The Presidential Compressed Natural Gas Initiative (PCNGi) has announced that more than $200 million has been invested in the Compressed Natural Gas (CNG) value chain.
Michael Oluwagbemi, Project Director and CEO of PCNGi noted that the initiative has successfully converted over 100,000 vehicles from petrol to CNG.
In a statement released on Wednesday, Oluwagbemi also highlighted the establishment of 140 conversion centres across the country.
Oluwagbemi highlighted the program’s achievements noting that thousands of new jobs and economic opportunities are opening up along the line
“To date, over 100,000 vehicles have been converted from petrol to CNG/bi-fuel-powered, and more conversion centres are being established across the country. In addition, investors are ramping up the development and deployment of CNG infrastructure, with over $200 million already invested across the value chain. Thousands of new jobs and economic opportunities are opening up along the line,” he said
The PCNGi responded to what it called a “toxic debate” against the initiative in the media, emphasizing the importance of CNG in Nigeria’s energy security and the financial savings it could bring.
Oluwagbemi explained that the shift from petrol to CNG could save the nation approximately $3 billion annually while contributing an additional $2 billion in revenue over the next three to four years.
“It is surprising how the choice of petrol, for which Nigeria spends about $10 billion annually on subsidy, and CNG which has the potential to save the nation $3 billion while adding $2 billion in revenue to the national purse, is an issue of toxic debate,” he stated.
“We see this as an opportunity rather than a challenge, and we are already deepening the development of CNG infrastructure with our partners. However, the number of conversion centres has risen from seven in 2023 to more than 140 across the country.
More than 2,000 Nigerians have been employed in these conversion centres, with more jobs in the offing as CNG penetration ratchets up. In the past year, the private sector invested over 2 billion naira to establish these conversion centres, and another 6 to 10 billion naira will go into setting up more centres to meet the targeted 1,000 centres required to transform the nation’s energy dynamics,” Oluwagbemi stated.
Oluwagbemi emphasized that CNG is not only an economically viable alternative but also a safer and cleaner fuel choice.
“It is lighter and eight times less explosive than diesel and eighteen times less explosive than petrol. It is also more readily available and a more sustainable alternative for Nigeria’s energy security,” he said.
The PCNGi also highlighted that with one million vehicles running on CNG, the overall demand would be just 2.75% of Nigeria’s current daily gas production, a significant but manageable figure.
“CNG distribution is also picking up with 75 new daughter stations under construction across the country, and additional containerized and mobile refuelling units are being set up by the private sector working closely with regulators,” he added.