Nigeria Mandates Green Energy for Government Vehicles and Generators

Nigeria's Federal Executive Council has mandated that all new government-procured vehicles, generators, and tricycles must be powered by Compressed Natural Gas (CNG), solar, or electric energy sources. The move aims to reduce reliance on fossil fuels, lower transportation costs, and mitigate inflation.

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Bijay Laxmi
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Nigeria Mandates Green Energy for Government Vehicles and Generators

Nigeria Mandates Green Energy for Government Vehicles and Generators

In a significant move towards energy transition and reducing inflation, Nigeria's Federal Executive Council (FEC) has decided that all new government-procured vehicles, generators, and tricycles must be powered by Compressed Natural Gas (CNG), solar, or electric energy sources, effective immediately. The decision was made on Monday during a marathon FEC meeting chaired by President Bola Tinubu at the State House in Abuja.

Why this matters: This move marks a significant step towards reducing Nigeria's reliance on fossil fuels and mitigating the impact of climate change. As a major economy in Africa, Nigeria's adoption of green energy could set a precedent for other countries on the continent to follow, potentially leading to a broader shift towards sustainable energy sources.

The directive affects all new requests for vehicles and generators from government agencies, including the Nigeria Customs Service, Nigerian Shippers Council, and Federal Capital Territory Administration. Memos seeking the purchase of petrol-dependent vehicles will be rejected, and affected FEC members have been tasked with re-presenting value-driven procurements of CNG-compliant vehicles in subsequent council meetings.

President Tinubu emphasized the importance of the energy transition, stating, "This nation will not progress forward if we continue to dance on the same spot. We have the will to drive the implementation of CNG adoption across the country and we must set the example as public officials in leading the way to that prosperous future that we are working to achieve for our people." The move is part of the Presidential Compressed Natural Gas Initiative (PCNGi), launched in October 2023, which aims to deliver cheaper, safer, and more climate-friendly energy.

The Federal Government has earmarked N100 billion to purchase 5,500 CNG vehicles, buses, and tricycles, as well as 100 electric buses and over 20,000 CNG conversion kits. The initiative plans to roll out about 800 CNG buses, 4,000 CNG tricycles, and 100 electric buses in the first phase over the next few weeks. Finance Minister Olawale Edun highlighted the cost savings, stating, "Whereas it costs about N55,000 to fill a 15-20 seater bus with petrol, it will cost between N12-15,000 to fill a CNG bus of the same capacity. This is a huge savings that will help reduce transport costs and at the same time help reduce inflation."

The government expects the policy to unlock new investments in renewable energy, solar panels, and lithium batteries. It is also anticipated to be climate-friendly and reduce inflation by slashing costs by about 60%. The decision comes three weeks after the Presidency announced plans to roll out 2,700 CNG-powered buses and tricycles before May 29, when President Tinubu marks one year in office.

Nigeria's move towards cleaner energy sources for government vehicles and generators marks a significant step in the country's energy transition efforts. By mandating the use of CNG, solar, and electric power, the Federal Government aims to reduce its reliance on fossil fuels, lower transportation costs, and mitigate the impact of inflation on the economy. As President Tinubu noted, "It starts with us, and in seeing that we are serious, Nigerians will follow our lead."

Key Takeaways

  • Nigeria's Federal Executive Council mandates CNG, solar, or electric power for new government vehicles and generators.
  • The move aims to reduce reliance on fossil fuels, mitigate climate change, and lower transportation costs.
  • N100 billion allocated for 5,500 CNG vehicles, buses, and tricycles, and 100 electric buses.
  • CNG adoption expected to reduce transport costs by 60% and unlock new investments in renewable energy.
  • Government aims to set an example for Nigerians to follow, promoting a shift towards sustainable energy sources.