CNG: Lower Transport Cost Imminent As FG Begins 50% Rideshare Conversion Incentive

As part of its effort to significantly lower the cost of transportation for Nigerians, the federal government has commenced the implementation of the Rideshare 50 per cent Compressed Natural Gas (CNG) conversion incentive programme for e-hailing taxis operators in the country.

Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, while launching the Rideshare CNG conversion incentive programme and my CNG app, in Abuja, on Friday, described the Ride Share sector as a vital part of the country’s urban transportation system, providing flexible and cost-effective mobility solutions to millions of Nigerians, particularly the youths, saying granting them incentives to convert to CNG would go a long way in reducing transportation cost.

The minister therefore encouraged RideShare drivers to take full advantage of the opportunity provided by the government through the CNG conversion discount initiative, recognizing the significant difference they are making not just for themselves, but for the nation as a whole.

According to him, “The CNG Conversion Incentive Programme, in conjunction with the My CNG App, is a bold response to these challenges. By offering a 50 per cent discount for rideshare drivers upon sign-up and scheduling through the My CNG App, we are not only making CNG a more viable option but also easing the financial burden on drivers. This will translate to more affordable transportation options for the users”, he added.

He pointed out that by choosing CNG, rideshare drivers would not only be saving costs but also contributing to the larger goal of national development.

RELATED

CIPMN Issues Final Warning To PMI Nigeria, Others

8 minutes ago

Nestlé, Govt Partner On Dairy Capacity Building

10 minutes ago

Earlier, the programme director/CEO, Presidential Compressed Natural Gas Initiative, PCNGI, Michael Oluwagbemi highlighted the significance of the e-hailing taxi service in the economy, disclosing that in 2020, the sector generated $290 million in revenues with seven million people using the service.
Oluwagbemi said: “Indeed, we know that transportation is responsible for about 14 per cent to 15 per cent of an average family’s spending. It contributes about 1.5 per cent to the overall economy, with an average of 5.1 per cent growth on a year-to-year basis”.

He pointed out that in Nigeria the vehicle-to-population ratio is about 60 vehicles to 1,000 people “with 41.1 per cent of the about 12 million vehicles in Nigeria are privately owned, with vehicle ownership concentrated in our urban areas.

“This means that the real opportunity for moving people around in an environment where there is no vehicle ownership is this ride-share technology that has become available across the land in the last 10 years. The global ride-hailing market is valued at about $130 billion as of 2020, and is anticipated to reach a value of $230 billion by 2026, registering about 8.75 per cent growth between 2021 and 2026.

“In 2020, revenues generated in Africa alone from the ride-share industry was about $2.5 billion, with Nigeria accounting for about $292 billion of that, and also accounting for 15 per cent of the 48.6 million people that use ride-shares.

“This is quite significant. That means Nigeria accounts for about 7 million people using ride-share that used ride-share in 2020. Our young people in our cities, from Lagos to Ibadan, to Ilorin to Ado Ekiti, to Lokoja, Abuja, Kaduna, Kano, Uyo, Port Harcourt, Aba, Onitsha, all the way to Benin City, to Maiduguri, all utilise ride-share services”.

Oluwagbemi explained that the use of CNG would reduce cost of fueling for the cab drivers by about 70 per cent, significantly lower their cost of operation and fare price for passengers.

Also speaking, the managing director, NASENI Portland Gas Limited, Folajimi Mohammed said the Presidential CNG initiative has been instrumental in “paving the way for innovations that will reshape the way we think about transportation and energy consumption in our country”.

Mohammed noted that the Rideshare CNG Conversion Incentive Programme is part of efforts to encourage the adoption of CNG among rideshare drivers.

“This program is a game-changer, offering substantial incentives for drivers to convert their vehicles to CNG, thereby reducing emission, greenhouse gas emission, and lowering fuel costs as well. It is a win-win for both the environment and the economy, and we at Portland Gas are fully committed to supporting this initiative in every way possible”, he added.

The executive vice chairman of National Agency of Science and Engineering Infrastructure (NASENI), Khalid Halilu, in his speech described the launch of the scheme as a milestone achievement in the deployment of technology to boost CNG utilisation as vehicular fuel in Nigeria. He commended partners, P-CNGi, Portland Gas and Dana Motors for their faith and commitment to the project.