FG redirects ₦100bn CNG bus fund to vehicle conversions, tricycles

The Federal Government has redirected its initial ₦100bn allocation for the purchase of 3,000 compressed natural gas (CNG) buses to vehicle conversions, tricycles and higher-capacity buses.

Tosin Coker, Chief Operating Officer of the Presidential Compressed Natural Gas and Electric Vehicles Initiative, disclosed this during an interview with ARISE NEWS on Sunday.

Coker said the government reviewed its original plan after establishing the presidential initiative in October 2023, concluding that purchasing 3,000 buses would not adequately address the country’s transportation needs.

He explained that the revised programme was designed to expand access to alternative-fuel transportation by supporting vehicle conversions and introducing different categories of buses.

“Yes, July was when that was announced, but that amount, that 100 billion, was used more, put to better use in what I’ve just said, in the conversion kits, as well as buses, bigger capacity buses, not 20-seater. We’ve done 50-seater buses in some cases and some smaller buses too. So yes, that’s what that has gone into,” he said.

President Bola Tinubu announced the ₦100bn allocation in July 2023 as part of measures to cushion the impact of petrol subsidy removal.

According to Coker, the original plan to procure 3,000 buses was reconsidered following the establishment of the presidential initiative in October of the same year.

He said the government realised that relying solely on buses would not adequately serve the country’s public transportation needs.

“When the initiative was set up, that moved to not just buses, because we realised it’s not just buses that move people around. We had, and we couldn’t reach everyone with just even 3,000 buses. Believe me, 3,000 buses, if you drop them in Lagos today, will do something, but it’s nowhere near enough to what less than Lagos needs,” he said.

Coker added that the programme initially focused on converting commercial vehicles to CNG, with support for transport unions, operators and tricycle users.

He said more than 25,000 vehicles were converted during the programme’s initial phase, with free conversion services provided in collaboration with transport unions and operators.

According to him, the approach reached more people than the original plan to purchase 3,000 buses.

Over 650 buses, 120,000 conversions recorded

Providing an update on the initiative, Coker said more than 650 buses had been introduced across the country, while the vehicle conversion programme had recorded over 120,000 conversions, primarily for commercial transportation.

He said the government had also procured conversion kits and buses to improve public transportation and reduce commuting costs.

However, Coker acknowledged that the number of CNG buses and tricycles currently operating in the country remained insufficient.

He said the initiative was working to expand deployment, with additional CNG and electric vehicles ordered for introduction in the coming weeks and months.

Coker expressed optimism that the expansion would lead to lower transportation fares as more alternative-fuel vehicles became available.

Coker urges states to invest more in transportation

The presidential initiative’s chief operating officer also called on state governments to increase their involvement in public transportation, stressing that the Federal Government could not meet the country’s needs alone.

“The states themselves can and should do more, and that is what this new drive from October 1 was all about. The states need to do more. Federal government cannot be the one expected to do everything,” he said.

He added that the Federal Government would provide support and demonstrate what was possible, while encouraging state governments and private-sector operators to expand transportation services.

On vehicle conversion costs, Coker said prices started at about ₦350,000, depending on the vehicle type and the complexity of the conversion.

He said the government was working with the Nigerian Consumer Credit Corporation and other providers to introduce financing arrangements that would allow eligible participants to pay in instalments over three, six or 12 months.

Coker said the long-term growth of the CNG industry would depend on private-sector participation, while the government would focus on creating an enabling environment, establishing training standards and ensuring safety.