Tag: CNG conversion

The House Committee on Land Transportation says it will collaborate with the National Institute of Transport Technology (NITT), Zaria, to ensure affordable Compressed Natural Gas (CNG) conversion for Nigerians.

Ms. Blessing Onuh, Chairman House Committee on Land Transportation, told newsmen in Zaria, Kaduna, during an oversight visit by the committee in Zaria on Tuesday.

She said Nigeria was clamoring for conversion of cars from petrol to CNG, which was cheaper and cleaner energy, hence an urgent need to make it affordable to Nigerians.

The committee chairman said she would keep discussing with the Director-General of NITT towards making the conversion more affordable for Nigerians.

However, the committee lamented that the institute was one of the Federal Government’s pilot institutions for the petrol/CNG conversion, adding that most conversion centres were yet to be completed.

She noted that Nigerians were suffering due to high cost of petrol, saying, “the institute has a pivotal role to play in ensuring that Nigerians are at ease especially on transportation aspects.”

Onuh said she was amazed by the infrastructure in place at the institute; adding, “institute is under-utilised, hence the urgent need for improved publicity for the institute.”

According to her, the improved publicity is to inform Nigerians and the global community on the services rendered by the institute for better patronage to enhance economic growth of the country.

She, therefore, called on the Director-General of NITT for increased publicity for the institute, while pledging to support the institute through increasing funding towards harnessing its mandate.

Read Also: Carloha showcases Arrizo 5 CNG conversion to auto technicians

In his remarks, the Director-General, NITT, Dr Bayero Farah, said in 2022, there was drastic reduction in budgetary allocation for the institute, which made many projects to remain uncompleted.

He, therefore, appealed for increased budgetary allocation for the institute’s programmes and activities.

Farah said the institute’s Act was enacted 40 years ago, adding that a lot of the provisions in the Act require amendment.

The D-G said the 9th Assembly passed the Act but it couldn’t secure presidential assent, “therefore, let me use this medium to appeal to the committee to push for the amendment of the institute’s Act for optimal performance.”

(NAN)

In a significant move to tackle rising fuel costs and promote energy diversification, the Nigerian government has launched the Presidential Compressed Natural Gas Conversion Implementation Initiative (P-CNGI).

The first group of 50 beneficiaries in Lagos, primarily transport operators, have begun receiving free conversion kits, marking the beginning of a national drive towards more affordable and eco-friendly fuel alternatives.

The launch event, held at the Ojota Interchange Terminal in Lagos over the weekend, saw enthusiastic transporters eager to switch from petrol to compressed natural gas (CNG).

As global petrol prices surge, straining Nigeria’s economy, this initiative offers much-needed financial relief to the transportation sector.

The Presidential CNG Conversion Initiative is a key component of President Bola Tinubu’s broader strategy to diversify Nigeria’s energy resources.

Omoh Imoukhuede, Commercial Operations Manager of P-CNGI, highlighted the importance of the project in reshaping the country’s energy landscape.

“We all know the impact of fuel prices, and we understand fully that there are alternatives. Gas is one of them,” Imoukhuede stated.

“For you to fill up your car right now, it’s going to cost you an arm and a leg. But if you convert to CNG, you’re looking at savings of almost 80 percent compared to how much you actually spend on petrol.”

Imoukhuede’s point hits home for the transport operators present, many of whom indicated their struggle with rising operational costs due to the high price of petrol.

For them, transitioning to CNG will offer the difference between profitability and financial hardship.

A transporter at the terminal, who identified himself as Oyekale Jelili echoed the sentiment: “Some of our drivers have already done it, and it’s very, very far cheaper than the cost of fuel.

Another transporter, Saliu Musa, said: “We learned that when you switch to gas, the price is so cheaper; that is why we’re here.”

At the Ojota terminal, Chief Executive Officer of AutoGIG International, Tope Bukola-Ojo, praised the initiative.

“Nigeria is more or less a gas country, and we have to leverage that for our energy security. This partnership will continue to grow, and we are committed to helping the government push this forward,” Bukola-Ojo noted.

Chief Operating Officer at Portland Gas, Mitchelle Ejiofor highlighted the initiative’s focus was not only on cost savings but also on promoting cleaner energy alternatives.

“CNG is a safe gas. It’s safer than petrol combustion and significantly reduces emissions, promoting cleaner energy use across the country,” said Ejiofor.

The federal government announced it aims to convert 55,000 petrol vehicles to CNG and introduce over 11,500 new CNG-enabled vehicles as part of this initiative, reducing reliance on imported fuel and contributing to long-term energy security.

Read Also: PCNGi rallies stakeholders, targets one million autogas conversions by 2027

This shift toward natural gas, the government emphasised, will not only ease the burden of high fuel costs but also help reduce the overall cost of living for Nigerians by lowering transportation costs.

For many other stakeholders, Nigeria as a country known for its substantial natural gas reserves, this initiative is a logical step towards harnessing local energy resources.

The event at Ojota is just the beginning, as the team responsible for the conversion kits moves on to additional centres in Isolo and Gbagada to continue the distribution of free kits to more transport operators.

The long-term goal is to make CNG a mainstream fuel source across the country, ensuring that Nigeria’s vast natural gas resources are fully utilised.

Mr Michael Oluwagbemi, Chief Executive Officer/Programme Director, Presidential Compressed Natural Gas (CNG) Initiative, says 30,000 CNG conversion kits have been procured to be distributed to commercial drivers within 90 days.

Oluwagbemi disclosed this at the Park-to–Park CNG Conversion Mobilisation on Saturday in Lagos.

He added that the  CNG initiative was to ensure that commercial drivers would benefit from the palliative measure for transporters.

“We have been across over 14 states, we have been to Ilorin, Ekiti, Lokoja, Aba and Port Harcourt; we have been to the South-East even to the North.

“We are confident we have built a national movement for this conversion.

“What we now need is action, and that is why we are here today. We are acting on what Mr President has said –  to roll out and roll out fast.

“ We are here to put to action, our talk in the past six months. This is the time for Nigeria to use the gas.

“Nigeria should believe in this project, there might be some challenges but we should believe in it.

“This is our country,; so, we need to support this programme, support Mr President. Don’t be negative, we should be positive in this,” he said.

Oluwagbemi pointed out that CNG was cheaper, cleaner, safer and more reliable, adding that it had 40 per cent less steel emission and 90 per cent less pollutant in the air.

“Definitely, there is an advantage to use CNG for the environment. We are already flaring gas. What we are saying is that instead of flaring gas, we use it for the growth of the economy,” he said.

A former commissioner for Transportation in Lagos State, Dr Kayode Opeifa, said that the provision of conversion kits by the Federal Government was in keeping to its promise of easing the effects of fuel price increase, for transporters.

According to him, 150 beneficiaries will collect voucher for conversion which they will take to an nstallation centre.

He added that they would  refill  gas at N250 per kilogramme.

“This will, in turn, increase pocket savings, reduce transport fare and prices of commodities,” he said.

Mr Najeem Yasin, a former National President, Nigerian Union of Road Transport Workers (NURTW), said that the initiative would positively affect the lives of transporters in the country.

“Today, we are here to launch the programme officially. We started in Kaduna, and today, we are here, in Lagos.

Read Also: Fed Govt slashes CNG conversion cost by half

“We appreciate the president of Nigeria for trying to assist  transport workers throughout the nation.

“ With the CNG, prices of commercial vehicles should come down, and this will affect all sectors of the economy,” he said.

He said that NURTW was involved in the project to make sure it would go round.

“The whole 36 states would get this free conversion kits, and we assure Mr President that the aim would be actuslised,” he said.

He urged all transport associations to bring their lists for conversion.

The News Agency of Nigeria (NAN) reports that 14 conversion centres were represented for   signing of  the dotted line for the mass distribution.

Some of them are: Portland Company located at Okota, MBH Power located at Ikorodu, Fix-It Fortified Group,and Dana Motors Group located on Victoria Island.

The others include Mezovest Company located at Lekki, Autogas African Logistics, and Autogas Nigeria Ltd.

(NAN)

The Presidential Initiative on Compressed Natural Gas (Pi-CNG) yesterday announced a 50 per cent cut on the cost of conversion of petrol-powered vehicles to gas.

Programme Director Michael Oluwagbemi, who dropped the hint, said it was part of Federal Government efforts to encourage popular shift to more cost-effective and sustainable transportation system.

With the discount, the conversion cost which is N1.2 million will not be N600,000.

The government is providing conversion kits to transporters at 50 per cent discount in addition to other incentives and initiatives aimed at ensuring seamless transition to CNG.

Oluwagbemi said the government, in its efforts to reduce the cost of public transportation, is supporting the sector with the introduction of CNG buses and tricycles (Keke).

“In the next days, you will witness these buses on the streets of Abuja, even as we also start to make conversion kits available at 50 per cent discount to the transport sector”, the Pi-CNG director, who was represented by Mr. Tosin Coker, spoke during the stakeholders’ event of the Initiative and Portland Gas in partnership with the National Agency for Science and Engineering Infrastructure (NASENI), in Abuja.

The theme of the event was: “Driving sustainable transportation: Accelerating CNG adoption in Nigeria.”

Portland Gas Managing Director, Mr. Folajimi Mohammed, said CNG-powered vehicles reduce fueling cost by 76 per cent in comparison to petrol.

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Allaying the fears of any untoward incident such as susceptibility to fire outbreak and breakdown, he said gas is lighter than air and its chances of fire outbreak is slim.

“We are seeing close to about 76 per cent savings in cost alone. So without a doubt, we know that adoption of CNG is almost inevitable,” Mohammed said.

The conversion, he noted costs N1.2 million, which a transporter can recover in a year.

He said: “Is it safe? I am sure this is a very pertinent question everybody has asked. Why do I have gas in my trunk? What happens in the event of explosion?

“Let us make this understandable. The component of CNG is methane (CH4 is lighter than air). When we mean lighter than air, in the event there is any release of it, it goes and expresses into the air.

“Have there been incidents? Yes, there hava been. But the chances are extremely very narrow,” Mohammed said.

He said since gas cannot be adulterated, it has an excellent combustion, compared to any other fuel.

According to him, there is provision for alternative fueling since the CNG points are still few.

Mohammed also said Pi-CNG registers the converted vehicles owners as beneficiaries of carbon credit.

Oluwagbemi added that more than $50 million has been mobilised in the CNG sector since the inception of the Initiative, a feat that was not attained in the last 10 years.

He said: “Financing and Enabling Infrastructure: In December 2023, we hosted our first investor forum, which saw tremendous participation from companies now investing in the sector.

“I am pleased to report that well over $50 million has been mobilised directly by the sector since then, more than any amount mobilized in the last ten years combined.”