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By Tracy Moses
The Presidential Compressed Natural Gas Initiative (PCNGI) has attracted an $491m in private sector investments, according to Michael Oluwagbemi, Project Director and Chief Executive.
Engr. Oluwagbemi disclosed this during a press briefing at the Presidential Villa in Abuja on Monday.
Oluwagbemi hailed the milestone as a significant step toward revolutionizing Nigeria’s transportation and energy sectors. He highlighted that the initiative has led to the creation of more than 9,000 direct jobs and 75,000 indirect jobs, while also seeing over 30,000 vehicles converted to Compressed Natural Gas (CNG).
“The PCNGI has not only eased the cost of living for Nigerians but also fostered industrial growth, created sustainable employment, and promoted environmental conservation,” Oluwagbemi remarked.
This is just as he credited the $491m investment to strong stakeholder confidence and government-backed incentives.
Launched on October 1, 2023, by President Bola Tinubu, the initiative aims to fast-track the adoption of CNG and Electric Vehicles (EVs) as cleaner, more affordable alternatives to traditional fuels like petrol and diesel.
As part of the Conversion Incentive Programme (CIP), over 200 new vehicle conversion centres have been established, a notable increase from just seven at the program’s start. This move supports the goal of transforming Nigeria’s energy and transport sectors while providing substantial economic benefits.
In August 2024, the new programme was launched with the goal of facilitating 1 million free or subsidized vehicle conversions, specifically targeting public transport vehicles, ride-share operators, and Ministries, Departments, and Agencies (MDAs).
So far, the the CIP, is on track to hit over 10,000 conversions by the end of this quarter. This includes the distribution of 22,000 conversion kits and the training of more than 3,000 new technicians.
Additionally, plans are underway to extend the programme to public servants through a partnership with CreditCorp, which will enable workers to access discounted vehicle conversions.
As part of the initiative, 421 CNG buses and 36 EV buses have been delivered, out of the 655 buses purchased by the Federal Ministry of Finance. These buses are being rolled out in collaboration with the Ministry of Transportation, labor unions (NLC/TUC), and state governments, forming a crucial part of the Renewed Hope Mass Transit Scheme. This scheme, which began in the 2024 Yuletide season, is now operational and providing more affordable intra-city transport options.
Oluwagbemi acknowledged the challenge of ensuring CNG fuel availability at the last mile due to the rapid uptake of the programme. However, he also unveiled the Refueling On-Lending Programme, an ambitious plan aimed at addressing fuel supply bottlenecks. This initiative will see 25 critical refueling stations set up across 15 states, with subsidized equipment for each site.
The first operational station is located in Kwara State, with additional stations expected to come online by May 1 in Kogi, Ekiti, Rivers, and Abuja. By June 2025, CNG refueling will be available in 17 states, with an expansion to 30 states by the end of the year.
The private sector is also actively contributing, with NNPC having established 12 CNG stations, and plans for 8 more stations to be operational in the coming quarter.
NIPCO currently operates 22 daughter stations, with 8 more under construction.
Experts stress that to secure telecommunications investments, more action than just CNII is needed. Companies like Bovas, AY Shafa, Ibile Oil and Gas, MBH, and Mikano are actively expanding their infrastructure.
Mikano’s main station, located in Ogun and the largest in Nigeria, will support heavy-duty trucks, significantly reducing the cost of transporting food and goods across the country.
To combat inflation and further reduce logistics expenses, the PCNGI is preparing to launch a Diesel Conversion Program aimed at the haulage sector. According to Oluwagbemi, converting a diesel truck can reduce operational costs by as much as 80%, a crucial step in lowering food inflation and enhancing supply chain efficiency.
In partnership with the Federal Ministry of Education and the Midstream Downstream Gas Infrastructure Fund (MDGIF), the PCNGI will also introduce subsidized CNG services and training initiatives in 20 federal universities. The program will offer discounted vehicle conversions for university staff, campus-based CNG bus and tricycle services, accredited technical training through a new TVET initiative, and the development of refueling infrastructure to serve the university communities.
Operations at the first six universities are set to begin by the end of Q2 2025.
Addressing safety concerns regarding CNG, Oluwagbemi announced the upcoming launch of the Nigeria Gas Vehicle Monitoring System (NGVMS), in collaboration with SON, NADDC, NMDPRA, and FRSC. This system will ensure that only certified vehicles are allowed to refuel at designated stations.
He also reassured the public, explaining that the only significant incident reported, the Benin explosion last yea, was caused by illegal CNG cylinder fabrication by saboteurs, who have since been apprehended.
To guarantee a steady gas supply, the Petroleum Company of Nigeria Gas Industries (PCNGI), in collaboration with the NNPC, Nigeria Gas Marketing Limited, and other key partners, has completed a Mobility CNG Framework. This initiative aims to provide 100 million standard cubic feet per day (mmscfd) of gas supply for vehicles at preferential rates.
The framework is set to launch within the next two to four weeks, ensuring that all CNG-powered vehicles can refuel at affordable prices, while addressing the issue of price discrepancies.
Oluwagbemi expressed his gratitude to President Tinubu for his continued support and commended the Ministries of Finance and Petroleum (Gas) for their pivotal roles in the program’s success.
“This program is more than just a shift to alternative fuels, it represents job creation, climate change mitigation, cost reduction, and a source of national pride. We are paving the way for a brighter future, one CNG vehicle at a time,” he stated.