The Federal Government aggressively promoted the Compressed Natural Gas (CNG) initiative over the past year.
However, some states exhibited lukewarm responses, leading to a slowdown in progress.
Furthermore, the unavailability of gas significantly hindered participation, particularly in the Southeast and Northeast geopolitical zones, which failed to engage with the initiative.
Currently, only 23 out of the 36 states have joined the CNG revolution, which the Bola Ahmed Tinubu Administration has intensified since his inauguration on May 29 last year, where he announced the end of fuel subsidies.
Despite these challenges, the Presidential Initiative on Compressed Natural Gas (Pi-CNG) successfully distributed 150,000 kits and converted 50,000 vehicles from petrol to CNG.
This marks a significant increase from last year, which saw only 2,000 kits and the conversion of 4,000 vehicles.
The CNG initiative provides an alternative to petrol, especially after the recent price surge caused by subsidy removals.
Additionally, CNG is recognized as a cleaner energy source.
Pi-CNG Programme Director Michael Olugbemi stated,
“President Tinubu’s decisive policy to eliminate petrol subsidies has made CNG a more viable alternative, as it is 70-90% cheaper, cleaner, safer, and more reliable.”
Moreover, the Pi-CNG has achieved notable milestones, including the production of 807 CNG buses, the procurement of 3,500 CNG tricycles, and the training of 1,000 auto technicians nationwide.
According to projections from the Presidential Initiative, the goal for next year is to convert 100,000 cars, with an ambitious target of 1,000,000 conversions by 2027.
The rapid CNG Initiative has attracted approximately $450 million in investments, potentially leading to an investment drive of about $3 billion by 2027.
CNG training
The Compressed Natural Gas (CNG) initiative launched comprehensive training programs to equip auto technicians for Nigeria’s growing CNG vehicles.
These programs focus on critical areas such as CNG system operation, safety protocols, and the installation of conversion kits.
Trainees learn essential maintenance and repair techniques while gaining proficiency in using diagnostic tools essential for evaluating CNG systems.
Upon completion, technicians receive certifications to enhance their employability within the industry.
The initiative’s emphasis on safety ensures that technicians adhere to strict handling protocols.
In addition to technical training, participants benefit from industry linkages that provide exposure to real-world practices and potential job opportunities.
This focused approach strengthens the workforce as the country advances its transition to cleaner energy through the CNG initiative.
However, the CNG’s Conversion Incentive Program (CIP) thrives mainly in Northcentral and Southwest regions, expanding into Northwest and South South
Next year, CIP plans to extend into Northeast and Southeast, contingent on gas availability in those regions
The Pi-CNG 2024 Year-End Updates highlight impressive progress, raising the number of kits to 50,000 cars this year.
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Pi-CNG pursues three core objectives: incentivizing CNG adoption, deploying CNG vehicles, and providing discounted conversion kits and training.
Additionally, the initiative facilitates investments to fill gaps in conversion workshops, infrastructure, and CNG supply nationwide for better accessibility.
Moreover, the Pi-CNG streamlines regulations to ensure safety and reliability while promoting rapid CNG adoption and interoperability.
The initiative achieved remarkable growth, increasing conversion centers from seven to 150 and CNG refueling stations from 12 to 58.
Furthermore, mobile refueling units increased from zero to seven, and the Pi-CNG introduced five modular CNG units this year.
Lastly, the initiative expanded Mini-LNG facilities from one to four, while procuring 807 buses and 3,500 tricycles.
The investment drive has reached approximately $450 million, aiming for 1,000 conversion centers and 1,000,000 CNG vehicles by 2027.
In response to inquiries, Olugbemi stated President Tinubu’s decision to remove petrol subsidies boosted the success of the CNG initiative.
He highlighted that prior administrations did not prioritize a cleaner energy transition like the current administration is doing.
“The President’s vision for nationwide mass transit aims to stimulate demand, exemplified by the Conversion Incentive Programme (CIP) that offers one million free conversions for mass transit vehicle owners, thereby fostering a business-friendly investment environment in the CNG sector—a clear departure from past failures in promoting CNG adoption.”
Olugbemi explained the government’s inclusive approach, emphasizing that it encourages increased private sector investment in CNG initiatives.
Regarding expansion plans for the next year, he stated, “Much of our success stems from the inclusive implementation approach that has encouraged private sector participation and investment in driving adoption.”
He further clarified,
“Pi-CNG acts as a catalyst, ensuring that it does not replace private sector initiatives and innovations.”
In 2025, we will consolidate private sector investments, drive vehicle conversions, and expand infrastructure, especially in the North.
This expansion will align with major infrastructure breakthroughs, such as the Olugbemi mini-LNG projects and the AKK Pipeline completion.
assured that the CNG initiative would soon fully activate in the Northeast and Southeast through the CIP.
He mentioned, “The CIP provides free CNG conversions for commercial drivers. The CIP in Enugu and Abia will launch in February when gas becomes available.”
He acknowledged that the gas distribution network has expanded from seven states at the program’s inception to 17 states now participating in the CIP.
“To achieve our goals, we require daughter stations and CNG dispensing facilities, and private sector actors will lead these investments,” he added.
“We anticipate extending services to the Northeast by late 2025 or early 2026 when gas projects in Ajaokuta are completed.”
