FERMA converts operational vehicles to CNG

The Federal Roads Maintenance Agency (FERMA) has begun converting its operational vehicles to run on compressed natural gas (CNG).

This makes FERMA the first federal government’s agency to undertake such a conversion in line with the government’s drive to reduce the cost of governance. 

FERMA’s Managing Director, Emeka Agbasi, disclosed this during a signing ceremony of a memorandum of understanding (MOU) between FERMA and the Presidential Compressed Natural Gas Initiative. 

The event was attended by the Programme Director of the initiative, Michael Oluwagbemi. 

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Agbasi highlighted that the high costs of premium motor spirit (PMS) and diesel have significantly contributed to FERMA’s recurrent expenditure due to its fleet of vehicles spread across the country.

He noted that the CNG conversion initiative is expected to reduce the agency’s fuel costs by 40 to 70 per cent. 

Agbasi said the MOU between FERMA and the Presidential Compressed Natural Gas Initiative will initially last for four years, with an option for renewal for another four years. 

Michael Oluwagbemi said the initiative would convert all commercial vehicles owned by road transport unions free of charge, while providing a 50 per cent subsidy for ride-hailing companies to convert their vehicles to CNG.