportation amidst rising fuel prices.
“We are working hard to bring transportation prices down, especially during these challenging times. Mr President has introduced a great alternative to the petrol problem—compressed natural gas,” he stated last month.
He added that under the new plan, fares for eight-passenger vehicles would be reduced from N12,000 to N7,000, while fares for four-passenger vehicles would drop from N13,000 to N8,000 for trips from Abuja to Ajaokuta train station.
Recall that CNG is part of the 63 items recently exempted from Value-Added Tax (VAT) by the federal government.
According to Mr Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, he said the items are contained in an official gazette for the Value Added Tax (Modification) Order, 2024.
The introduction of concessions was aimed at revitalising the oil and gas industry to ensure a boost in Nigeria’s upstream and downstream sectors.
Aduragbemi Omiyale 
Modupe Gbadeyanka