FG urged to back local auto assemblers on CNG

• Published On: 04 September 2024 at 19:09

Taiwo Shittu, the Managing Director of Lanre Shittu Motors, has urged President Bola Tinubu to support indigenous auto assembly companies in order to accelerate the production of compressed natural gas-powered vehicles.

This appeal was made at a media briefing in Lagos, where Shittu discussed the company's plans to introduce locally assembled full CNG buses to the market.

The push for CNG vehicles comes after the removal of fuel subsidies in May 2023, which was followed by the Presidential CNG Initiative in October 2023.

The initiative seeks to promote more cost-effective, safer, and environmentally friendly alternatives to premium motor spirit (PMS), with the ultimate goal of reducing the country's reliance on costly petrol and diesel imports.

President Tinubu's initiative is expected to reduce transportation costs, increase productivity, and potentially save Nigeria billions in fuel imports.

Shittu continued: "We expect the government to support and identify companies with the capacity to sustain the campaign."

He mentioned that the assistance could be provided through funding, grants, and tax breaks.
He expressed the local assembly's full support for the Federal Government's CNG initiative, stating, "This is the only way to save the country right now."

He stated that the company will soon introduce new mass transit buses that are entirely powered by compressed natural gas (CNG) and manufactured in Nigeria.

He explained, "What we're selling is a CNG-powered engine. It outperforms a hybrid diesel engine and a converted diesel engine. Our engine will go more than a million miles.

"We are therefore investing heavily in the CNG project. In the first phase, we will roll out 100 units. We are accomplishing this with the assistance of our banks."

He stated that these vehicles will have 20% local content, including glass, seats, fabrications, and lubricants.

"The government should support us. We have 43 years of experience in this business. We have parts worth over N2 billion to support this initiative. So, we can't go wrong.

"We are opening a new facility in Ogun State with the intention of expanding our operations. "We're also working on battery manufacturing," he said.