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FEC Directs Agencies To Procure CNG-Powered Vehicles

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The federal executive council (FEC) says all new vehicles, generators or tricycles procured by the government and its agencies must be powered by compressed natural gas (CNG), solar or electric.

Among the significant decisions made during the FEC meeting on Monday was this one.

Sources claim that the decision had an impact on fresh demands made by the shipper’s council, an organisation related to the marine and blue economy, and the Nigeria Customs Service (NCS).

According to the sources, customs and the shipper’s council had applied for permission to purchase several hundred gasoline-powered operating cars.

Also, a request by the federal capital territory (FCT) to buy petrol generators was approved, however, the council insisted the generators must be powered by CNG or solar.

Likewise, the government also expects agencies to begin to convert petrol and diesel vehicles or generators to CNG.

On April 21, the presidency said it would launch the CNG initiative ahead of the first anniversary of Tinubu’s administration on May 29.

The presidency said the presidential CNG initiative (PCNGI), in collaboration with the private sector, will deliver 100 conversion workshops and 60 refuelling sites across 18 states before year-end.

Also, on July 31, 2023, Tinubu said his administration made provision to invest N100 billion between then and March 2024 to acquire 3,000 units of 20-seater buses powered by CNG.

Two months later, the federal government announced value-added tax (VAT) would be waived on CNG bus purchases, with plans to waive duty on parts.

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