The Federal Road Maintenance Agency (FERMA) has entered into a memorandum of understanding (MoU) with the Presidential Committee on Compressed Natural Gas (CNG) to initiate the conversion of its operational vehicles to utilize compressed natural gas.
The managing director of FERMA, Mr. Emeka Agbasi, made this
announcement during a meeting with Mr. Michael Oluwagbemi, the program director
of the presidential CNG initiative, at the MoU signing ceremony between the two
organizations.
Mr. Agbasi noted that the expenses associated with premium
motor spirit and diesel significantly impact the agency’s recurrent costs,
given its extensive fleet of vehicles distributed nationwide. In addition, Mr.
Oluwagbemi, the program officer of the PCNGI, stated that the initiative aims
to convert all commercial vehicles owned by road transport unions at no cost, while
also providing a fifty percent subsidy for ride-hailing companies to facilitate
the conversion of their vehicles.
The PCNGI stated that the conversion of FERMA’s vehicles to
Compressed Natural Gas (CNG) would result in significant cost savings for the
agency, ranging from forty to seventy percent. The initial Memorandum of
Understanding (MOU) will be in effect for the first four years, with the option
to renew for an additional four years. This framework aims to strengthen the
collaboration and partnership between the two agencies.
The primary objective of this initiative is to reduce
transportation costs by utilizing CNG as a more economical, environmentally
friendly, and sustainable alternative to traditional fuel.
The Pi-CNG project, in collaboration with private sector
partners, aims to convert over two million cars to Compressed Natural Gas (CNG)
fuel. The project is already underway in various locations across the country.
FERMA’s role in the Memorandum of Understanding (MoU) is t: Facilitate
access roads to Pi-CNG priority facilities, including identified LNG sites,
warehouses, and routes for the virtual pipeline network.
Lead the identification and prioritization of road
maintenance and development needs, particularly in Pi-CNG’s core areas.
Ensure compliance with regulatory and policy frameworks for
CNG and Electric Vehicle (EV) projects.