Michael Oluwagbemi, Programme Director and CEO of the Presidential Initiative on Compressed Natural Gas (PCNGI), announced that adopting Compressed Natural Gas (CNG) could lower fueling costs for cab drivers in Nigeria by approximately 70%.
This announcement was made during the launch of the Rideshare CNG Conversion Incentive Programme and the MYCNG App at the Portland/NASENI Centre in Abuja.
The new initiative aims to reduce fares for e-hailing taxis by offering a 50% discount on CNG conversions. The global ride-hailing market, valued at around $130 billion in 2020, is projected to reach $230 billion by 2026, reflecting an annual growth rate of 8.75% between 2021 and 2026.
In Africa, the ride-share sector generated about $2.5 billion in 2020.
Oluwagbemi emphasized the economic impact of e-hailing services, noting that the sector generated $290 million in revenue in 2020, with seven million users.
He highlighted that transportation accounts for 14 to 15% of a typical family’s expenses and contributes around 1.5% to the overall economy, showing an average annual growth of 5.1%.
He also mentioned that Nigeria’s vehicle-to-population ratio is roughly 60 vehicles per 1,000 people, with 41% of the country’s 12 million vehicles being privately owned and concentrated in urban areas.
This suggests significant potential for ride-sharing technologies to fill gaps in transportation where vehicle ownership is low.
Oluwagbemi explained that CNG would drastically cut fuel costs for cab drivers, thereby reducing their operating costs and passenger fares. The MYCNG App is introduced as a comprehensive solution for accessible and environmentally friendly fueling options.
Dr. Mohammed Bulama, representing the Minister for Information and National Orientation, praised PCNGI for its commitment to promoting CNG in alignment with President Bola Tinubu’s industrial transformation vision. “I commend (PCNGI) for boldly and committedly championing the cause of CNG, in line with President Bola Tinubu’s vision for the industrial transformation of Nigeria,”. He said.
Similarly, Ekperipe Ekpo, Minister of State for Petroleum Resources (Gas), highlighted the importance of the ride-share sector and the role of CNG in leveraging Nigeria’s natural gas reserves on the global energy stage.
Khalil Suleiman Halilu, Executive Vice Chairman/CEO of the National Agency for Science and Engineering Infrastructure (NASENI), underscored the role of PCNGI in Nigeria’s gas revolution and its prominence in discussions about the country’s energy future.
The Conversion Incentive Programme provides a 50% discount on CNG conversions for Uber and Bolt drivers who use the newly launched MYCNG App.
