The Federal Government on Tuesday launched the Autogas program which is planned to deliver at least one million vehicle conversions by the end of 2021 and herald a clean energy transition for Nigeria as well as deliver cheap transportation fuel.
The government says it will offer free conversion of some cars to enable the success of the programme, with plans to convert at least 40percent of cars within 10 years.
The Central Bank of Nigeria (CBN) will make N250 billion available for infrastructure in a bid to expand gas use and cut reliance on imported fuel, the government said on Tuesday.
The plan is part of government effort to free itself of unsustainable fuel subsidies, as the COVID-19 pandemic has slammed oil prices which provide 90percent of Nigeria’s foreign exchange and more than half of its budget.
“These developments have made it imperative to focus on gas as an alternative fuel,” Buhari said via video link to the event.
Th nations refineries are completely shut down ahead of a planned turn around maintenance, leaving the country entirely dependent on imported fuel.
Speaking during the launch, Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Mr. Mele Kyari, said, select NNPC stations across Nigeria will offer free conversion of some cars to enable them to run on liquefied petroleum gas (LPG) or compressed natural gas (CNG). There are currently 80 locations in the country capable of fuelling the vehicles.
The roll out is the culmination of the resolve of the President Buhari-led government to deepen domestic usage of natural gas in its various forms. It is also in line with the government’s plan to make gas the first-choice source of cheaper and cleaner energy for Nigerians in their personal and industrial endeavours.