The Federal Government of Nigeria is actively pursuing a goal to slash transportation costs by more than 50%, according to the Minister of Information and National Orientation, Mohammed Idris.
This announcement came during a meeting with the National Executive Committee of the Independent Petroleum Marketers Association of Nigeria (IPMAN) on Thursday.
Idris explained that the introduction of the Compressed Natural Gas (CNG) Initiative is a strategic move by the government, especially in the aftermath of the removal of the fuel subsidy, which led to an expected increase in the price of Premium Motor Spirit (PMS).
“The Federal Government immediately thought it wise, in addition to other measures, to introduce the CNG. The CNG is expected to bring down the cost of transportation by more than 50 per cent and I am happy that IPMAN is in the forefront in this vanguard of achieving the CNG Initiative,” he stated.
Highlighting the bold move by President Tinubu in removing the fuel subsidy, Idris emphasized that this presented a unique opportunity for organizations like IPMAN to lead in shaping Nigeria’s energy landscape.
He pointed out that the country has been actively seeking alternative ways to reduce transportation costs, and the CNG is considered the most effective solution.
The minister also highlighted the Federal Government’s commitment to the initiative, with the allocation of N100 billion for the purchase of CNG buses and the establishment of CNG centers nationwide.
Additionally, tax waivers have been introduced for importers of CNG kits and other investors in the sub-sector, further supporting the development of the CNG infrastructure.