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Fuel Subsidy Removal: FG Unveils CNG – powered Keke NAPEP to reduce cost of transportation
As part of an effort to cushion the excruciating impact of the fuel subsidy removal on Nigerians, the Federal Government has launched the Compressed Natural Gas (CNG) ‘Keke NAPEP’ to cut down the high cost of transportation.
The National Orientation Agency (NOA) in collaboration with the SIMBA Group of Companies (Nigeria), and the ECOMEAD ACRES, launched the CNG Keke on Friday in Abuja.
Addressing journalists during the unveiling, the Director-General of NOA, Lanre Issa-Onilu, noted that the aim is to consume far less fuel compared to the existing tricycles that use petrol, as such will cut down the cost of transportation to the barest minimum.
He said that the project is focused on touching the lives of the ordinary Nigerians especially those living in the rural areas, and in consonant with Mr President’s renewed hope agenda.
He noted that the federal government has established about 10,000 CNG stations across the country to ensure the availability of the compressed natural gas to the users of the newly launched tricycles.
He assured Nigerians that the CNG Keke NAPEP will drastically reduce the high cost of transportation and other similar challenges currently experienced by Nigerians.
He also revealed that the CNG is environment friendly and will reduce the pollution caused by the use of petrol, and by extension address the challenge of climate change.
Issa-Onilu said: “This press conference is to address the very important issue of transportation, as a fallout of the removal of fuel subsidy. It is the policy of the government to provide immediate succor in terms of palliative.
“The President in his address to the nation several times reiterated the fact that a lot of interventions are on foot regarding how to reduce the impact the subsidy removal has had on all of us.
“And also, the issue of reducing our dependence on petroleum products as the only means of powering our automobiles was paramount in his address, and that has been at the forefront of the policy that the government is pursuing at the immediate.
“Related to that is the introduction of the Compressed Natural Gas (CNG) as an alternative source to power our automobiles. You also recall that the federal government as we speak is accelerating the process of bringing CNG powered buses to the country. And apart from that about 10,000 CNG filling stations across the country are put in place, so that we can have CNG as an alternative source of powering our automobiles.
“We all know the role that Keke NAPEP has come to play as a means of transportation in this country, especially for those who live in rural areas. Millions of Nigerians on a daily basis commute using the Keke NAPEP. So, it is a thing of joy that we are having this as an immediate solution, by having a local assembly for Keke NAPEP powered by CNG.
“We have here today the company that is already thinking ahead in line with government policy of providing this arrangement which is the CNG powered Keke-NAPEP. As an Agency, we have our operations and structures nationwide at all the 774 local governments.”
On the impact of the CNG on Nigerians, the NOA DG said it will drastically reduce the cost of fuelling the automobiles, reduce cost of transportation, reduce the impact of fuel on the environment, and tackle the issue of foreign exchange, among other benefits.
In his remarks, the CEO of ECOMEAD ACRES, Kayode Oyin-Zubair, said the CNG Keke-NAPEP is configured to use both petrol and CNG, adding that it is environmentally friendly.
Oyin-Zubair assured that the CNG powered tricycle will ameliorate the impact of the fuel subsidy removal on the cost of transportation for the benefit of all Nigerians.
“The CNG is environmentally friendly, and it will ameliorate the problems of Nigerians. We have put in. place mechanism to get them to the 774 LGAs across the country,” he said.
He stressed that the CNG powered Keke-NAPEP is one product that will bring relief to Nigerians in terms of the challenges they face regarding the high cost of transportation.
Representative of the Wandel International Nigeria/ Simba Group of Companies (Nigeria), Sharma Shamrat, said the CNG powered automobiles are the best option for Nigeria.
Shamrat said: “Let’s say in Nigeria CNG looks new, but CNG is a certified product which has been used all over India. Now, let’s say when I talk about India, we’re talking about 1.5 billion people. The population itself is so huge that it needs alternative transport.
“Now, if a country that big continues to put petrol and diesel in their vehicles, how much of the damage will be caused to the planet. Mother Nature is not going to hold for too long before it is too late, we need to make the change. Here in Nigeria, CNG seems to be the option.
“In the urban area where we have a lot of good roads we might be having a lot of filling stations for CNG, but that doesn’t mean that we will leave the rural population behind. So our vehicle comes with the option that you can switch between petrol and CNG.”
Nigerian carrier, Air Peace, has clarified why its Benin to Abuja flight P47171 was delayed in the air on Friday.
In a statement issued by the Head of Corporate Communications, Ejike Ndiulo, Air Peace Airline on Saturday stated that during the aircraft’s descent into Abuja, the flight encountered turbulence as a result of adverse weather conditions, including thunderstorms.
The statement further stressed that in line with global aviation safety standards, “our crew activated appropriate safety protocols and held in a holding pattern until weather conditions improved.”
Social media users complained on Saturday that the aircraft hung in the air longer than necessary before landing.
Elanza news understands that when an aircraft is held in a holding pattern, this means the plane was instructed to fly a specific course around a designated point while waiting for permission from the control tower to proceed with its planned route, approach, or landing.
This is often due to factors like traffic congestion at the given airport, weather delays, or other operational issues that could result in an incident or accident if the aircraft had landed against instructions.
In simpler terms, a holding pattern is a temporary waiting area for an aircraft in the air, allowing it to remain airborne while awaiting further instructions for landing.
The statement further stated, “We are pleased to confirm that the aircraft landed safely and the passengers disembarked normally. Air Peace is unwavering in its commitment to ensuring the highest standards of safety across all our operations.”
IMF to FG: Enhance transparency in oil sector, contain borrowing
The International Monetary Fund (IMF) has advised Nigeria to enhance transparency in the oil sector to ensure that the subsidy removal savings are transferred to the government’s budget.
Abebe Selassie, the director of the African department at the IMF, gave the advice on Friday while presenting the findings of the Regional Economic Outlook for Sub-Saharan Africa report at the IMF and World Bank spring meetings in Washington, DC, the United States.
Selassie was responding to questions on the federal government’s reforms and Nigeria’s debt profile, which currently sits at N142.3 trillion as at September 2024.
Speaking to journalists, the director said the fund has been very impressed by the reforms Nigeria has undertaken to address microeconomic imbalances in the country.
The director said the subsidy was taking “a very large” share of the limited tax revenues, which was not effectively used to help the most vulnerable people.
“So it’s been really good to see the government taking these head on, and also beginning to roll out the third component of the reforms that we’ve been advocating for, [that] government has been pursuing, which is to expand social protection to target generalised subsidies to help the most vulnerable,” he said.
“This has all been very good to see, but more can be done, particularly on the latter front: expanding social protection and also enhancing a lot more transparency in the oil sector, so that the removal of subsidies does translate into flow of revenue into government budget.
“So, there’s still a bit more work to do in these areas.”
Selassie disclosed that the IMF had a mission in Nigeria, where discussions with the authorities focused on issues related to the nation’s macroeconomic conditions.
Still, the director advised the federal government to consider reforms in other areas to engender more private sector investment, and also how more resources can be “adopted” to help Nigeria generate the revenues needed to build more schools, universities, and infrastructure.
“So there’s a comprehensive set of reforms that Nigeria can pursue that would help engender more growth and help diversify the economy away from reliance on oil,”
“And this diversification is all the more important given what we’re seeing happening to commodity prices.”
Selassie acknowledged that while the government is undertaking reforms, there will be a financing need.
He urged the authorities to adopt “a judicious and agile” way of dealing with the financing challenges the country faces.
The IMF official said Nigeria’s financing gap “can only be filled” by permanent sources such as revenue mobilisation in the long run.
“But in the interim, carefully looking at all of the options the country has to borrow in a contained way, will be part of that solution,” he said.
“And I think the government has been going about this prudently and cautiously so far, and we’re encouraged by that.”
In January, the Debt Management Office(DMO) said the total domestic debt was N73.4 trillion ($45.8 billion) while the total external debt was N68.8 trillion ($43 billion).
The debt body said the increase was primarily due to rising domestic borrowing and the impact of exchange rate depreciation on external debt when converted to naira terms.
The Federal Government is set to launch the National Agribusiness Policy Mechanism (NAPM) to strengthen agricultural productivity, stabilise food prices, and drive economic growth.
The NAPM is part of broader initiatives aimed at transforming the country’s agricultural sector through data-driven policies and public-private partnerships.
Speaking on Friday in Abuja during a meeting of the Presidential Food Systems Coordinating Unit (PFSCU) Steering Committee at the Presidential Villa, Abuja, Vice President Kashim Shettima said the initiative will align agricultural efforts across all government tiers through real-time data analytics.
“The Green Imperative Project (GIP) is an idea whose time has come. It has been in the incubation period for several years, and now it is coming to fruition; we have to get it right.
“We have had many interventions in this country in the past. We must make this work, and it’s the states that will drive the process,” the Vice President said.
Signed between Nigeria and Brazil on March 17, 2025, the Green Imperative Project (GIP) is a $1.1 billion initiative aimed to modernise 774 mid-sized Nigerian farms with Brazilian agricultural technologies, creating jobs and boosting productivity across the nation.
VP Shettima further said President Bola Tinubu has approved ₦15 billion for the National Emergency Management Agency (NEMA) to prepare for floods as the rainy season kicks in.
“This is one of the first proactive decisions by the government to prepare for the flooding season,” the Vice President noted.
Earlier, the Technical Assistant to the President on Agriculture and Executive Secretary of PFSCU, Marion Moon, explained that NAPM aims to address challenges of high food inflation and agricultural yields that lag 60 per cent behind global averages.
She revealed that the pilot survey for NAPM has been completed across 13 states, with a full launch planned for June 2025.
The NAPM, supported by data analytics partnerships and a digital platform under development, is designed to tackle food inflation, inefficient subsidies, and outdated farming practices, to give the country a unified framework to optimise public spending and drive sustainable rural development.
Those present at the meeting included Governors of Jigawa State, Umar Namadi, and Ekiti State, Biodun Oyebanji; Deputy Governors of Borno State, Umar Kadafur, and Ebonyi State, Patricia Onyemaechi Obila.
Others are Minister of Agriculture and Food Security, Senator Abubakar Kyari; Minister of State for Agriculture and Food Security, Aliyu Abdullahi; Permanent Secretary of the Federal Ministry of Finance; heads of agriculture and manufacturing private sector players, and international development partners.