The Nigerian Railway Corporation (NRC) and the Presidential Initiative on Compressed Natural Gas (Pi-CNG) have signed a Memorandum of Understanding (MoU) to deepen the penetration of Compressed Natural Gas (CNG) to ease transportation. The ceremony, which took place at the Mobolaji Johnson Mega Station at Yaba, marks a critical leap towards a sustainable future for the railway industry.
The Managing Director of NRC, Dr. Kayode Opeifa, described the partnership as a significant step towards a cleaner, more efficient rail transportation system. He noted that the rail, which is the safest and most cost-effective means of transporting goods and passengers with the least carbon footprint, relies on traditional fossil fuel, and it is time to explore alternative options that benefit both operations and the environment.
“The collaboration will save the corporation between N50 million to N100 million monthly, translating to N1.2 billion yearly, which can be deployed to other areas of need for the corporation,” Opeifa said. The NRC MD explained that the CNG will help cut down on maintenance costs by between 60-70%, contribute to improved air quality, and reduce dependence on petrol and diesel, apart from stimulating economic growth by creating jobs and providing significant savings for the railway industry.
The partnership will focus on four key areas: conversion of existing diesel locomotives, and especially all diesel generators and operational vehicles across all its offices to training of students at the Corporation’s training centers as conversion technicians. Other areas of collaboration include facilitating the distribution of transportation of CNG-Powered tricycles and conversion kits across the country, and the deployment of CNG buses for last-mile shuttle services, thereby enhancing intermodal mobility and efficiency at the rail stations.
The Programme Director of the Pi-CNG, Engr. Michael Oluwagbemi, said the count of CNG-propelled vehicles has moved from less than 50,000 last year to over 100,000. He expressed optimism that the Programme hopes to convert no fewer than 250,000 and achieve the Presidential mandate of conversion of one million commercial buses to CNG by 2026.
Oluwagbemi said the Pi-CNG has attracted over $500 million investment in the establishment of Mother and Daughter stations as platforms for ensuring CNG penetration, apart from creating 25,000 direct employment in the CNG ecosystem. He added that the Pi-CNG would love to establish daughter stations for the NRC at Ebute Metta and Abuja, to enable the use of gas either to power the locomotives or to provide gas to power rail operations.
The Managing Director of the Lagos Metropolitan Area Transport Authority (LAMATA), Engr Abimbola Akinajo, commended President Bola Ahmed Tinubu for removing the subsidy on fuel and diving straight for CNG. She said, “We are excited at LAMATA by that pronouncement by Mr. President. We have been waiting for this because it gave us the necessary backing.” She added that LAMATA would continue to partner with Pi-CNG in its initiatives aimed at promoting cleaner and environmentally friendly energy for transportation in the country.