The Lagos State Government has introduced a N150bn Compressed Natural Gas Trucks Scheme aimed at supporting truck operators with structured financing to acquire brand-new CNG-powered trucks. The initiative, designed as a Public-Private Partnership, was officially launched on Wednesday during a stakeholders’ engagement with maritime and logistics practitioners.
Governor Babajide Sanwo-Olu, represented at the event by his Special Adviser on Transportation, Sola Giwa, said the scheme was created to address growing concerns about the condition of trucks operating across the state’s major logistics corridors. He explained that many of the vehicles currently in use have gone beyond their operational lifespan and now pose serious safety risks.
“One of the most pressing concerns raised over the years is the prevalence of ageing, poorly maintained, and sometimes unsafe trucks plying our major logistics corridors. Many of these trucks have exceeded their operational lifespan. Some have compromised braking systems, weakened frames, damaged tyres, and faulty lighting. They pose a danger to operators, other road users, and the goods being transported,” he said.
The state government has in recent months intensified its clampdown on rickety trucks and vehicles, noting that such ageing assets contribute significantly to road crashes across Lagos.
Speaking on the funding structure, the Regional Manager of United Bank for Africa, Ernest Omorege, explained that the N150bn investment was structured to be disbursed in three phases. He confirmed that the first tranche has already been released.
“We are working with the government and with you, stakeholders sitting here today. The N150bn financing will be released in three tranches. We already released the first tranche, the reason for which we celebrate here today. The second will also be released, and the same for the last tranche.”
Giwa noted that Lagos cannot achieve its goal of becoming a competitive logistics hub while relying on outdated heavy-duty vehicles. He stated that the government is committed to supporting operators through affordable and accessible funding. “We must move away from the era in which heavy-duty transportation is conducted with rickety assets. Our government has therefore initiated a programme that will support truck owners to acquire brand-new vehicles through affordable and well-structured credit facilities.”
He added that the state is collaborating with financial institutions and development partners to develop flexible loan products that will make fleet renewal achievable for truck owners at different levels.
The programme is expected to help operators modernise their fleets, reduce the frequency of highway breakdowns, improve turnaround time, and align their operations with international haulage standards.
Giwa also highlighted the importance of cooperation within the maritime and logistics ecosystem, stressing that progress relies on shared responsibility between government and industry stakeholders. He announced that Lagos will continue to expand digital systems for logistics management, especially around the Lekki corridor. “The sector does not thrive through government efforts alone. It thrives through collaboration between the public and private sectors, between regulators and operators, between unions and enforcement agencies, and ultimately between truck owners and the truckers who operate these vehicles daily.
“The electronic call-up system on the Lekki corridor will continue to evolve with improved transparency and accountability. The intention is to eliminate disorder, lower operational costs, reduce journey times, and build a predictable flow for goods,” he said.
Earlier at the event, the Commissioner for Transport, Oluwaseun Osiyemi, announced that the new programme will provide 2,000 CNG-powered trucks to operators across Lagos. He described the launch as a major milestone in repositioning the logistics sector for improved safety, sustainability, and environmental responsibility. “It gives me great pleasure to extend my goodwill and appreciation to all distinguished stakeholders, industry leaders, unions, regulatory agencies, and partners present at this maiden Stakeholders’ Engagement with Maritime and Logistics Practitioners,” he said.
Osiyemi noted that the initiative reflects a commitment to creating a cleaner and more efficient logistics ecosystem. He highlighted additional government efforts, including free eye screening for truck operators, sensitisation on substance abuse, and drug testing programmes, all aimed at reducing avoidable accidents. “Our intentional investment in free eye screening for truck operators, substance abuse sensitisation, and drug testing initiatives reflects the government’s firm stance on protecting lives, improving truck operator welfare, and reducing avoidable road accidents,” he said.
Announcing the rollout of the CNG-powered trucks, he added that the initiative strongly supports Lagos State’s wider sustainability agenda. “The facilitation of access to 2,000 CNG-powered trucks through our strategic partnership with the bank is a bold step toward a greener future. It underscores our dedication to sustainability, environmental responsibility, and modernizing freight movement across Lagos.”
