You are here: HomeBusiness2023 11 14Article 710582

Business News of Tuesday, 14 November 2023


FG gives cost for converting petrol vehicles to cheaper CNG as a litre of fuel sells for N685

Vehicle Vehicle

Nigerians are expected to pay between N300,000 and N600,000 to convert their petrol vehicles to Compressed Natural Gas (CNG).

Michael Oluwagbemi, the Chief Executive Officer of the Presidential Compressed Natural Gas Initiative (P-CNGi) Steering Committee, disclosed this.

Oluwagbemi, however, stressed that the figure is an estimation and that exchange rate compatibility will be a factor.

FG's CNG plans

Dailytrust reports that Oluwagbemi also revealed that the FG is planning to establish 10,000 CNG vehicle conversion workshops in the near future.

It was also revealed that Nigeria aims to begin assembling and manufacturing CNG conversion kits.

His words: “Currently, we are importing conversion kits, but under this initiative as a relief for Nigerians, the government is offering discounts on the immediate conversion cost and is considering flexible payment options as the committee continues to review the CNG initiative, offering more discounts and incentives.”

There are expectations from the P-CNGi committee that government plans on gas-powered vehicles will attract over $2 billion in investments into the Nigerian economy and create more than 250,000 employment opportunities for different professionals, Punch reports.

Fuel price increase

Meanwhile, according to a report by Punch, filling stations, particularly those operated by independent marketers, now dispense Premium Motor Spirit, popularly called petrol, at higher prices than the bands approved by the Federal Government.

Some North filling stations sell as high as N685/litre.