The Federal Government announced its intention to convert one million vehicles from petrol to Compressed National Gas (CNG) by 2025. The Minister for Steel Development, Shuaibu Audu-Abubakar, made this announcement during the Conversion Incentive Program (CIP) and bus handover ceremony at the Lokoja Mega Terminal on Wednesday.
Audu-Abubakar emphasized that the Federal Government’s Renewed Hope agenda, spearheaded by President Bola Ahmed Tinubu, aims to alleviate the suffering of citizens following the removal of the fuel subsidy. He mentioned that plans are in place to make Ajaokuta Steel a gas hub for the nation.
“We have a proposal that the President will be looking at. The proposal will make Ajaokuta Steel the gas hub for the nation,” he said. He noted that the strategic location of Ajaokuta Steel will enable it to produce sufficient gas to serve the Kogi-Kaduna-Kano (KKK) projects and other gas initiatives across the country.
The minister highlighted that the CNG initiative is expected to reduce transportation costs by 40 percent through the adoption of CNG vehicles. He reiterated the gravity of Nigeria’s economic situation, stating that the removal of the fuel subsidy was a necessary step to save the nation from a potential collapse.
Kogi State Governor, Ahmed Usman Ododo, expressed support for the initiative, noting that the federal government has presented 10 CNG buses and will offer free conversion for commercial vehicles in the state, which is anticipated to reduce transportation costs. Represented by his deputy, Salifu Oyibo, Governor Ododo affirmed the administration’s commitment to supporting initiatives that benefit the citizens.
Under the new initiative, 250 youths from across the 21 local government areas of Kogi State will receive training in critical areas, including CNG conversion, welding and fabrication, automobile mechatronics, and solar system installation. The program will commence as soon as the modalities with the proposed partner, the Nigeria-Korea Friendship Institute (NKFI), are finalized.