The Federal Roads Maintenance Agency (FERMA) has partnered with the Presidential Compressed Natural Gas Initiative (P-CNGi) to transition its fleet of operational vehicles to compressed natural gas (CNG). This collaboration aims to reduce transportation costs and promote a cleaner, more sustainable fuel source.
Michael Oluwagbemi, CEO and Program Director of P-CNGi, explained that the initiative seeks to convert all commercial vehicles owned by road transport unions at no cost. Additionally, ride-hailing companies will receive a 50% subsidy to convert their vehicles. This move is expected to decrease transportation expenses, as CNG is a more affordable and environmentally friendly alternative to fuel.
The agreement between FERMA and P-CNGi will span four years, with the option to renew for an additional four years. Oluwagbemi highlighted that this partnership will not only benefit FERMA but also contribute to the larger goal of converting over two million vehicles in collaboration with private sector partners.
Emeka Agbasi, Managing Director of FERMA, emphasized that his agency is leading the way among federal government ministries, departments, and agencies in adopting CNG-powered vehicles. This initiative aligns with the government’s efforts to reduce governance costs amidst economic challenges. By switching to CNG, FERMA expects to cut costs by 40-70%.
The federal government has announced plans to launch the CNG initiative, with over 20,000 conversion kits to be deployed soon. This move is part of a broader strategy to promote sustainable transportation and reduce reliance on fossil fuels.
