Connect with us

Auto

Private Sector Pumps $50m into Presidential CNG Initiative

Published

on

presidential CNG initiative

By Adedapo Adesanya

Nigeria’s private sector has injected more than $50 million in actual investments in refuelling stations, conversion centres, and mother stations in the Presidential Compressed Natural Gas Initiative (PCNGI), which is set for initial rollout to the public by the end of May.

The Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, disclosed this in a statement on Sunday in Abuja, saying the programme was part of the many intervention programmes to reduce the burden of an increase in pump price on the masses.

To actualise the programme, President Bola Tinubu launched the presidential CNG initiative in October 2023 to deliver cheaper, safer and more climate-friendly energy.

He added that the government had provided N100 billion (part of the N500 billion palliative budget) to purchase 5,500 CNG vehicles, 100 electric buses and more than 20,000 CNG conversion kits, alongside spurring the development of CNG refilling stations and electric charging stations.

“With necessary tax and duty waivers approved by President Tinubu in December 2023, the PCNGI committee is partnering with the private sector to deliver the promise on the initiative.

“Also, a safety policy document on 80 standards and regulations that must be strictly adhered to by operators has been developed and approved to ensure CNG conversions are done safely and reliably,” he said.

Mr Onanuga said that the deployment of CNG buses and tricycles and the vision to get at least one million natural gas-propelled vehicles on the roads by 2027 would mark a major energy transition in the country’s transportation industry.

He said that the use of more expensive diesel and petrol would gradually be phased out, when many vehicles, including trucks, run on natural gas, adding that 30 of the 36 states had the gas in abundance.

“Remarkably, the Tinubu administration, in driving the nation to the desired destination, has flagged open a new industry, along with thousands of new jobs.

“Four plants owned by JET, Mikano, Mojo, and Brilliant EV located in various parts of the country are involved in the assembly of the Semi Knocked Down (SKD) components of the CNG buses.

“JET, which has received the SKD parts, is coupling the buses in Lagos and is working towards delivering 200 units before the first anniversary of the Tinubu administration.”

Mr Onanuga said that Brilliant EV would assemble electric vehicles meant for Kano and Borno, which would not have access to CNG for now as well as in key Nigerian cities and university campuses.

“In all, over 600 buses are targeted for production in the first phase that will be accomplished this year.

“A new plant on the Lagos-Ibadan Expressway will assemble thousands of tricycles.

“The SKD parts, manufactured by the Chinese company LUOJIA in partnership with its local partner to support the consortium of local suppliers of CNG tricycles, are set for shipment to Nigeria and expected to arrive early in May.

“About 2,500 of the tricycles will be ready before May 29, 2024.”

He said that thousands of conversion kits for petrol-powered buses and taxis that want to migrate to CNG are also ready with CNG cylinders.

The Presidential aide added that the Federal Government intended to provide them at subsidised rates, especially to commercial vehicle drivers, to bring down the cost of public transportation.

He revealed that the PCNGI was working with 22 other agencies, including the Standards Organisation of Nigeria and Nigeria Automotive Design and Development Council, to deliver 80 Natural Gas Vehicle Conversion and Associated Appliances Standards for the country.

He added that an app MYCNG.NG to embed the Nigeria Gas Vehicle Monitoring Systems would show CNG conversion and refuelling sites in the country.

“The Tinubu administration is an enabler of the evolving CNG industry. In collaboration with the private sector, the PCNGI is set to deliver 100 conversion workshops and 60 refuelling sites spread across 18 states before the end of this year.

“The vision of Mr. President to deliver one million gas vehicles cannot be possible without the private sector, including the RTEAN, NARTO, NURTW, and players in the downstream sector of the transportation chain and financiers.”

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Click to comment

Leave a Reply

Auto

Lagos to Reform Korope, Danfo

Published

on

korope danfo

By Adedapo Adesanya

The Lagos State Government has said it is ready to integrate mini and midi buses, popularly known as Korope and Danfo, into the state’s Bus Reform Initiative.

The Special Adviser to Governor Babajide Sanwo-Olu on Transportation, Mr Sola Giwa, made this known in a statement on Thursday in Lagos.

In the statement signed by the Director of Public Affairs of the ministry, Mrs Bolanle Ogunlola, the governor’s aide said the project was in the planning phase.

“The documentation process for bus operators interested in the scheme is ongoing, with 10 operators having submitted letters of intent to the state Ministry of Transportation, of which six have already been confirmed.

“All participating buses will undergo physical verification by the Vehicle Inspection Service and Motor Vehicle Administration Agency to ensure their roadworthiness and proper documentation.

“Once verified, the buses will be branded in the Lagos Metropolitan Area Transport Authority colours and will be equipped with validators,” he said.

Mr Giwa also said that a framework was being developed to integrate union dues deductions into an e- ticketing system, while addressing activities of hoodlums extorting money from transporters.

He said that the initiative would be test-run for three months before full implementation.

He said that full implementation of the reform would prevent mini buses from operating on the Lekki-Ajah Expressway.

Mr Giwa said that the buses would be deployed to inner routes and communities.

Continue Reading

Auto

Nigeria Gets €245m Chinese Loan for Kaduna-Kano Rail Project

Published

on

Kano-Kaduna rail project

By Adedapo Adesanya

China Development Bank (CDB) has recently granted the first tranche of a loan worth €245 million ($255 million) to support the Kaduna-Kano railway in Nigeria.

This will provide crucial financial backing to ensure the smooth construction of the transportation initiative, the CDB said on Tuesday.

The railway is on the list of practical cooperation deliverables released during the third Belt and Road Forum for International Cooperation in 2023.

The project has been making steady progress so far, the CDB said, adding that going forward, it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management.

The Kaduna-Kano railway, spanning 203 kilometres in total, is set to provide a direct rail connection between Kano, an important northern city in Nigeria, and the country’s capital Abuja upon its completion, according to the CDB.

In July 2024, the Senate Committee Chairman on Land Transport, Mr Adamu Aliero reaffirmed the commitment of the National Assembly in ensuring that funds are made available for timely completion of the project.

Mr Aliero, while speaking to the press on the sidelines of the inspection at Maikarfi, Kaduna State, explained that the joint committee of both the House and also the Senate were on site to inspect the construction of a rail line between Kaduna to Kano.

“We have just taken a ride from Kano to Maikarfi. So far, we are impressed with what we have seen. We have seen a lot of dedication by the ministry and also by the contractor trying to deliver the project in time, I think 2025, they said.

“We understand that the deadline given to them is 2025 or 2026. But we are hoping that by 2025 if they sustain the tempo, they will be able to deliver. We will lobby our colleagues in the National Assembly to ensure that this project does not suffer from inadequate funding.

“There are other challenges connected with the project, particularly the funding arrangement, which we intend to discuss with the Minister of Finance, the Attorney General of the Federation, and also the Minister of Transportation,” he added.

Continue Reading

Auto

Future of Transportation is Electric Not Fuel, is Africa Ready?

Published

on

Timi Olubiyi Future of Transportation

By Timi Olubiyi, PhD

The year 2025 comes with a lot of hope and many aspirations, one of such is the increased benefits and possibilities around electric vehicles (EVs).

Even though, it is no more news and that it does not come as a surprise that the petrol and diesel-powered automobile/cars we have long been accustomed to still dominate the motoring landscape and indeed Africa with all the innovations and developments around mobility and transportation.

No doubt, the world is advancing clean and renewable energy options in particular around electric vehicles (EV) adaptations. More so the popularity of EVs is growing and the disruption is already rapid in developed economies. But what baffles the author is that Nigeria seems not to be bothered and we continuously move on with our daily tasks without referencing what happens around us globally.

It is a common knowledge that the way to go is net zero emissions by 2050 across all business units and supply chains including transportation. This is a key priority and a growing renewable energy footprint around the world but Africa is to the contrary from context observation.

From the records and with a follow up survey by the author in 2024 across the Republic of Ireland a small country with a population of less than 6 million, as it stands four out of every five homes now power their cars with 100% electric because the future of energy is electric.

Such acceptance can promote energy security, zero-emission, reduced energy cost and sustainable future easily without any economic concerns. Is this achievable in Nigeria in the nearest future? Achieving net-zero emissions in Africa presents significant challenge due to factors like limited access to reliable electricity, reliance on traditional fuels, and underdeveloped and old infrastructure.

In Nigeria and indeed most countries in Africa transportation sector is one of the largest contributors to global carbon emissions, with traditional gasoline(fuel) and diesel vehicles being primary sources of air pollution and environmental degradation.

In response to these concerns, the rise of electric vehicles (EVs) could represent a significant shift towards more sustainable and eco-friendly transportation options yet we are at the infant stage of adoption on the continent. As the world grapples with climate change and the depletion of fossil fuels, electric vehicles offer a promising solution to reduce pollution, enhance energy efficiency, and promote sustainability.

Therefore, this piece presents key benefits, and the need to explore policy options for future potential of electric vehicles in Nigeria and indeed on the continent of Africa.

From observation, one of the most compelling benefit of wide spread usage of electric vehicles is their environmental impact. Unlike traditional vehicles that run on internal combustion engines, EVs are powered by electricity stored in batteries, which means they produce zero emissions. This can significantly reduce air pollution, particularly in urban areas like Lagos, Port Harcourt, Abuja and the likes where traffic congestion and poor air quality are major concerns.

By shifting from gasoline(fuel) to electricity, EVs can help reduce the number of harmful gases, such as carbon dioxide (CO2), nitrogen oxides (NOx), and particulate matter, which are linked to health challenges and serios climate change. Emissions, primarily carbon dioxide is a key driver of climate change. The gas is usually trap heat in the atmosphere gradually warming up the planet and causing intense heat wave and disruption of the ecosystems.

So, to reduce the emissions of CO2 from combustion engines, working by burning fuel and overheating with high engine noise, electric vehicles are desirable. Because they more energy-efficient compared to their gasoline-powered counterparts, more so, EVs are with less maintenance culture and repair expectations are low.

In fact, EVs are more cost-effective in the long run, despite high initial purchase price because over time the operational costs of running are lower. Believe it or not, EVs have fewer moving parts compared to conventional cars, where there is no need for oil changes, oil filters and radiator or coolants.

In fact, the brake systems tend to last longer because of regenerative braking technology, a feature common in many electric vehicles. The cost of electricity for charging is also typically lower than the cost of the usual fuel or diesel, further reducing the lifetime costs of owning an EV.

With all the aforementioned the future of electric vehicles looks promising but technological advancements in battery storage, such as solid-state batteries and faster-charging technologies, are expected to improve to enhance the overall EVs performance, its affordability, and convenience.

As the global demand for clean energy grows globally, it is the hope of the author that governments in Africa in particular Nigeria will step up their efforts to encourage the adoption of electric vehicles. Though effort on Compressed Natural Gas (CNG) promotion is high in Nigeria in recent times which is a clear alternative to high cost of fuel currently but the real global standard and future of transportation is electric.

Many countries have now introduced stricter emissions regulations, offering financial incentives such as tax credits, rebates, and subsidies to make EVs more accessible to consumers Nigeria should not be an exemption, our government can also initiate similar policies.

Additionally, several governments have set ambitious goals to phase out the sale of new gasoline and diesel vehicles in favor of zero-emission models EVs within the next few decades, Africa can also start promoting this.

In addition, businesses and investments drive can be channeled into this developing critical area. Such as investment in home charging solutions, public charging infrastructure,wide spread charging stations, encouraging car manufacturers and private companies to set up assembling plants in Africa countries.

Investing inhome charging solutions, will make it easier for individuals to charge their vehicles overnight. Theseinvestment options and widespread infrastructure will help reduce range anxiety and make electric vehicles a more viable option for everyday consumers in Africa.

While challenges such as charging infrastructure, battery costs, and range limitations remain, ongoing advancements in technology, along with supportive policies and growing consumer demand, are driving the transition toward a cleaner, more sustainable transportation systemthios can also happen in Africa.

As electric vehicles become more affordable and accessible, they have the potential to significantly reduce our reliance on fossil fuels, improve air quality, and create a more sustainable future for generations to come. Good luck!

How may you obtain advice or further information on the article? 

Dr Timi Olubiyi, an Entrepreneurship & Business Management expert with a PhD in Business Administration from Babcock University, Nigeria. A prolific investment coach, adviser, author, columnist, seasoned scholar, Member of the Institute of Directors, Chartered Member of the Chartered Institute for Securities & Investment (CISI), and Securities & Exchange Commission (SEC) registered capital market operator. He can be reached on the Twitter handle @drtimiolubiyi and via email: [email protected], for any questions, reactions, and comments.

The opinions expressed in this article are those of the author- Dr Timi Olubiyi and do not necessarily reflect the opinions of others.

Continue Reading

Trending