Lanre Shittu Motors Urges Presidential Backing for Indigenous CNG Vehicle Production

The Managing Director of Lanre Shittu Motors, Taiwo Shittu, has made a direct appeal to President Bola Tinubu, urging him to extend robust support to indigenous automotive companies. The call comes as Nigeria seeks to ramp up the production of compressed natural gas (CNG) vehicles as part of a broader strategy to sustain the nation’s CNG campaign.

In a statement released on Tuesday, Shittu emphasized the company’s readiness to flood the market with locally assembled, fully CNG-powered buses. Speaking at a media briefing in Lagos, he outlined the critical need for government intervention to ensure the success of this initiative, particularly in light of the recent fuel subsidy removal and the subsequent launch of the Presidential CNG Initiative in October 2023.

Following the removal of the fuel subsidy in May 2023, President Tinubu introduced the CNG Initiative as a key component of his administration’s efforts to provide a cheaper, safer, and more environmentally friendly alternative to premium motor spirit (PMS). The initiative is seen as a crucial step towards reducing costs, enhancing productivity, and saving Nigeria trillions of naira currently spent on petrol and diesel imports.

Shittu underscored the importance of government support in the form of funding, grants, and tax incentives to bolster companies capable of sustaining the CNG campaign. “We expect the government to support and identify companies with the capacity to sustain the campaign,” Shittu stated, highlighting the urgency of government involvement.

Expressing Lanre Shittu Motors’ full commitment to the CNG initiative, he described it as “the only way to save the country now.” He revealed that the company is set to roll out a new fleet of mass transit buses that are 100 per cent CNG-powered and assembled in Nigeria. “What we are selling is an engine built on CNG,” Shittu noted, touting its superiority over hybrid diesel engines and converted diesel engines, with the potential to “run over a million miles.”

The company has invested heavily in the CNG project, planning to introduce 100 units in the first phase with the support of financial institutions. Shittu also pointed out that 20 per cent of the local content in LSM-branded vehicles includes components such as glass, seats, fabrications, and lubricants.

He emphasized the company’s 43 years of experience in the industry and its readiness to support the CNG initiative with over N2 billion worth of parts. “We have a new facility coming up in Ogun State, where we intend to expand our operations. We are also working at manufacturing batteries,” Shittu added.

Lukman Shittu, the Deputy Managing Director of LSM, echoed his brother’s sentiments, supporting the green energy initiative as a way to reduce carbon emissions from fossil fuels and improve environmental safety. He noted that CNG could offer significant savings in operational costs, with the price of CNG at N200-N230/kg compared to diesel at N1,200-N1,400/litre.

Lukman also disclosed plans to deploy mobile CNG filling stations across Nigeria, further underscoring the company’s commitment to making the CNG initiative a reality. “We are not only concerned about our buses alone; we are also interested in helping the government in any way we can to make this CNG initiative a reality,” he explained, emphasizing the importance of reducing transportation costs in Nigeria.