The Nigerian government has activated over 125 Compressed Natural Gas (CNG) conversion centres across the country, surpassing its initial target of 100 centres. This development, part of the Presidential Compressed Natural Gas Initiative (P-CNGI), marks a significant milestone in Nigeria’s efforts to reduce reliance on petrol and boost cleaner energy alternatives.
Speaking in Abuja, the Chief Executive Officer of P-CNGI, Michael Oluwagbemi, noted that the country has seen rapid growth in CNG infrastructure. “This time last year, the country had just seven conversion centres, and we promised to deliver at least 100 this year. Already we have well over 125,” Oluwagbemi said.
In the past week alone, the CNG sector has attracted an additional N80 billion in investments, contributing to a total of $175 million in investments by September 2024.
Oluwagbemi also revealed that President Bola Tinubu has directed the conversion of one million commercial vehicles, including ride-share services, to CNG free of charge. “Commercial vehicles are responsible for 90 percent of passenger transport in Nigeria, so we are prioritizing their conversion,” he explained.
The initiative has created jobs for over 20,000 people, but challenges remain, particularly with the availability of gas at conversion centres. “The availability of gas is still a challenge, especially at the conversion centres because once they convert, they need to top up with gas in order to calibrate,” Oluwagbemi noted, adding that the P-CNGI is working with the private sector and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop mobile refueling units.
Despite these challenges, the initiative is progressing. By the end of the year, 18 states are expected to have operational CNG centres, although the lack of gas infrastructure in the North East and North West remains a constraint. Oluwagbemi indicated that discussions are underway to connect these regions to the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project.
He further added that four of the six companies recently awarded N122 billion by the Midstream and Downstream Gas Infrastructure Fund are focusing on CNG development. The accelerated timeline for CNG rollout has been adjusted due to global geopolitical events, including the ongoing Palestine-Israel conflict, prompting a shift toward engaging local manufacturers for quicker delivery.
The Nigerian government remains committed to expanding its CNG infrastructure, with plans to continue attracting investments and boosting job creation in the sector.
