Over $200 million invested in Nigeria’s CNG initiative, says project director

By Kunle Sanni

The Presidential Compressed Natural Gas Initiative (Pi-CNG) has reported that more than $200 million has been invested in Nigeria’s transition to Compressed Natural Gas (CNG) as an alternative fuel, a move aimed at lowering fuel costs and promoting cleaner energy nationwide.

Michael Oluwagbemi, project director and CEO of Pi-CNG, addressed recent media criticisms of the initiative on Wednesday, dispelling what he called “misinformation” regarding CNG adoption in Nigeria.

Oluwagbemi emphasized that Nigerians have shown strong interest in CNG, with many converting their petrol-powered vehicles to CNG-compatible models since the initiative’s launch.

“Following recent media reports, we find it necessary to address certain misinformation regarding the Presidential CNG Initiative,” Oluwagbemi said in a statement. “In response to the high cost of petrol and rising transportation expenses after the removal of fuel subsidies, President Bola Tinubu launched the Presidential CNG Initiative to provide a cheaper, cleaner energy source for Nigerians.”

According to Oluwagbemi, over 100,000 vehicles have been converted to CNG or bi-fuel models, and new conversion centers are opening nationwide. He highlighted that private investment in CNG infrastructure is rapidly increasing, with more than $200 million invested across the value chain. This shift, he noted, has created thousands of jobs and generated economic opportunities.

However, Oluwagbemi raised concerns about misinformation circulating in the media. He stated that reports suggesting a lack of infrastructure are unfounded, with conversion centers growing from seven in 2023 to over 140, far exceeding the reported 50.

“Facts are sacred… To claim or assert without veracity and evidence is an obvious attempt at mischief,” Oluwagbemi remarked. He also emphasized the economic advantage of CNG, which could save Nigeria $3 billion and generate $2 billion in revenue over the next three to four years, compared to petrol, which previously cost Nigeria around $10 billion annually in subsidies.

Oluwagbemi further stated that commercial vehicle conversions are free under the President’s Conversion Incentive Programme, which aims to convert one million vehicles to CNG within three years. Private investments totaling over 2 billion naira have already funded these centers, with plans for an additional 6 to 10 billion naira to establish more facilities and meet the target of 1,000 conversion centers.

In response to safety concerns following a recent explosion in Edo State, Oluwagbemi clarified that CNG is a safer, more sustainable alternative, being lighter and far less explosive than petrol or diesel. He attributed the incident to uncertified and poorly fabricated CNG cylinders, stressing that CNG conversion is both secure and environmentally sound.

“CNG distribution is advancing with 75 new stations under construction, and additional containerized and mobile refueling units are being set up by private sector partners,” Oluwagbemi said. “Mother station investments have exceeded $175 million in the last year, and 65 new licenses have been issued.”

Highlighting the inclusivity of the initiative, Oluwagbemi stated that CNG kits are compatible with older vehicles, successfully tested on Lagos’s yellow buses, with similar successful implementations in countries like Egypt, India, and Iran.

Oluwagbemi also addressed claims that the government is not actively participating in the CNG initiative. “On the contrary,” he said, “the program began with government institutions like the Nigerian Army and the Nigeria Police through the Police Trust Fund.”

He added that federal agencies, including the Federal Road Maintenance Agency, the Ministry of Finance, and the Federal Inland Revenue Service, are now part of the conversion program, with directives ensuring only CNG-compatible vehicles are purchased for government use.

The Presidential CNG Initiative, Oluwagbemi concluded, remains committed to transforming Nigeria’s energy landscape by providing affordable and sustainable energy solutions for all citizens.