President Bola Ahmed Tinubu’s administration is gearing up to mark its first anniversary on May 29 by launching the first batch of compressed natural gas (CNG) vehicles. This initiative is aimed at mitigating the effects of subsidy removal, with plans to introduce CNG-powered mass transit buses and tricycles.

The administration plans to introduce a total of 2,700 CNG buses and tricycles across Nigeria as part of the initial phase by May 29. This effort is supported by a budget provision of N100 billion out of a total N500 billion allocated for procuring 5,500 CNG vehicles and 20,000 conversion kits following the fuel subsidy removal since Tinubu assumed office last year.

Private sector investments exceeding $50 million have been secured for CNG refueling stations, conversion centers, and mother stations nationwide. These investments were facilitated by tax and duty waivers approved by President Tinubu in December 2023.

The rollout of critical assets for the CNG initiative is set to begin before the first anniversary, with around 2,500 tricycles expected to be ready by May 29, 2024, along with 200 buses. The target for 2024 includes producing over 600 buses in the first phase.

A new assembly plant on the Lagos-Ibadan Expressway will contribute to the production of thousands of tricycles, with SKD parts from a Chinese company set to arrive in May. Additionally, thousands of conversion kits with CNG cylinders will be made available at subsidized rates to encourage the transition of petrol-powered buses and taxis to CNG, particularly benefiting commercial vehicle operators and reducing public transportation costs.