Kano State Investment Promotion Agency, KANINVEST, has signed a Memorandum of Understanding, MoU, with STATA Power Utility Nigeria Limited on implementation of customized gas programme in the state.
Speaking at the signing of the MoU at KANINVEST headquarters in Kano, on Friday, the Director General of the agency, Muhammad Nazir Halliru said the deal, worth $5 million, was a significant milestone towards creating a more conducive environment by reducing greenhouse gas emissions, keeping a healthier and clean environment and creating job opportunities.
According to him, the programme, if implemented, would entail the supply of Compressed Natural Gas, CNG, and conversion of vehicles from using petroleum gas.
Mr Halliru explained that the effort was to address the challenges of petroleum prices and transportation in the commercial state.
“This reflects the vision of this administration in terms of creating a more conducive environment by reducing greenhouse gas emissions, keeping a healthier and clean environment, and creating job opportunities.
“The supply of the gas will go beyond only the vehicles but also supplying to industries and major companies that are using CNG or can opt to use it in order to improve their production and their services,” he said.
The DG disclosed that the implementation of the partnership would be in about six months time after the company set up the gas stations in the state.
“So we’ve just secured the approval of His Excellency, the Executive Governor for this huge investment. We hope the implementation will be in the next coming months, perhaps six months or so by the time they are able to establish their factories to establish the company and the location, location which has already been approved for them.
“They are also going to have additional incentives in terms of tax waivers as a Pioneer investment,” he explained.
The Chief Executive Officer of the company, Salman Dantata, expressed delight over the “groundbreaking” MoU signing, which, according to him, would help in bringing down the cost of transportation and boost industrialization in Kano.
“This initiative is in line with global trends toward cleaner energy, economic development, and environmental sustainability.
“By transitioning from traditional fuel sources to compressed natural gas, CNG, for automobiles, this program seeks to reduce the transportation costs, improve air quality, reduce carbon emissions, and enhance energy efficiency across Kano State,” he said.
Mr Dantata explained that the investment could be up to $15 million by STATA over the next 2 years for deployment of the LCNG stations across the state.
According to him, the firm is intended to invest in conversion kits and set up the conversion centre within the stations.
He said that in the next one year, the company would commence provision of 5000 solar-powered tricycles and 10 motor vehicles for commercial purposes in the state.
Mr Dantata explained that the mother has station would be sited at Tamburawa area in Kura Local Government area of the state with a capacity of 110 metric tons a day.
The sister gas stations, with 2 metric tons capacity each, according to Mr Dantata, would be situated at, Dalladi Nasidi, Maiduguri Road, IBB Road, Shagari Quaters, Cotton Gingery, Sharada and Bechi quarters.
He disclosed that the firm would plan to expand to 20 stations within 5 years, adding that the project would create over 300 direct and 5000 indirect jobs to teeming youths in the second most populous state in the country.
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