FERMA Begins CNG Conversion Of Operational Vehicles

The Federal Road Maintenance Agency (FERMA) has signed a memorandum of understanding (MoU) with the Presidential Committee on CNG to begin the conversion of operational vehicles to run on compressed natural gas (CNG).

The managing director of FERMA, Mr Emeka Agbasi, revealed this when he hosted the programme director of the presidential CNG initiative, Mr Michael Oluwagbemi, at the signing ceremony of a memorandum of understanding between the two bodies.

He said the cost of premium motor spirit and diesel contributed substantially to the agency‘s recurrent expenditures, with its fleet of vehicles spread across the country.

On his part, the programme officer of the PCNGI, Mr Michael Oluwagbemi, said the initiative would convert all commercial vehicles owned by the road transport unions free of charge. At the same time, it will subsidise ride hailing companies by fifty percent to convert their vehicles.

The PCNGI said the conversion of FERMA‘s vehicles would cut costs for the agency by between forty and seventy percent, and the MOU will be for the first four years and renewable for another four as the framework aims to deepen the collaboration between the two agencies.

He explained that the rationale is to drive down the cost of transportation as the CNG is way cheaper, cleaner, and more sustainable than fuel.

The Pi-CNG says it aims to convert over two million cars in collaboration with its private sector partners, who have already begun the process in various centres across the country.

FERMA‘s role in the MoU is to “Enable access roads to Pi-CNG priority facilities, including identified LNG sites, warehouses areas, and routes for the virtual pipeline network.

“Lead the identification and prioritisation of road maintenance and development needs, especially in Pi-CNG‘s core areas.

“Ensure compliance with regulatory and policy frameworks for CNG and EV Projects”.