The Infrastructure Bank Facilitates CNG Mass Transit to Mitigate Impact of Fuel Subsidy Removal

In a significant move aimed at fostering collaborative efforts towards advancing sustainable Infrastructure development, The Infrastructure Bank (TIB) Plc recently paid a courtesy visit to the Ministry of Finance to discuss key areas of collaboration between the Ministry and
The Infrastructure Bank. The team, headed by Andrew Nweke, a director in the organisation was received by Dr. Okokon Udo Ekanem, the Permanent Secretary, of Special Projects. Mr Andrew Nweke spoke about TIB’s commitment to supporting the Federal Government in mitigating the effects of fuel subsidy removal through the promotion of Compressed Natural Gas (CNG) Mass Transit. According to him, the Bank had dedicated funds towards financing CNG Mass Transit.

TIB’s proactive stance in this endeavour aligns with its broader mission of fostering sustainable infrastructure development in Nigeria. The Ag. Managing Director Mrs. Nkiru Chime highlighted some of TIB’s achievements in the transport sector through the Move Nigeria Scheme (MNS), In her words, the bank has played a pivotal role in facilitating economic progress and since the inception of the MNS, has disbursed about N47 billion, resulting in the distribution of over 4,500 vehicles across all geopolitical zones. The scheme has created over 10,000 employment opportunities consequently and has contributed to the GDP through the transport sector which contributes 1.35% of GDP
in Quarter 2 2023.

The Move Nigeria Scheme (MNS) has become synonymous with TIB’s commitment to transforming the nation’s transportation landscape. By facilitating access to financing and resources, MNS has empowered numerous entrepreneurs and businesses to acquire vehicles, thereby stimulating economic activities across various sectors.

The decision to allocate funds for the promotion of CNG Mass Transit underscores TIB’s responsiveness to the evolving energy landscape and its dedication to environmentally friendly and cost-effective transportation solutions. Compressed Natural Gas (CNG) has emerged as a cleaner and more sustainable alternative to conventional fuels, offering significant economic and environmental benefits.
Dr. Okokon Udo, the Permanent Secretary Special Duties of the Federal Ministry of Finance, has expressed unwavering support for TIB’s initiatives in infrastructure development. He affirmed the ministry’s commitment to collaborating closely with TIB to advance the growth and enhancement of critical infrastructure across Nigeria.

The infusion of funds into CNG Mass Transit initiatives is poised to have a far-reaching impact on the nation’s transportation sector. It will not only reduce the country’s dependence on costly fuel subsidies but will also contribute to cleaner air and more sustainable energy practices.

As TIB continues to drive initiatives that promote sustainable infrastructure development, its partnership with the Federal Government and other stakeholders remains pivotal in shaping the future of Nigeria’s infrastructure landscape. The bank’s dedication to innovation, coupled with its commitment to addressing the challenges posed by fuel subsidy removal, positions it as a key player in advancing the nation’s economic prosperity and environmental sustainability.