BUSINESS NIGERIA

Nigeria Wallstreet Journal

Nigerian Customs Vehicles to Be Converted to Compressed Natural Gas in Major Government Initiative

The Federal Government has entrusted Cedric Masters Group, an automotive company, with the task of converting 200 operational vehicles of the Nigerian Customs Service to run on Compressed Natural Gas (CNG) within a span of 90 days.

Our correspondent, visiting the conversion plant located in Lekki, Lagos, noted the presence of numerous customs vehicles awaiting modification. This development aligns with the broader vision of the Director General of the National Automotive Design and Development Council (NADDC), Oluwemimo Osanipin, who is vigorously advocating for the transformation of Nigeria’s automotive industry from Semi Knocked Down (SKD) to Completely Knocked Down (CKD) manufacturing.

The transition signifies a shift from merely assembling imported parts to full-scale manufacturing and assembly within the country, marking a significant step in the sector’s evolution. During a recent four-day working visit to 12 automotive assembly plants in Lagos, Osanipin urged local vehicle assemblers to embrace the CKD approach.

Anselm Ilekuba, CEO of Cedric Masters, highlighted the government’s commitment to this industrial evolution and the CNG initiative. “CNG is the new normal, and we must thank Mr President for his foresight. This development is beneficial for Nigeria, and we are fortunate to be among the pioneers seizing this opportunity,” Ilekuba said.

He noted the company’s strategic investment in expanding the CNG distribution network, which includes acquiring land for a CNG piping project in collaboration with Chevron, aimed at reducing energy costs for electricity generation.

Ilekuba detailed the firm’s readiness to meet the government’s ambitious 90-day deadline for vehicle conversion. “We are fully prepared and have already begun transferring expertise in CNG technology to our local workforce, with training sessions conducted by professionals from Texas,” he added.

Osanipin, satisfied with the progress at Cedric Masters and other plants, emphasised the economic and employment benefits of transitioning to CKD. He acknowledged the challenges ahead but praised the automotive industry’s willingness to adapt and innovate.

“The move from SKD to CKD will significantly increase local content and generate more employment, positively impacting the economy. Our assemblers are committed to this new direction, despite the inherent challenges,” Osanipin stated.

He further noted the importance of developing the necessary infrastructure and training to support this industrial shift. “Many of our assemblers are already converting vehicles from petrol to CNG, and this rapid progress is promising for the future,” he said.

The NADDC’s efforts, supported by government policies and industry stakeholders, aim to bolster Nigeria’s automotive sector, making it a hub for vehicle manufacturing and sustainable energy solutions.

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