The Nigerian government has introduced a new payment option that gives individuals the flexibility to convert their vehicles now and spread the cost over time with affordable monthly installments at competitive rates.
The convert now, pay later (CNPL) facilitates the conversion of petrol-powered engines to compressed natural gas (CNG). “Switching to Compressed Natural Gas (CNG) is now more accessible than ever,” said Presidential Compressed Natural Gas Initiative (PCNGi) - the agency in which the country’s government plans to distribute 2,000 CNG-powered tricycles to youths in the transportation sector.
Benefits of CNG-powered Vehicles
CNG-powered vehicles offer many benefits to users. The CNG-powered vehicle is more affordable than petrol or gasoline powered vehicles. According to PCNGi, environmental impact, safety, and reliability are among the key benefit of CNG.
In the aspect of environment impact, CNG produces fewer harmful emissions like carbon dioxide, carbon monoxide, and nitrogen oxides more than petrol powered vehicles. This makes it the best alternative that helps reduce air pollution and contributes to a greener environment.
CNG-powered vehicles are often significantly cheaper than gasoline or diesel powered vehicles. The low fuel cost CNG brings to the table makes a substantial savings on fuel expenses for car owners. In addition to that, CNG extends engine life because it burns more cleanly than traditional fuels, reducing engine wear and tear, which can lead to lower maintenance costs and a longer engine lifespan.
Using CNG also helps reduce reliance on imported oil and vehicles tend to run quieter than diesel-powered ones. It also worth mentioning that many governments offer tax benefits, rebates, or subsidies for CNG vehicle purchases or conversions as part of efforts to encourage cleaner transportation.
How CNG’s Convert Now, Pay Later Works
The Nigerian government has launched an app, downloadable on Google Play store and Apple App Store, that caters for the switching from petrol engines to CNG-powered engines. The mobile application is part of the Presidential CNG Initiative (PCNGi).
With the app, interest car owners can start online application processes and they can also use the app to find nearby conversion centres, book appointments, and access discounts and updates on fuel prices.
A Memorandum of Understanding (MOU) has also been signed between PCNGi and the National Union of Road Transport Workers (NURTW). This agreement outlines their mutual commitment to convert vehicles operating on the Abuja-Itakpe Station-Adavi route to run on Compressed Natural Gas (CNG).
By doing so, the MOU aims to promote cleaner, more cost-efficient transportation for vehicles on this route, reducing fuel costs and emissions for the transport sector. This collaboration is expected to support the broader adoption of CNG in public transport of Nigeria.
In addition to Nigerian government efforts to push the adoption of CNG forward in the country, another agreement was signed with the Nigeria Police Trust Fund (NPTF) to oversee CNG conversion centers as part of the Nigerian Police CNG Conversion Programme.
However, the Amalgamated Union of App-based Transporters of Nigeria (AUATON) has voiced dissatisfaction, stating that e-hailing drivers only receive a 50% discount and are still required to pay for installation, leaving them feeling excluded from the full benefits of the CNG conversion initiative.
