Subsidy Removal: Bank MD Makes Case For Use of CNG-Powered Vehicles For Transportation

• The MD/CEO of the Infrastructure Bank, Nkiru Chime, has revealed the importance of gas use in vehicles
• Chime said the use of CNG in powering vehicles is critical in times of subsidy removal
• Over 4,500 cars have been disbursed since 2010, totaling an impressive N43.7 billion

Nkiru Chime, Acting Managing Director of the Infrastructure Bank (TIB), has revealed enormous potential in Compressed Natural Gas (CNG).

Chime spoke as the Nigerian government ended subsidy payments on petrol, stating that gas-powered vehicles provide better alternatives to effective and efficient means of transport and clean energy.

More people now embrace CNG vehicles

She said this environmentally friendly alternative is gaining traction as a potential game-changer in how Nigerians commute, offering economic relief and reduced carbon emissions.

Read also

"Expect more companies to shut down, more job losses in Nigeria" - Chima Ugonna, CEO of Sterling Manufacturing

According to her, the fluctuating global oil prices and the economic strain of subsidizing petrol have triggered a reevaluation of Nigeria's transportation landscape.

Against this backdrop, the adoption of CNG as a fuel source is gaining ground due to its numerous advantages.

Compressed natural gas CNG presents a cleaner and more cost-effective substitute for traditional petrol.

The key selling point of CNG is its significantly reduced carbon emissions, aligning perfectly with Nigeria's commitment to environmental sustainability and climate action.

Chime said:

"CNG has the potential to address not only the environmental challenges posed by petrol but also the financial burden of subsidizing fuel prices."

With the removal of petrol subsidies at the forefront of national discussions, concerns have arisen about the potential impact on citizens' daily lives.

Drawing from the success of the Mass Transit Initiative under the Move Nigeria Scheme (MNS), which has achieved a commendable average collection rate exceeding 72%, the efficacy of comprehensive risk management approaches comes to the fore, the TIB boss said.

Read also

"A bag costs N4k": Dangote Cement reacts to allegations of selling cement cheaper in other countries

Infrastructure bank deployes 4,500 vehicles in 10 years

Per the bank chief, over 4,500 vehicles have been disbursed since 2010, totaling an impressive N43.7 billion – 174% of the fund's size.

These accomplishments underscore the bank's adeptness in the Mass Transit Business.

As Nigeria navigates the complex path of phasing out petrol subsidies, the emergence of the CNG platform offers a glimmer of hope.

As the nation's transportation narrative takes a greener turn, the CNG platform could emerge as a symbol of progress, sustainability, and resilience.

“We’re Ready”: FG set to roll out 9,000 filling stations for cheap, Alternative Fuel

Legit.ng reported that the Nigerian government has perfected plans to roll out about 9,000 autogas filling stations from the existing 10,000 outlets across Nigeria in six months under the National Gas Expansion Programme (NGEP).

According to the chairman of NGEP, Mohammed Ibrahim, the plan is advanced and would reflate Nigeria's economy by exploiting the country’s vast gas resources despite hiccups caused by what he called subsidy cabals.

Ibrahim revealed this on Saturday, August 26, 2023, and said some individuals had previously worked against the program.

Source: Legit.ng