The Presidential Initiative on Compressed Natural Gas (PiCNG) and Electric Vehicles (EVs) has disclosed that it has attracted more than $2 billion in private sector investments into Nigeria’s compressed natural gas (CNG) subsector within two years.
Executive Chairman/CEO of PiCNG, Mr. Ismaeel Ahmed, disclosed this on Friday in Abuja during the unveiling of new CNG products by Alfa Design Nigeria Limited.
The products showcased included CNG conversion kits by Mijo AutoGas, CNG cylinders by EKC International, a CNG Mother Station by CIMC ENRIC, and an Optical Gas Imaging Camera by Opgal Optronics.
Ahmed, represented by Mr. Zayyanu Tambari, Chief Compliance Officer of PiCNG, said: “As of 2023, when this programme started, the CNG sector was virtually non-existent. It was not really attracting any serious investment from any quarters. Today, as I speak, we have attracted over $1.8 billion in investments. We have rounded up to $2 billion of private sector investment in the CNG subsector in just two years.”
Ahmed emphasized that the initiative is aiming for $5 billion in investments by 2027, describing the figure as a modest target given the growing interest from the private sector.
“I believe by 2027, we should be looking at double-digit investment numbers in the CNG sector, looking at the interest that the private sector is showing in the CNG ecosystem. Then jobs created,” he said.
He said the PiCNG initiative has already generated over 80,000 direct jobs, with indirect jobs estimated at a ratio of one to four.
By 2027, the programme targets 300,000 direct jobs.
“We are already at 80,000 direct jobs. Again, we are reasonably confident we will meet and exceed this target,” Ahmed stated.
Ahmed recalled that President Bola Tinubu launched the CNG programme in 2023 as a critical component of Nigeria’s energy mix.
At the time, there were only seven conversion centres nationwide.
“Today, we are looking at 369, and the number is growing almost on a daily basis. The target for 2027 is 3,000 conversion centres. But if you look at what we have achieved, and then we are now growing in geometric and hopefully in exponential progression, by 2027 we will exceed this number,” he said.
On refuelling stations, Ahmed noted that in 2023, Nigeria had only 20 CNG refuelling facilities. Currently, there are over 68 licensed stations and more than 150 under construction.
“The target for 2027 is around 2,000 to 2,500 retail outlets,” he explained.
Last month, Vice-President Kashim Shettima called on automotive manufacturers in Nigeria to significantly expand their production capacity for Compressed Natural Gas (CNG) and electric vehicles to meet the country’s accelerating demand for cleaner, affordable mobility.