Innoson lauds FG for removing fuel subsidy, boosting CNG vehicles

The chairman of Innoson Vehicle Manufacturing (IVM), Chief Innocent Chukwuma, has commended the federal government for its decision to remove the fuel subsidy, saying it will pave the way for the adoption of compressed natural gas (CNG) vehicles in Nigeria.

Chukwuma, who spoke to journalists in Nnewi, Anambra State, said the removal of the subsidy will make petrol more expensive and less affordable for many Nigerians, thereby creating a demand for cheaper and cleaner alternatives such as CNG.

He said his company, which is the first and only indigenous automobile manufacturer in Nigeria, has been producing CNG vehicles since 2019 in partnership with the Nigerian National Petroleum Corporation (NNPC) and Access Bank.

He said the CNG vehicles are designed to run on natural gas, which is abundant in Nigeria and costs about 97 naira ($0.21) per litre, compared to petrol, which costs between 350 ($0.76) and 550 naira ($1.18) per litre.

He said the CNG vehicles are also environmentally friendly, as they emit fewer greenhouse gases and air pollutants than gasoline vehicles.

He said his company has a target of delivering one million CNG vehicles by 2027, as part of the federal government’s plan to promote the use of natural gas as an alternative to gasoline.

He said his company has already delivered over 10,000 CNG vehicles to various customers, including government agencies, corporate organisations, and individuals.

He said his company has also established over 50 CNG filling stations across the country in collaboration with NNPC and other stakeholders.

He urged Nigerians to embrace the CNG vehicles, saying they are suitable, durable, and affordable for African roads.

He also appealed to the federal government to provide more incentives and support for local manufacturers of CNG vehicles, such as tax waivers, import duty exemptions, and access to foreign exchange.

He said this will enable them to compete with foreign brands and create more jobs and wealth for Nigerians.