HomeBUSINESSFederal Government Launches CNG Initiative, Grants VAT Exemption for Bus Purchases

Federal Government Launches CNG Initiative, Grants VAT Exemption for Bus Purchases

This is a bold move towards a sustainable and cleaner future, the federal government has announced the waiver of value-added tax (VAT) on compressed natural gas (CNG) bus purchases, and it’s actively pursuing duty waivers for essential CNG vehicle parts. 

This significant development was unveiled by Zacch Adedeji, the chairman of the presidential Compressed Natural Gas Initiative (PCNGI) steering committee.

During the official launch of the initiative by Femi Gbajabiamila, Chief of Staff to the President, Adedeji emphasized the goal of leveraging Nigeria’s abundant and environmentally friendly gas resources to build a sustainable future.

He unveiled plans to establish multiple conversion centers across the country in the coming weeks, marking a crucial step in the nation’s commitment to environmental sustainability and economic growth.

Beyond its environmental benefits, the CNG project also holds promise for job creation. Adedeji, who also serves as the chairman of the Federal Inland Revenue Service (FIRS), underscored the project’s potential to generate employment opportunities.

In a symbolic moment, CNG buses were officially handed over to the state house during the ceremony. Michael Oluwagbemi, PCNGI project director, highlighted the keen interest of state governments in investing in CNG buses, with Rivers State already taking steps to address its transportation challenges.

One noteworthy aspect of the initiative is its commitment to making CNG conversions accessible to Nigerians. Oluwagbemi revealed that the federal government has ordered 55,000 conversion kits as part of an immediate palliative. 

The initiative aims to establish conversion centers across the country to facilitate 55,000 conversions within the next six months.

Furthermore, over 11,500 CNG-fueled vehicles will be introduced through partnerships with private sector entities, cooperatives, and state and union-operated mass transit operators. 

This concerted effort is set to make a substantial impact in reducing emissions and promoting sustainable transportation options.

AbdulRahman AbdulRazaq, Chairman of the Nigeria Governors’ Forum (NGF), highlighted the plan to prioritize universities as the initial beneficiaries of these CNG buses, with all state governments joining the transition. 

He also encouraged substantial investments from the private sector to support this transition.

The handover of CNG buses to the Aso Villa was met with enthusiasm, with Olusesan Adebiyi, the Permanent Secretary of the state house, acknowledging the potential for enhanced staff efficiency and punctuality. 

He assured the PCNGI and its partners of the state house’s commitment to converting its operational buses to gas-powered vehicles.

This initiative marks a significant step towards a greener and economically vibrant Nigeria, emphasizing the nation’s dedication to a cleaner, more sustainable future.



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