- Finance Minister Olawale Edun projects significant cost savings with the introduction of CNG buses, aiming to reduce transportation expenses
- Edun emphasizes the substantial difference in fuel costs between CNG and petrol-powered buses, foreseeing a positive impact on inflation reduction
The federal government has projected that the introduction of Compressed Natural Gas (CNG) buses through the Presidential CNG Initiative (PCNGi) will result in a significant decrease in transportation expenses, ultimately aiding in the reduction of inflation.
Finance Minister and Coordinating Minister of the Economy, Olawale Edun, made this assertion during a visit to the JET Motor Company (JET) Assembly Plant in Lagos, where CNG buses are being assembled.
Edun, as reported by the Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, expressed confidence in the benefits of the initiative, stating, “I have seen the CNG buses that Nigerians are asking about. I have tested and driven them. I have seen them being assembled. The benefits will soon be available to Nigerians.”
He emphasized the substantial cost savings offered by CNG buses compared to their petrol-powered counterparts, noting that filling a CNG bus with fuel costs significantly less than filling a petrol-powered bus of the same capacity.
Edun elaborated, “Whereas it costs about N55,000 to fill a 15 to 20-seater bus with petrol, it will cost between N12 and N15,000 to fill a CNG bus of the same capacity. This is three times, if not four times less. This is a huge saving that will help reduce transport costs and at the same time help reduce inflation.”
Highlighting the objective of the PCNGi to provide affordable mass transit, Edun commended JET for employing local talent in the assembly of the vehicles.
During the visit, Chairman and Founder of JET, Chidi Ajaere, led the minister through the assembly plant. Also present were the CEO of JET Motor Company, Derek Ewelukwa, along with other team members and representatives from PCNGi and the National Automotive Development and Design Council.
Ajaere lauded President Bola Tinubu for promoting local production of CNG vehicles and expressed determination to make the project a success with the support of the PCNGi team.