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.