NRC in Strategic Collaboration With Pi-CNG

NRC in Strategic Collaboration With Pi-CNG 

.... We are celebrating President Tinubu's administration 2 years achievements in office by transiting to CNG as a key component of the Renewed Hope agenda - Opeifa

CNG attracted over $500, 000 investment into Nigeria's economy in the last one year -  Micheal Oluwagbemi

It was a gathering of who is who in the Nigerian transportation, logistics and mobility sector as the Nigerian Railway Corporation (NRC) under the leadership of Dr Kayode Opeifa today in Lagos signed an MOU for strategic collaboration with the Presidential Initiative on Compressed Natural Gas (Pi-CNG) at the Mobolaji Johnson train station in Ebute Metta Lagos.

The event had in attendance the MD of the Nigerian Railway Corporation (NRC) Dr Kayode Opeifa and his management team, the Pi-CNG team was led by the programme director/chief executive Mr Micheal Oluwagbemi, the MD of LAMATA Engr Abimbola Akinajo and her team, the commissioner of Police, Nigerian Railway Corporation CP Iliyasu Baba, NSCDC, civil society organizations leaders, the principal of the Nigerian Railway Corporation (NRC) training school and the students, captains of industries and transportation and logistics companies executives, security operatives, the two inhouse trade unions of the NRC, staffs, members of the press, amongst several others.

Mrs Omolara Obileye of Pi-CNG opened proceedings at the strategic engagement by explaining to the audience the reason for the establishment of the Pi-CNG by the present administration in the wake of the removal of fuel subsidy, which was to drive Nigeria's transition from the use of fossil fuel to CNG which is cheaper, safer, cleaner and environment friendly. 

She highlighted that CNG stations have been deployed across the 6 geopolitical zones of the country in order for citizens to take advantage and enjoy the benefits. She made it known that the conversion of commercial vehicles using fossil fuel to CNG was executed free of charge in line with Mr President's directive, while private vehicle owners are free to access the programme and that there is a credit window which can be accessed within a 24 months period put in place by CreditCorp in conjunction with Pi-CNG under the Renewed Hope agenda.

She mentioned that presently the conversion of cars to CNG is ongoing under the Conversion Incentive Programme (CIP) in 18 states plus the FCT Abuja across the country.

The chief host of the occasion and the managing director/chief executive of the Nigerian Railway Corporation (NRC) comrade Kayode Opeifa in welcoming all to the NRC strategic collaboration with Pi-CNG, noted that the launch of CNG by President Bola Tinubu was a succour, substitute and solution to Nigeria's energy crisis after the removal of fuel subsidy.

According to the MD of NRC, CNG is safer, cheaper and cleaner and is a transition that ought to be embraced by all Nigerians in view of our present socio economic reality and climate change.

Dr. Kayode Opeifa reiterated that railway has always been at the centre of Nigeria's mobility, because it's the engine room of Nigeria's logistics. He identified the CNG as a likely contributor to the rise in Nigeria's GDP because of the role it has played in reducing the cost of transportation which has inadvertently impacted on the downward slide in the prices of goods and services.

Comrade Kayode Opeifa noted that the 

transportation sector contributes not less than 6% to the economy of any developing country, but that sadly, reverse is the case here in Nigeria. He commended some states governments for keying into the railway transportation system under the present dispensation.

Dr Opeifa stated that the NRC/Pi-CNG collaboration will lessen the burden of the cost of diesel by the NRC transiting all vehicles in its fleet to CNG and will thus be saving between N50-100 million annually. He mentioned that NRC is going to train people on CNG modules and operations and also transit it's training school to a CNG conversion centre to service the Nigerian people.

He emphasized that the NRC will be establishing an intermodal shuttle with the introduction of CNG and electric propelled vehicles at all NRC train stations to convey passengers to and fro. He stated that today's programme is designed to mark the second year anniversary of President Bola Tinubu administration, in celebration of his achievements in the transport, logistics and mobility sector.

Dr Opeifa noted that Mr President has done so much for the industry that at NRC, he and his management team are determined and focused on doubling their commitment to national economy and growth by this collaboration which will succeed in reducing transportation cost through the deployment of CNG transportation system and thus bring down the prices of goods and services nationwide.

The project director of Pi-CNG Mr Micheal Oluwagbemi stated that Pi-CNG started in May 2024 in Lagos and that it's a thing of joy that they are back in Lagos to commemorate the 2nd year anniversary of the President Bola Tinubu administration in office. He noted that his first challenge in office was the lack of information and the need to solicit the support of all Nigerians to understand what CNG was all about in the midst of the campaign of misinformation and calumny.

He emphasized that as a result of the removal of fuel subsidy, the cost of transportation, goods and services went up astronomically. He affirmed that CNG is a fuel of choice and cost because It's cheaper, safer and cleaner. Mr Oluwagbemi went ahead to enumerate the mandate of the Presidential initiative on CNG to include amongst others, to

drive the transition and adoption of CNG and other alternatives source of energy for transportation and logistics in the economy.

The Pi-CNG project director listed the achievements of his organization to include the upsurge in the numbers of CNG converted vehicles from 4000 to between 50,000 - 100, 000 by 2024 and hoped to reach 250, 000 vehicles by the end of 2025. He stated that despite the challenge of misinformation faced by CNG, it has attracted investment of over $500, 000 in the last one year.

According to Mr Micheal Oluwagbemi, CNG faced a lot of misinformation in the public space, but that they have been able to weather the storm through consistent advocacy and enlightenment engagements across all the states of the federation.He informed the gathering of the Pi-CNG collaboration with stakeholders in the oil and gas industry like NIPCO, NNPCL, BOVAS, among others to set up CNG stations and that the Lagos State government is investing in 8 mother stations which will create 175,000 additional employment this year.

Mr Oluwagbemi noted that the collaboration between NRC and Pi-CNG is meant to transform our transportation and mobility sector for the good of the Nigerian people and economy in line with the Renewed Hope agenda of President Bola Tinubu administration.

The Pi-CNG project director stated that the armed forces are the heaviest users of diesel in Nigeria and that there was the need for them to transit to CNG vehicles in order to free up resources that can be deployed to other areas of need of the armed forces, even as he informed that Pi-CNG has handed over CNG vehicles to the armed forces and is looking forward to converting all their vehicles to CNG. 

He informed the audience present that Mr President's goal is to have about 1 million CNG vehicles on our roads within the next few years and that they diligently working around that mandate. Mr Oluwagbemi is of the view that collaboration of this nature should inspire government institutions and the private sector to deepen their relationship. He noted that while the country spends N1 trillion annually on fuel subsidy which was a drain on public resources before it was terminated, Pi-CNG in the last two years has only been appropriated N200 billion which has impacted positively on the economy for all to see.

The MD of LAMATA Engr Mrs. Abimbola Arinola on her part, congratulated NRC and Pi-CNG for the collaboration and affirmed her organization support for CNG, even as she went ahead to inform that all vehicles in LAMATA fleet have been converted to CNG by Ibile holdings.

LAMATA she stated, believes in the CNG initiative, because it's been long expected even when Mr President made the pronouncement.

The highlight of the occasion was the signing of MOU on the strategic collaboration by the MD of NRC Dr Kayode Opeifa and the project director of Pi-CNG Mr Micheal Oluwagbemi, which was followed by the donation of a CNG bus to NRC by Pi-CNG.