The Nigerian Railway Corporation (NRC) and the Presidential Compressed Natural Gas Initiative (PCNGI) are collaborating to stimulate economic growth and reduce carbon footprint in the railway industry.
The collaboration is focused on diesel retrofit programme, distribution of strategic PiCNG materials and equipment, intermodal shuttle service, and retrofit training programmes.
The NRC and Pi-CNG signed a memorandum of understanding on Friday in Lagos to seal the collaboration.
At the event, the Managing Director of NRC, Dr Kayode Opeifa, said that Compressed Natural Gas (CNG) was crucial for the railway industry in Nigeria.
Opeifa said that CNG offered benefits such as reduced maintenance costs by 60 per cent to 70 per cent.
He added that the environmental benefits of CNG were not limited to its being a cleaner fuel.
Opeifa said that it also promoted and contributed to a more sustainable environment and improved air quality.
He added that the use of CNG would ensure energy security as well as stimulate economic growth by creating jobs and attracting investments in infrastructure and technology.
“Today, we are taking another critical step towards a sustainable future for our railway industry. This partnership marks a significant step towards a cleaner and more efficient rail transportation system in Nigeria.
“The rail sub-sector (the safest and cost-effective means of transporting goods and passengers, with the least carbon footprint) has long relied on traditional fuels. It is time for us to explore options that benefit both our operations and the environment.
“Today, we strive to further reduce our carbon footprint by converting our locomotives and other diesel-powered equipment to CNG,” he said.
Opeifa said the NRC training centre at Tejuosho would be turned into a CNG conversion centre, adding that CNG conversion would be part of the centre’s curriculum.
Mr Michael Oluwagbemi, Programme Director, PCNGI, said the cooperation with NRC would enable PCNGI to lean on NRC’s expertise in diesel engineering technology, which powered its Diesel Multiple Unit systems.
Oluwagbemi added that the NRC had the most advanced experience that could help to transform the haulage sector, as PiCNG would move more trucks toward CNG across Nigeria.
“This will not only impact the cost of transporting goods and services across our country, including food and energy, but also impact on security and mass transportation.
“We are expecting an influx of buses, tricycles and kits from the Ministry of Finance as we move to phase two, where we will be scaling our impact to 250,000 vehicles from the current 50,000 level,” he said.
He said that the historic event marked a new chapter in Nigeria’s journey toward a cleaner, more efficient and sustainable transport future.
“This is in line with the vision of President Bola Tinubu that Nigeria should drive its economy and industrialisation with cheaper fuel represented by gas, which is abundant across our country.
“A renewed hope for our citizenry is possible, and PCNGI is delivering on the President’s promise,” he said.
He commended the leadership of NRC for a shared vision and willingness to pioneer the transition alongside PCNGI.
“We are confident that this model will inspire other stakeholders across the public and private sectors. Collaboration is key if we are to succeed, and what we are doing represents the best,” he said.
The Managing Director, Lagos Metropolitan Area Transport Authority (LAMATA), Dr Abimbola Akinajo, said that LAMATA believed in the CNG initiative of Tinubu.
“We are excited by the pronouncement of Mr President because we know that something good is coming up for the transport industry.
“Transportation drives the economy. The sooner we get it right, the better for Nigeria,” she said.
