The Federal Road Maintenance Agency (FERMA) has entered into a memorandum of understanding (MoU) with the Presidential Committee on CNG (PCNGI) to initiate the conversion of operational vehicles to run on compressed natural gas (CNG).

The managing director of FERMA, Mr. Emeka Agbasi, announced this partnership during a meeting with the programme director of the presidential CNG initiative, Mr. Michael Oluwagbemi, where the MoU was formally signed. Mr. Agbasi highlighted that the high costs of premium motor spirit and diesel have significantly impacted the agency’s recurrent expenditures due to its extensive fleet across the nation.

Mr. Oluwagbemi, the programme officer of PCNGI, stated that the initiative plans to convert all commercial vehicles owned by road transport unions free of charge. Additionally, ride-hailing companies will receive a fifty percent subsidy for their vehicle conversions. This move is expected to reduce FERMA’s operational costs by 40-70%.

The MoU spans an initial period of four years and is renewable for another four years, fostering ongoing collaboration between the two agencies.

Mr. Oluwagbemi further explained that the initiative is designed to lower transportation costs as CNG is significantly cheaper, cleaner, and more sustainable than traditional fuels. The Pi-CNG aims to convert over two million cars in partnership with private sector collaborators who have already started the conversion process at various centers nationwide.

As part of the MoU, FERMA will facilitate access to Pi-CNG priority facilities, including identified LNG sites, warehouses, and routes for the virtual pipeline network. They will also lead the identification and prioritization of road maintenance and development needs, particularly in Pi-CNG’s core areas and ensure compliance with regulatory and policy frameworks for CNG and EV projects.