The aggressive promotion of the Compressed Natural Gas (CNG) initiative in the last one year by the Federal Government recorded a slow down because of lukewarmness in some states.
Another reason for the below-expectation performance is the unavailability of gas as a result of which the Southeast and the Northeast geo-political zones failed to key into the plan.
Only 23 out of the 36 states have joined the CNG revolution, upscaled by the Bola Ahmed Tinubu Administration, following his “fuel subsidy is gone” pronouncement at inauguration on May 29 last year.
Despite the hiccups, Presidential Initiative on Compressed Natural Gas Initiative (Pi-CNG) has been able to distribute 150,000 kits and achieved the conversion of 50,000 vehicles from petrol usage to CNG. This is up from the availability of only 2,000 kits and conversion of 4,000 vehicles last years.
The CNG is designed as alternative to petrol use, following the increase in the pump price of petrol subsidy payment payment.
Besides, CNG is a cleaner energy.
Pi-CNG Programme Director, Michael Oluwagbemi, said: “President Tinubu’s singular policy of eliminating subsidies on petrol made CNG a much more viable alternative since it is 70-90% cheaper, cleaner, safer and more reliable”.
It was gathered also that the Pi-CNG record the following feats:
•Production of 807 CNG buses;
•Procurement of 3,500 CNG tricycles; and
•Training of 1,000 auto-technicians nationwide
According to projections of the Presidential Initiative, 100,000 cars are to be converted next year, with the figure rising to 1,000,000 in 2027.
The rapid CNG Initiative, which has attracted about $450 million may lead to investment drive of about $3 billion in 2027.
But out of the six geopolitical zones, the CNG’s Conversion Incentive Programme (CIP) has been embraced in the Northcentral and Southwest, with growing acceptance in the Northwest and Southsouth.
There are plans to extend the CIP to Northeast and Southeast next year with gas prospect in the affected zones.
According to the Pi-CNG 2024 Year End Updates obtained exclusively by our correspondent, there was an appreciable progress on CNG from 2,000 kits and 4,000 cars in 2023 to 50,000 cars this year.
The Pi-CNG has three-pronged objectives. They include:
•The PCNGI role is to incentivise adoption of CNG for Mobility, by deploying and financing CNG Vehicles for Mass Transit , distributing CNG Conversion Kits at discount and providing conversion incentives including training.
•The PCNGI role is to facilitate investments in the CNG sector to plug the Conversion Workshop, Infrastructure and CNG supply gap that exists across the country to accelerate access to CNG and thus cheaper transportation.
•The PCNGI is to enable the regulatory process for CNG to ensure zero incidents while enabling rapid adoption and promoting reliability, safety and inter-operability.
Other achievements recorded by the Pi-CNG are: increase in conversion centres from seven last year to 150; CNG refueling infrastructure rose from 12 to 58; Mobile refueling unit from 0 to 7; modular CNG units from 0 to 5; number of Mini-LNG increased from 1 to 4; procurement of 807 buses and 3, 500 to be distributed; and establishment of three Manufacturing Hubs among others.
The investment drive was “put at $450 million so far.”
The updates projected that by 2027, there would have been 1,000 conversion centres across the country with 1,000,000 kits and 1,000, 000 CNG-powered cars.
The investment in CNG is estimated to hit $3 billion in 2027.
Responding to questions, Olugbemi added that the bold decision of President Tinubu to remove petrol subsidy has led to the significant success on CNG.
He said other administrations had not paid attention to a cleaner energy drive as done by this administration.
He said: “Indeed, the President’s vision of nationwide mass transit that seeks to stimulate demand (like the onversion Incentive Programme (CIP) that provides for one million free conversions for mass transit vehicle owners) thereby creating business friendly investment environment in the CNG sector has been a distinguishing attempt from previous failed attempts to drive CNG adoption.”
Olugbemi explained the inclusive approach adopted by the government and why the private sector was buying in into CNG.
On the expansion plan of the initiative for next year, he added: “Much of the success boils down to the inclusive approach to the implementation that has seen private sector jump in and really invest in driving adoption.
“Pi-CNG has acted as the catalyst ensuring not to try to replace private sector initiative and innovation.
“For 2025, we hope to consolidate on the private sector investments. We hope to drive both conversion and OEM vehicle adoption, while expanding infrastructure especially to the North that currently lacks it on the back of major infrastructure breakthroughs including mini LNG projects and AKK Pipeline completion of the administration.”
Olugbemi assured that the CNG initiative will soon be fully activated in the North-East and Southeast through CIP.
He said: “CIP is the CIP that provides free CNG conversion to commercial drivers . Enugu and Abia CIP will be activated in February when they get gas. Gas distribution network is limited. It was in seven states when we started the programme but now covers 17 which are part of the CIP.
“You need daughter stations and CNG dispensing to achieve it and private sector actors are the ones investing.
“We hope to extend to the Northeast before the end of 2025 to early 2026 when gas projects in Ajaokuta gets completed.”
Reports by The Nation correspondents across some states and the Federal Capital Territory(FCT) show that some do not have Compressed Natural Gas (CNG) conversion centres or refill stations.
The states are Delta. Kwara, Jigawa, Adamawa, Plateau, Niger, Imo, Enugu, Akwa Ibom, Benue, Osun and Borno.
However, many of them indicated interest in keying into the Federal Government initiative. Borno opted for Electric Vehicles(EVs) and tricycles.
Oyo, Ogun, Ondo, Rivers, Edo states and FCT have conversion and refill plants.
• FCT
A few months ago, the Federal Government distributed 64 CNG buses to the FCT Administration as part of Nigeria’s 64th Independence Anniversary celebrations.
A transporters, Oladele Abiodun, told The Nation that there were only four conversion/ refill centres in the FCT.
Abiodun, who lamented that there were few CNG centres in the territory, called on the Federal Government and FCT Administration to establish more.
He said those who have converted their vehicles always queue for hours to buy CNG.
A civil servant ,who pleaded anonymity, told our correspondent that he spends over four hours at the stations to buy gas.
• Osun
Commissioner for Information and Public Orientation, Kolapo Alimi confirmed to The Nation that the state has no conversion/refill centre. He added the Federal Government has provided the state with no free CNG buses.
The commissioner appealed to Federal Government to redeem its pledge of providing conversion centres and buses to ease the hardship faced by residents.
Alimi said: “There is no single CNG conversion centre in the state neither do Federal Government provide the vehicles promised. The only thing that is on ground to ease hardship over transportation is Imole bus provided by Governor Ademola Adeleke for workers, students, and residents.’’
• Ogun
The state blazed the trail with the rollout of 17 CNG-powered buses on October 30, 2023.
Sources close to the transport ministry revealed that 31 vehicles have been converted to CNG so far out of 60 free conversion kits received from the Federal Government.
There are three conversion centres operated by the Nigeria Gas Transport Solution Ltd (NGTSL) in the state’s Public Works Agency; Next Gen Limited in Abeokuta and another in Mowe – Ibafo corridor.
There are also three CNG refilling stations – Green Fuel at Obada in Abeokuta; Gasco Marine also at Obada and another at Mowe/Ibafo.
• Oyo
The Federal Government which delivered 20 CNG buses to the state commenced the first phase of free vehicle conversion in Ibadan, the state capital on September 15.
Seventy vehicles have so far been converted in the state.
First Vice-Chairman of the state’s Park Management System (PMS) Ademola Adeoye said the CNG initiative was well received by PMS members
He, however, said others have not been able to convert their vehicles due to many reasons, including lack of funds.
Pointing out that there were no enough conversion centres in the state, Adeoye called on the government to consider opening more
He said: “Over 70 of our commercial vehicles has been converted as of Friday. But there are no enough conversion centres in the state. Only three conversion centres were recommended by Federal Government for the state.”
• Ekiti
Commissioner for Infrastructure and Public Utilities Mobolaji Aluko said the government has shown significant commitment to the CNG initiative
Aluko stated that the Federal Government unveiled seven conversion centres in the state which are already using CNG to power its independent power plant.
He added that the state has received 15 CNG buses from the Federal Government under the Presidential Compressed Natural Gas Initiative (PCNGi) to enhance public transportation in the state.
• Enugu
The government is presently constructing a massive CNG mother station with a capacity to serve the entire Southeast.
It is also plans to build ancillary daughter stations that would look like filling stations.They will be fed by the mother station to be located at Ugwu Onyeama.
The Nation also gathered that some private firms in the state had already taken the lead in training interested technicians on how to convert vehicles from PMS to CNG.
Commissioner for Transportation Obi Ozor had two months ago said the government had taken steps to introduce CNG buses as part of the efforts to preserve the environment and also make transportation affordable for citizens.
Ozor added that the state was playing its part to not only invest more in buying CNG buses, but supporting private sector investment in the transportation space.
• Rivers
It was gathered that some CNG-powered vehicles had been sent to the state government by the Federal government.
Efforts to confirm the development yielded no positive results as the Commissioner for Information, Mr. Joseph Johnson, neither responded to telephone calls nor replied to a text message sent to him.
But a source in Port Harcourt said some CNG-powered vehicles were sent by the Federal Government to the state
There was, however, no evidence to show that the vehicles had been deployed for use in the state
Our source said plans had been concluded by the government to open two CNG refill stations and two conversion parks in the state capital.
He said: “ The stations will be launched in Port Harcourt and we are launching a refuelling unit alongside. Rivers State is going to have a micro refuelling unit at Stadium Road and in Government Reservation Area(GRA).
To increase the availability of CNG centres, the Portland Oil and Gas recently opened such centre to facilitate conversion at the Onne Oil and Gas Free Zone in the state.
• Ondo
The use of CNG- powered vehicles is yet to take firm root in the state due to the absence of conversion workshops and plants.
The Nation gathered that one plant being constructed in the state is 90 percent completed.
Lafbart Innovations and Consulting limited was granted licence to undertake the conversion of PMS-powered vehicles to CNG in the state.
Special Adviser to Governor Lucky Aiyedatiwa on Transport Olugbenga Omole said the state’s 2025 budget made provision for the purchase of CNG-powered vehicles.
Omole added the state was yet to receive CNG-powered buses from the Federal Government.
• Kwara
The government last week received 20 CNG vehicles from the Federal Government last week.
A member of the Road Transport Employers Association of Nigeria (RTEAN), who did not want his name in print, said: ‘NURTW and RTEAN members attended the ceremony as observers.”
• Niger
The state which has no conversion/refill centre, procured 200 CNG buses this year.
The buses are currently parked at the Trade Fair Complex in Minna.
Governor Mohammed Bago had during the presentation of the state’s budget for next year to the House of Assembly, said his government earmarked N10 billion for modern bus terminals and CNG stations across the state.
He assured that the 200 CNG buses would soon be put to use.
Bago also revealed that his government was planning to distribute 1,000 electric tricycles to ease movement in the state.
• Plateau
In Jos, Commissioner for Transport Davou Gyang said the primary barrier to implementing the CNG initiative in the state was an insufficient number of refill stations.
Gyang told The Nation that a private firm, Greenville Energy, which built a CNG station in Nasarawa State, is to set up one in Plateau at no cost.
He said: “We have not given them(Greenville) the go-ahead because having a conversion centre without refill stations is as good as not achieving anything.
‘’There has been no significant uptake or conversion of local vehicles to CNG due to the lack of refill infrastructure.
“We are also having discussions with the National Institute of Transport Technology (NITT) to identify a temporary site for vehicle conversions to CNG.
‘’ They have built a CNG station in Nassarawa State and currently building another in Kaduna. Plateau has yet to receive any single CNG vehicles. We have the intention of converting the Plateau Riders vehicles to CNG.’’
• Imo
Transport Commissioner Chika Abazu said Governor Hope Uzodimma tasked his ministry to create a comprehensive CNG strategy
He said: “The plan capitalises on the state’s rich natural gas resources, aiming to generate jobs, slash transportation expenses, and stimulate economic growth.
‘’We have started key components construction which include building three main CNG stations and associated smaller stations and vehicle conversion centres.
“This infrastructure will enable widespread CNG vehicle adoption, providing drivers with lower fuel costs and environmentally friendlier transportation.’’
He added that Mashati Energy was committed to establishing a major CNG facility and conversion centres in the state.
• Akwa Ibom
The state government is yet to make a decision on whether or not to key into the CNG initiative.
Governor Umo Eno had earlier said his administration was understudying the workings of the CNG, especially as it pertains safety.
Information Commissioner Ini Ememobong said that the governor was, for now, more concerned with ensuring availability of fuel in the state
His words: “The governor sometimes ago said he was still understudying the workings of CNG and was particularly concerned about how safe it is.
“I am not aware if he ( governor) has changed his mind. Whatever decision he takes is in the best interest of the people.
“Again, the governor is concerned about the issue of having enough refilling depots across the state.”
• Benue
The commissioner for Transport , Renewable Energy and Power Omale Omale said the state was currently working to have an energy and power policy.
Omale said the ministry already had an energy data for the state.
He, however, stated that the state had long ago keyed into the CNG concept but, unfortunately, did not have the support infrastructure for it to thrive at the moment.
“Benue has keyed into the CNG concept. It is deployed in some states for test running, but unfortunately, Benue is not among the pilot states,’’ the commissioner added.
• Borno
Dauda Ilya, special adviser to Governor Babagana Zulum on Media, said the government was focusing on
Electric Vehicles (EVs) as part of the transportation overhaul for Maiduguri and surrounding areas.
Stating that the government welcomed the CNG initiative, he cited difficulties in establishing conversion plants, and securing proper storage facilities as hindrances.
His words: “Borno State Government is investing in electric buses and cars to revamp the transportation system in Maiduguri metropolis and its environs. This shift towards EV technology is seen as a practical and sustainable solution to addressing local transportation needs.
“Notable investments in EV technology include the 2024 purchase of 30 Changon E-Star electric vehicles, 500 Phoenix VH100 electric tricycles, and other electric vehicles for the Baga community.
“The government also procured electric vehicle charging terminals across Maiduguri Metropolitan Council (MMC) and Jere Local Government Area (LGA), offering highly subsidized charging rates to alleviate the economic burden on residents.”
• Edo
The CNG is being embraced by motorists with more conversion centres seen in Benin and its environs.
Although, many residents were discouraged by the October 16 explosion of a CNG-powered car in Ikpoba Hill, findings showed that they had changed their minds.
The state however has not received any CNG vehicle from the Federal Government.
• Delta
The government has commenced preliminary implementation of the policy with Governor Sheriff Oborevwori’s approval of the construction of conversion. Refill stations across the three senatorial districts.
Transport Commissioner Onoriode Agofure explained that the government was mindful of the hardship citizens endure due to the high cost of transportation.
He appealed for patience, noting that the government was committed to providing lasting relief to stakeholders in the transport sector.
• Jigawa
In Jigawa State, there is no conversation centre
However, the state Executive Council has approved N117,109,070 for the establishment of a pilot training centre at Dutse Skills Acquisition Center in Limawa.
Information and Sports Commissioner Sagir Musa said this is in line with Governor Umar Namadi’s administration’s commitment to reducing the suffering of the people.
• Adamawa
The CNG has not been deployed in Adamawa State by the Federal Government. But the state government, however, runs a mass transit scheme with vehicles that run on gas.
The Chief Press Secretary to Governor Ahmadu Fintiri, Mr Humwashi Wonosikou, said the state has no CNG-run vehicles from the Federal Government.
Gov. Babajide Sanwo-Olu of Lagos State has reaffirmed his administration’s commitment to expanding the Compressed Natural Gas (CNG) initiative in the state.
Sanwo-Olu gave the assurance at the Lagos State Government Pilot Compressed Natural Gas (CNG) Vehicle Conversion Training, organised by IBILE Oil & Gas Corporation (IOGC) at the Lagos Bus Service Limited Workshop, Yaba, Lagos.
The governor, who was represented by his Deputy, Dr Obafemi Hamzat, said the move was part of the government’s efforts to promote sustainable energy, reduce greenhouse gas emissions, and create job opportunities.
He emphasised the importance of adopting CNG as an alternative fuel.
Sanwo-Olu noted that the initiative was not just an energy solution, but a declaration of his administration’s resolve to embrace cleaner, safer, and more affordable energy systems.
The governor highlighted the benefits of CNG, including its potential to significantly reduce carbon emissions, improve air quality, and provide a cost-effective transportation alternative.
He also emphasised the state government’s commitment to demonstrating its resolve in three pivotal areas of the Greater Lagos Vision, which included energy security, environmental sustainability, and job creation.
Sanwo-Olu commended the IBILE Oil & Gas Corporation for its role in championing the initiative.
He urged participants to seize the opportunity and become ambassadors of change, carrying the message of cleaner energy to every corner of the state.
“The Lagos State Government’s commitment to expanding the CNG initiative is expected to have a positive impact on the state’s economy and environment.
“Transitioning just 20 per cent of our transportation fleet to CNG could reduce greenhouse gas emissions by tens of thousands of metric tonnes annually, significantly improving urban air quality.
“This is the scale of impact we are committed to achieving,” he said.
The governor called on all stakeholders, private sector partners, industry experts, and government agencies to collaborate with the state government in scaling the programme.
He said: “The journey to clean energy and economic empowerment cannot be undertaken alone.
“As the state government continues to invest in the infrastructure, technology, and partnerships necessary to make CNG adoption seamless and scalable, Lagosians can look forward to a cleaner, safer, and more prosperous future.”
Earlier in her address, the Managing Director, IBILE Oil and Gas, Ms Doyin Akinyanju, said the initiative marked a significant milestone in the state’s journey towards a more sustainable future.
According to her, the programme focuses on “Training Trainers” and aims to enhance manpower development for CNG vehicle conversions in Lagos State.
“This will support a seamless transition to cleaner energy and equip local technicians and mechanics with the necessary knowledge and skills to retrofit and convert conventional vehicles to run on CNG safely.”
The Managing Director disclosed that the training programme would continue till March 2025, after which the technical partner, Landirenzo, would provide technical support to trained technicians and workshop partners in Lagos State for the next 12 to 18 months.
She added that CNG vehicle initiative was expected to provide a unique “three-fold” opportunity for Lagos State.
She noted that it included reducing greenhouse gas emissions, providing a cost-effective alternative to petrol and diesel, and supporting job creation and in-country capacity development.
“To support the initiative, IBILE Oil and Gas Corporation is set to deliver four CNG refueling stations in Lagos State by the end of March 2025.
“These stations will be located at strategic locations, including LAMATA Ojota terminal, LAMATA Ajah terminal, LAWMA Ijora Depot, and Yaba.
“Additionally, 11 more CNG refueling stations are planned to be delivered between the third quarter of 2025 and the first quarter of 2026,” she said
Minister of Information and National Orientation, Mohammed Idris, said the Federal Government’s Compressed Natural Gas (CNG) initiative has opened up $175 million in private sector investments over the past year in an attempt to significantly reduce the high cost of transport and commuting in Nigeria.
Idris, in a statement shared via his official X handle, said the country has seen a major increase in CNG conversion centres, which have risen from just seven to 125 in a year, a testament to growing confidence in the country’s energy transition.
The expansion, he noted, is a key part of the government’s push to make CNG the fuel of choice for vehicles in the country.
The minister said the initiative aims to reduce transportation costs by over 60 per cent, offering a much cheaper alternative to petrol and diesel.
In addition to being cost-effective, he noted CNG is a cleaner and more environmentally friendly fuel.
He said: “One of the biggest issues in the country currently is the cost of transportation and commuting, on account of the removal of petrol subsidy. This has led to the launch and rollout of a national program to make CNG the vehicle fuel of choice in Nigeria.
“The biggest advantage is that CNG is much cheaper than petrol and diesel, and will help bring down the cost of transportation and commuting by over 60 per cent. It is also a cleaner fuel, and better for the environment. For a country as blessed with gas resources as Nigeria, CNG is a smart and welcome bet on the future.
“In the last one year the presidential CNG initiative has unlocked $175 million in private sector investments in critical infrastructure, and Nigeria now has 125 conversion centres, up from just seven a year ago.”
According to Idris, the commencement of petrol production at the Dangote Refinery has bolstered Nigeria’s energy independence.
“In September, the world’s largest single-train crude oil refinery began producing petrol for the Nigerian market, instantly rewriting the existing narrative of an oil producing country that is forced to depend exclusively on imported petrol.
“Starting this month, the Minister indicated that the Dangote Refinery will pay for crude oil supplies in Naira is a welcome decision approved by President Tinubu to bring down the cost of locally produced petroleum products,” he said.
Idris noted that besides the CNG initiative, the Federal Government has introduced the Presidential Gas for Growth Initiative designed to foster further investments and ease the transition to gas-based energy solutions.
“Also, the new Presidential Gas for Growth Initiative is implementing a zero-per cent VAT regime on a wide range of the sale of gas and gas-related equipment,” he stated.
The government, the minister underlined, is also addressing the rising costs of essential goods such as food and pharmaceuticals.
“President Tinubu has approved the temporary removal of import duties and taxes on certain essential food items, pharmaceutical raw materials, and equipment,” he added.
While these measures are expected to alleviate financial pressures, Idris acknowledged that their impact will take time to be fully felt.
“We ask for patience and understanding as the implementation is fine-tuned. The results will certainly be felt, in no distant time,” the minister said.
The private sector is partnering with the Presidential CNG Initiative (Pi-CNG) to ensure subsidised conversion of vehicles from PMS to CNG.
The Chief Executive Officer of Portland Gas Limited, Folajimi Mohammed, stated this at the inauguration of All-One Compressed Natural Gas (CNG) Reverse-Engineering, Training, Filling and Conversation Centre established by the National Agency for Science and Engineering Infrastructure (NASENI) in conjunction with Portland Gas Limited in Abuja.
“One of the President’s first initiatives was the Initiative (Pi-CNG), which was the initiative to introduce the Compressed Natural Gas. So Portland Gas-NASENI has been working in partnership with the Pi-CNG.
” They will be tasked with introducing and supplying the conversion kits and we are hopeful that the conversion kits will be supplied to us using a subsidized price while we make sure that it’s available and cheap for every average Nigerian.
“The immediate intervention we need right now is for us the private sector to partner with the government in terms of subsidized kits that will be given to us,” he said.
Mohammed is optimistic that with the take off of the reverse engineering plant in partnership with NASENI, conversion kits would be manufactured locally, which would significantly reduce the impact of the cost of conversion on Nigerians.
He noted that CNG offers a sustainable and economically viable alternative to traditional petroleum products, with the potential to bring transformative changes to the country.
“On average, a petrol vehicle consumes about 60 liters of Premium Motor Spirit (PMS) to travel 250 kilometers, costing approximately N37,020 given current fuel prices. In contrast, a CNG vehicle requires about 18 standard cubic meters (scm) of gas for the same distance, costing around N3,600
“For a 250 km drive, this translates to a significant cost saving, highlighting the economic benefits of CNG over PMS. CNG and hybrid vehicles offer better efficiency and lower emissions and by embracing CNG, we not only reduce our transportation costs but also contribute to a cleaner environment.”
Mohammed commended President Bola Tinubu for recently commissioning three new upstream gas facilities which he said would significantly boost the nation’s gas production capabilities and provide the foundation for expanding CNG infrastructure.
He said Portland is also collaborating with KIA Motors to promote the adoption of CNG vehicles in Nigeria by developing and distributing CNG hybrid models. Additionally, he said, to retrofit hybrid CNG vehicles right from the assembling point and push those advanced vehicles into the market.
According to him: “This initiative will ensure that Nigerians have access to affordable, efficient, and environmentally friendly transportation options making it easier for Nigerians to transition to this cleaner energy alternative.”
The scepticism about the CNG initiative expressed by several Nigerians, including the former SGF, Barbachir Lawal, has compelled the CEO of Mezovest, Mr Tosin Thompson, to urge Nigerians to be more optimistic about the initiative.
Thompson, while reacting to some of the scepticism in a recent interview on the radio, noted that “while the CNG initiative is not a magic bullet that immediately solves our energy problems, it is a giant step in the right direction, particularly with regards to the opportunities it will create.”
He argued the CNG initiative would have a ripple effect on the economy, freeing up disposable income from energy savings and creating hundreds of thousands of employment opportunities for both skilled and unskilled Nigerians.
He said: “Considering the energy savings estimated at over $2.5 billion a year, most of this will drive consumer spending and boost the economy. Also, look at what major local auto manufacturers like Innoson and Nord are doing by expanding their factories to manufacture CNG vehicles and several conversation sites springing up across the country. You will see the potential for significant job creation.”
Thompson commended private sector actors who are leading the charge and making investments in the sector so that the CNG initiative can work.
“While I have been a big supporter of the CNG initiative, it is equally important to commend private sector actors like Elizade Motors, Innoson, Nord, and my organization, inclusive of the investments being made to ensure this initiative’s success and boost the economy,” he stated.
The federal government, on Friday, launched the long-awaited Compressed Natural Gas (CNG) Initiative with the handing over of two CNG-fueled buses to the management of the State House.
Speaking at the official launch of the initiative at Presidential Villa, Abuja, Chairman of the Presidential Compressed Natural Gas Initiative (P-CNGi), Mr Zacch Adedeji, who performed the handing over ceremony, disclosed that the launch also involved the opening of seven pilot conversion centres nationwide.
Adedeji, who is also the Chairman of the Federal Inland Revenue Service (FIRS), further disclosed that the government has waived the Value Added Tax (VAT) on CNG purchases as well as seeking duty waivers for value-chain.
Chairman of the initiative, who was represented at the launching event by the Authority Chief Executive Officer of the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr Farouk Ahmed, also disclosed that plans are underway for the government to establish multiple conversion centres across the country in the next two weeks.
“I’m pleased to announce that there are currently seven conversion centres in Nigeria and the government is actively working to establish more of them. These plans will be rolled out, starting this afternoon, by the initiative.
“This project is not only about conversion of vehicles but also about generating employment opportunities. It demonstrates President Bola Tinubu’s commitment to both environmental sustainability and economic growth.
“Moreover, it is my pleasure as your Chief Tax Officer, a position I hold alongside as Chairman of this initiative, to announce that we will be waiving the Value Added Tax on CNG purchases as well as seeking duty waivers for value-chain.
“The goal is to build a sustainable future, leveraging our own cheap and clean energy source; gas”, he said.
Adedeji emphasized that the delivery of the CNG project demonstrates President Bola Tinubu’s commitment to both environmental sustainability and economic growth in Nigeria.
He implored Nigerians to consider the buses as a symbol of a new beginning, “a journey towards the future, where the power of tomorrow starts today. Let this be a beacon for our country, Nigeria, and an inspiration to the world”.
The Committee Chairman stressed that the buses running on compressed natural gas are not just a technical achievement, but a symbol of President Tinubu’s administration’s commitment to spearheading an energy revolution.
The Chairman of the Nigeria Governors’ Forum (NGF), AbdulRahman AbdulRazaq, said Nigeria is the eighth-largest gas-producing nation in the world and with 70%, of its hydrocarbon gas possession will strengthen the nation’s gradual transition from petrol-powered vehicles to gas–powered transit vehicles.
Gov. Abdulrazaq called on the private sector to invest in the CNG Bus programme, he emphasized that Universities in Nigeria will be the first beneficiaries of the buses and all state governments will also key into the program
This is the first major change to come. We all know that apart from having abundant gas resources, I think number eight in the world in gas reserves, gas is a cheaper means of transportation and cheaper means of energy.
“I remember former President Obasanjo established the Olokola Free Trade Zone because he wanted that zone to be powered by gas solely. So, as we transit forward, I encourage the private sector to invest in this gas programme.
“I commend the President as well because this programme, aside from kicking off at the Government House, our universities will be the first beneficiaries of the buses and all state governments will also key into this.
“Also, from my state, we’re going to invest massively and encourage our businessmen to invest massively in this transition. I can only praise Mr President that it our dreams are being fulfilled step by step.” The Chairman NGF added.
Project Director of the Presidential CNG Initiative, Engr. Micheal Oluwagbemi disclosed that State governments have already indicated investment interest in the CNG Buses, he mentioned that the Rivers State Government have already acquired a good number to ease the transportation challenges of the state.
Speaking on the Cost of Conversion, Oluwagbemi revealed that the current cost of conversion varies from the model and type of vehicle, he added that the President has ensured that as part of P-CNGi, the committee will incentivize the cost for the Nigerian populace.
The Project coordinator assured that Nigerians will be able to achieve conversion at a lower cost.
“Nigeria is a gas country with a very small quantity of crude oil, The President wants to make sure that the Nigerian public is not subjected to the price of transportation occasioned by international conflagration rather than being able to use the gas that Nigeria produces by Nigerian people such that jobs are also created at home instead of exported abroad.
“The current cost of conversion varies from the model and type of vehicle but the President has ensured that as part of PCNGI, we will look into that cost by helping and incentivizing Nigerians,” Oluwagbemi added.
He disclosed that immediately, the Federal government ordered 55000 conversion kits as part of the immediate palliative.
“Various stakeholders, such as the Labour unions, and mass transit bus operators. Either state or private will be able to benefit from those conversion kits
Receiving the CNG Buses on behalf of the State House, the Permanent Secretary, State House, Engr. Olusesan Adebiyi said that the provision of the buses will enhance the efficiency of staff and enhance their punctuality at work
He assured the P-CNGI and partners that all operational buses of the State House will be converted to gas-powered vehicles.
“For the P-CNGi, I want to assure you to prepare for us because henceforth, all the staff buses we’ll have to buy from you and I can assure you we’ll soon set out to consult you and enter negotiations with you for not just purchase, but also maintenance.
The State House has some fuel dumps and I want to assure you right away that one of our fuel dumps will be converted to CNG with immediate effect, to guarantee frequent fueling of these I’ve discussed with you as well on the issue of maintenance.
“I want to also assure you that we will agree with you because one, this is new in Nigeria, and the spares are not readily available, so why not meet the manufacturers? The fact that these buses were assembled in Nigeria, it’s all Nigeria-made, is one thing that I will not forget in a hurry because as an engineer, I’ve been praying for this to happen and now it’s happening in my lifetime.
“The provision of this bus will enhance the efficiency of our staff, will enhance their punctuality to work and will also enhance speedy delivery of service in the entire State House. Staff listen to me, you know that I don’t come late, so now you don’t have reason to come late, since buses are available to take you to work.
Managing Director of OMAA Motors, managing partner of PCNGI, Chinedu Oguegbu lauded the patronage of made-in-Nigeria vehicles by the federal government saying that it is a way of deepening industrialization
Oguegbu stressed that the deployment of the CNG buses to ease transportation challenges in Nigeria will go beyond the natural gas value chain, he added that it will create thousands of jobs for the youths.
“This is going to go beyond the natural gas value-chain, this is going to create thousands of jobs for the youths and not just like basic tech, what we’re talking about natural gas vehicles, as we progress in Nigeria and after coming up, the technology that we’ll develop here, the talents that we’ll build here, we’ll be able to use this and export to other African countries that have similar initiatives.
The Chief Of Staff to the President, Femi Gbajibiamila officially flagged off the initiative.
