The Nigerian government has converted about 100,000 petrol-powered vehicles to Compressed Natural Gas (CNG) in the past year, marking a major milestone in its push for cleaner, more affordable transportation.
This update was disclosed by Michael Oluwagbemi, Programme Director and CEO of the Presidential Compressed Natural Gas Initiative (PCNGi), during a sensitisation workshop held in Lagos.
Speaking on Friday, Oluwagbemi highlighted the success of the initiative, which was launched to cushion the impact of fuel subsidy removal on Nigerian consumers.
He said the number of CNG-powered vehicles in the country has surged from fewer than 4,000 to nearly 100,000 in just over a year.
“From just seven conversion centres last year, we now have 265 centres nationwide. We’ve also created over 10,000 direct jobs and grown from 20 to 60 operational refuelling stations, with 175 more underway,” he said.
“The President’s vision was clear: reduce the pressure on citizens by leveraging domestic energy sources like natural gas to create a more sustainable, cost-effective transportation system.
Public awareness was initially low, but Nigerians are now embracing CNG across the country,” he added.
Private sector backs government-led transition
Oluwagbemi noted that the CNG programme is not solely a government initiative, pointing to growing interest and investment from the private sector.
He cited the recent rollout of 4,000 CNG trucks by the Dangote Group as a strong signal of confidence from the industry.
“So far, over $1bn has been invested in the sector, including $280m from Dangote Group, $28m from Arita LNG, and contributions from other stakeholders like Femadec, Greenview, and Greenville.”
He also revealed that the next phase of the initiative will target 250,000 vehicle conversions in collaboration with private partners.
The PCNGi boss confirmed growing support from major transport unions, including the Road Transport Employers’ Association of Nigeria and the National Union of Road Transport Workers, alongside private logistics providers.
“So far, we have 60 CNG stations up and running—up from just 20 in late 2023. Over the next three months, we plan to commission an additional 100,” he said.
The programme launched in Akwa Ibom state last October, with key gas supplying plant already underway.
Transporters say CNG cuts operating costs
Also speaking with reporters, Babatunde Karim, an executive member of the Road Transport Employers’ Association of Nigeria, praised the initiative for helping transporters save money.
“Before now, we used to spend about N50,000 on petrol to ply a particular route. Today, with CNG, we spend as little as N12,000. That’s a huge relief. It shows the government is on the right track,” Karim said.
He confirmed that many commercial transport operators in Lagos have started converting their vehicles to CNG. However, he raised concerns about challenges at filling stations.
“There are times when we get to a station and there’s no pressure. Other times, there’s no gas at all. These are issues that need urgent attention,” he added.
Marketers seek infrastructure, regulatory support
Dele Tajudin, an executive member of the Independent Petroleum Marketers Association of Nigeria (IPMAN), also spoke on behalf of the group’s national president, Alhaji Abubakar Maigandi.
He acknowledged the promise of the CNG programme but emphasised the need for more robust regulatory support and financing.
“Installing a CNG facility isn’t plug-and-play. It involves structural changes, regulatory compliance, and funding. Without government support, most marketers won’t be able to make the switch,” Tajudin said.
He noted that most existing filling stations were originally designed for petrol and diesel, making the switch to CNG capital-intensive.
“Independent marketers are present in virtually every part of Nigeria, especially where major marketers are not. We are well-positioned to drive this transition, but we need financing and technical support from the government,” he stressed.
He also warned that limited infrastructure was causing long queues and restricting access to CNG for many motorists.
The CNG initiative was launched in late 2023 and targets 1 million vehicles by 2027.
President Bola Ahmed Tinubu today appointed Barrister Ismael Ahmed, 45, as the Executive Chairman of the programme.