Federal Government Allocates N100 Billion for High-Capacity CNG Buses as Part of Subsidy Removal Agreement

In a significant move aimed at addressing the challenges posed by petrol subsidy removal, the Federal Government has given the green light for the allocation of a substantial sum of N100 billion to support the expansion of high-capacity CNG (Compressed Natural Gas) buses, enhancing the transportation sector.

This groundbreaking initiative was unveiled during a recent meeting between government officials and representatives from the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC), as part of a broader effort to ease the transition away from petrol subsidies.

The comprehensive transportation plan, which was disclosed last night, also encompasses the distribution of 55,000 CNG conversion kits to kickstart an autogas conversion program. This move will pave the way for the ongoing construction of advanced CNG stations across the nation.

The Federal Government intends to roll out this plan within the next month, initiating pilot programs across ten campuses nationwide. These agreements were reached during a rescheduled meeting held at the State House in Abuja, with key figures signing a Memorandum of Understanding (MoU).

Signatories to the MoU included the Minister of Labour and Employment, Simon Bako Lalong; Minister of State for Labour and Employment, Mrs. Nkeiruka Onyejeocha; and Minister of Information and National Orientation, Mallam Mohammed Idris. Representing the labor unions were NLC President Joe Ajaero, TUC President Festus Osifo, NLC General Secretary Emmanuel Ugboaja, and TUC counterpart Nuhu A. Toro.

The statement released following the agreement reads:

"The Federal Government has committed N100 billion for the provision of high-capacity CNG buses to support mass transit in Nigeria. Furthermore, provisions are being made for an initial 55,000 CNG conversion kits to kickstart an auto gas conversion program, while state-of-the-art CNG stations are under construction nationwide. Implementation is expected to commence by November, with pilot programs launching across ten campuses nationwide."

As a result of these developments, the labor unions have agreed to suspend the planned indefinite strike for a period of 30 days, which was initially scheduled to begin today.

Furthermore, both parties have concurred on extending the implementation of the N35,000 provisional wage increment for all federal workers until a new minimum wage is established. Additionally, the Value Added Tax (VAT) on diesel will be suspended for six months starting in October.

Moreover, the Federal Government has made commitments to address leadership issues within the National Union of Road Transport Workers (NURTW) and the reported ban on the Road Transport Employers' Association of Nigeria (RTEAN). They are dedicated to managing labor matters by relevant International Labour Organization (ILO) conventions and Nigerian labor laws. Additionally, measures for tax waivers will be implemented as a short-term stimulus for economic growth in both the private and public sectors.

"The Federal Government plans to introduce various tax incentive measures for the private sector and the general public. Regarding the leadership crises within the NURTW and the purported proscription of RTEAN, the Federal Government is committed to resolving labor matters in line with relevant ILO Conventions and Nigerian Labor Acts. A resolution to the ongoing impasse is expected by or before October 13," the statement highlights.

Following a six-hour meeting with the Federal Government and extensive consultations with various stakeholders, the labor unions have decided to suspend the planned nationwide strike. However, Joe Ajaero emphasized that if the agreements are not implemented within the specified timeframe, the strike issue will be revisited.