The Federal Government has launched the Conversion Incentive Programme in Uyo, Akwa Ibom State, aiming to diversify the transportation sector and mitigate the economic impact of fuel subsidy removal. The unveiling ceremony was held at Nsik Motors Terminal, where Michael Oluwagbemi, the Programme Director of the Presidential Compressed Natural Gas Initiative (Pi-CNG), emphasized the initiative’s dual objectives: easing financial burdens for citizens and promoting the adoption of compressed natural gas (CNG) vehicles. He noted that this program serves as a pilot project designed to establish a new standard for CNG vehicle conversion and training in Akwa Ibom State, particularly in light of recent economic challenges faced by Nigerians.
Represented by Mr. Tosin Coker, Oluwagbemi reiterated the government’s dedication to supporting citizens grappling with the fallout from the fuel subsidy removal. The Pi-CNG aims to facilitate the conversion of commercial vehicles to CNG at no cost to transportation operators. The government is providing necessary kits and cylinders through accredited Conversion Centres, thereby eliminating the financial obstacles that might deter transport unions and operators from adopting CNG technology. The overarching goal is to transition to cleaner, safer, and more reliable modes of transport, urging all stakeholders, particularly transport unions, to embrace this initiative.
During the event, Nsikan Johnny, the Chairman of Nsik Oil and Gas Limited, expressed gratitude to the federal government for the program and encouraged Nigerians to recognize the potential of vehicle conversion to CNG as a vital solution to the economic difficulties stemming from subsidy removal. He committed to promoting clean energy and pledged to facilitate the establishment of a compressed natural gas mother station, set to open soon in Esit Eket Local Government Area. This initiative is aligned with the company’s broader strategy to develop a sustainable gas infrastructure that would benefit the local population while also providing immediate relief to citizens amid changing economic circumstances.
Johnny’s firm also intends to initiate training programs for local residents, further emphasizing their commitment to community engagement and capacity building. As part of the initiative, he announced plans to deploy three mobile dispensers within six months to ensure accessibility to CNG for vehicle operations. By carefully planning the rollout of mobile systems alongside mother-and-daughter stations, the company aims to enhance the efficiency and reach of CNG distribution across Akwa Ibom State, thus reinforcing the federal initiative to alleviate the effects of fuel subsidy removal.
The program has garnered positive responses from various stakeholders. The state Commissioner for Transport, represented at the event, shared the state government’s enthusiastic support for the CNG initiative, anticipating it would significantly aid energy transition and contribute to a more sustainable transport sector. Positive sentiments were echoed by representatives from transport unions, highlighting unity among stakeholders in pursuit of cleaner energy solutions that reflect nationwide goals for a more sustainable transport system.
A pivotal moment of the ceremony was marked by the signing of a Memorandum of Understanding between the PCNG, Nsik Oil and Gas, and additional partners, signifying a collaborative effort towards achieving the program’s objectives. This partnership exemplifies a commitment from all parties to work together to not only transform the transport sector in Akwa Ibom State but also to set a precedent for similar initiatives across Nigeria. The Conversion Incentive Programme signifies a proactive response to current economic challenges, with a focus on integrating sustainable energy practices that could enhance the quality of life for Nigerian citizens while reducing reliance on traditional petroleum-based fuels.
