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Fed Govt, partners to roll out 5,000 CNG-powered tricycles in 3 months

He said the move supports  the Presidential Compressed Natural Gas (P-CNG) initiative aimed at advancing Nigeria towards sustainable energy solutions.

The Federal Government will in partnership with Luoyang Northern Enterprises (Luojia) roll out 5,000 Compressed Natural Gas (CNG)-powered tricycles within the next three months.

Speaking during the commissioning of the Luojia tricycle assembly plant in Ogun State, Programme Director/Chief Executive, Presidential CNG Initiative (P-CNG), Michael Oluwagbemi, disclosed that the 5,000 tricycles form part of the initial units acquired by the government under the Presidential CNG Initiative to enhance affordable and eco-friendly transportation across Nigeria and to mitigate the impact of fuel subsidy removal.

He said the move supports  the Presidential Compressed Natural Gas (P-CNG) initiative aimed at advancing Nigeria towards sustainable energy solutions.

To support this initiative, Oluwagbemi stated that government has introduced several incentives, including Value Added Tax (VAT) exemptions and custom duty waivers for the tricycles entering Nigeria.

Furthermore, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is providing CNG at a concessionary price, offering more than a 40 per cent discount on the current price, ensuring users up to 70 percent savings compared to operating on petrol for the same distance.

Oluwagbemi also announced that “The government has mandated all Ministries, Departments, and Agencies (MDAs) to purchase only CNG-powered vehicles moving forward. This decision is expected to drive the adoption of cleaner energy solutions across the country.”

Highlighting the resultant economic benefits of the Luojia Assembly Plant, he said that “It will generate at least 60 direct jobs and over 6,000 indirect jobs. This collaboration with the private sector in implementing this initiative would boost economic growth and increase tax revenue for the government.”

Regarding the distribution and payment plan for beneficiaries, Oluwagbemi disclosed that the government is working with various tricycle organizations to identify potential beneficiaries under a loan scheme. “We are also developing a convenient payment plan for these individuals. Additionally, conversion kits will be made available at discounted prices to enable people to convert their existing vehicles to CNG.”

“The government is engaging with various stakeholders to increase the number and capacity of these refilling plants nationwide,” he added. This is even as he urged Nigerians, in line with President Bola Tinubu’s promises, to embrace and adopt CNG as Nigeria’s future for cleaner energy.

The officer in charge of the assembly plant, Gabriel Idowu, said that “The plant has the capacity to assemble 120 tricycles daily and over 30,000 in a year as it ramps up its capacity with time.” Idowu noted that each unit of the tricycle would cost between N3 – 3.5 million. He assured the public of meeting the initial request of 5,000 units.

“We are also making plans to ramp up our capacity in terms of numbers. We have expatriates who will be coming in from China to train our team on the ground. We are also open to collaborating with individuals who have hands-on experience in the field.”

Also speaking, Managing Director/Chief Executive Officer  Touchstone Global Investment Services (TGIS) Damilola Agboola, said  “the removal of fuel subsidy and the introduction of CNG by president Bola Ahmed Tinubu present an opportunity in which Luojia has come to Nigeria.

Luoyang Northern Enterprises (Luojia) has been dedicated to producing high-quality motorcycles, tricycles, scooters, engines and spare parts in the last five decades. It has the capacity to assemble 120 tricycles that are CNG powered per day with the capacity to assemble 30000 (thirty thousand) in a year. It is also an opportunity for job creation. At the start we expect a minimum of 60 direct jobs.”

Former Lagos State Commissioner for Transport, Dr. Kayode Opeifa explained that the adoption of CNG tricycle means cheaper transportation which translates to more money in people’s pockets and a cleaner environment. “It is energy security for Nigeria, apart from the fact that CNG is cheaper the cost of transport will come down and inflation will come down,” he said.

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