Adamant

The Trade Union Congress (TUC) has given the federal government a two-week ultimatum to reach a negotiation agreement, threatening workers’…

The Trade Union Congress (TUC) has given the federal government a two-week ultimatum to reach a negotiation agreement, threatening workers’ protests if nothing tangible is concluded by 19th August. The National Economic Council (NEC), chaired by Vice President Kashim Shettima, endorsed a proposal to introduce Compressed Natural Gas (CNG) vehicles for public transportation in all states. The federal government aims to vigorously pursue the mass deployment of CNG and electric vehicles nationwide, alongside electric buses and charging infrastructure implementation across the country.

The implementation of policies such as the removal of fuel and fx subsidies by the Tinubu government should have been carefully planned, negotiated and explained to gain public buy-in. Unfortunately, the abrupt removal of subsidies has led to discontent among the masses and provided an opportunity for actors with damaging agendas to take advantage of the situation. Just as we saw with the Naira redesign, the way policies are implemented can greatly influence their acceptance and success. Listening to government officials in Nigeria often becomes monotonous, and the recent statements from the NEC meeting are no exception. The government’s plan to introduce electric vehicles (EVs) seems ambitious, but significant challenges need to be addressed. For instance, Lagos State has just two electric vehicles in its fleet, and the infrastructure to support EVs is limited. Vice-President Shettima, being an experienced former banker, should understand the importance of evaluating businesses before investing in them. Instead of rushing into electric vehicles, the government should focus on the more feasible option of deploying compressed natural gas-powered vehicles, which can be sourced and refined more easily in the short term. The cost burden of implementing an electric-powered transport system across the country would be too high for Nigerians. The government would likely have to subsidise most of the operational costs for it to be viable. In contrast, using Compressed Natural Gas is currently four times cheaper. Therefore, the government’s promises about deploying electric vehicles seem unrealistic and would save money. If the executive is serious about electric vehicles, it should encourage and incentivise their importation by those who can afford them. This could lead to a necessary reform of the country’s tax regime for newly-manufactured cars and pave the way for private companies to invest in charging stations and EV infrastructure. The government needs to focus on practical and achievable solutions like CNG-powered vehicles rather than making empty promises about nationwide electric vehicle deployment. Vice-President Shettima’s speech on the matter lacked substance, and a more thoughtful approach is required to address Nigeria’s transportation challenges effectively.