Tag: CNG

Lagos State government has stressed the importance of converting diesel vehicles to run on compressed natural gas (CNG).

It made this known at a national workshop it held in Victoria Island under the Presidential Compressed Natural Gas Initiative (P-CNGi).

The Fuel with CNG Diesel Retrofit Programme workshop brought together top government officials, leaders in the automotive industry, environmental experts, fleet operators, and green technology innovators.

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Coordinator of the P-CNGi Initiative, Michael Oluwagbemi, an engineer, said: “We are not just retrofitting engines—we are reimagining Nigeria’s energy future. Our goal is to cut emissions, reduce urban air pollution, and build a resilient green economy through sustainable mobility solutions.”

The event featured practical training for auto technicians, as well as panel discussions on key issues such as regulatory frameworks, infrastructure needs, and financing models for CNG conversions.

Participants lauded the workshop’s hands-on approach and its alignment with Nigeria’s climate goals. Many described it as a timely intervention that could transform the country’s road transport landscape and reduce the strain caused by diesel dependency.

The workshop forms part of engagements by P-CNGi to fast-track the adoption of CNG as a safer, cleaner, and more affordable energy alternative.

Lagos State  has hosted a national workshop under Presidential Compressed Natural Gas Initiative (P-CNGi), focusing on retrofitting diesel-powered vehicles to run on Compressed Natural Gas.

Held at Landmark Towers, the 2025 Fuel with CNG Diesel Retrofit Programme Workshop brought together top officials, industry leaders, environmental experts, fleet operators, and green technology innovators.

Coordinator of P-CNGi Initiative, Michael Oluwagbemi, said the workshop demonstrates Federal Government’s commitment to decarbonising the transport sector while boosting job creation and improving public health.

“We are not just retrofitting engines—we are reimagining Nigeria’s energy future,” Oluwagbemi said. “Our goal is to cut emissions, reduce urban air pollution, and build a resilient green economy through sustainable mobility solutions.”

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The event featured practical sessions for auto technicians, as well as panel discussions on regulatory frameworks, infrastructure needs, and financing models for CNG conversions.

Participants lauded the workshop’s hands-on approach and its alignment with Nigeria’s broader climate goals. Many described it as a timely intervention that could transform the country’s road transport landscape and reduce the economic strain caused by diesel dependency.

The Lagos workshop is a series of engagements by P-CNGi to fast-track the adoption of CNG as a safer, cleaner, and more affordable energy alternative in Nigeria.

• Policy to reduce commuters fare by over 40%

The Federal Government yesterday said it is working on reducing the energy cost for commercial vehicle drivers that convert their vehicles from petrol to Compressed Natural Gas (CNG) by over 90 per cent.

Programme Director/Chief Executive, Presidential CNG Initiative (P-CNG), Michael Oluwagbemi, who spoke during the launch of first CNG Conversion Centres in Mile 2 Motor Park in Lagos, said the move would further translate to over 40 per cent reduction in transport fares for commuters.

He noted that although several conversion centres already exist across the state, the Mile 2 facility is the first to be located within a motor park.

He stated that it was a significant step towards decentralising conversion infrastructure and bringing the process directly to commercial drivers. According to him, “This is the first conversion centre in a motor park accredited by P-CNGi, and similar facilities will be rolled out across all local governments in Lagos. We are making it easier for vehicle owners, particularly commercial operators to access the CNG conversion process, which is at no cost to them.”

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Oluwagbemi explained that the strategic objective is to enable drivers to reduce fuel expenditure drastically and ultimately reflect the savings in reduced passenger fares. He added that while the full implementation of fare reductions may take time due to existing infrastructure gaps and hybrid fuel usage, targeted enforcement would begin at parks that achieve significant CNG adoption levels.

“If a park like Mile 2 reaches appreciable CNG adoption, we will implement fare reductions in collaboration with the National Union of Road Transport Workers (NURTW),” he said.

Oluwagbemi further noted that to support the anticipated surge in demand for natural gas, the Nigerian National Petroleum Company (NNPC) Limited will roll out 100 CNG refueling stations over the next 18 to 24 months. He added that private sector operators such as NIPCO, Bovas, and Greenville have already commenced deployment of supporting infrastructure across the country.

He also highlighted the employment and training benefits of the programme. “Over 10,000 jobs have already been created, with 132 accredited conversion centres enrolled under the Technical, Vocational, and Entrepreneurship Training (TVET) programme,” he said, adding that a nationwide P-CNGi Basic Awareness Training would begin in the second half of the year.

While acknowledging that full enforcement will be phased, Oluwagbemi maintained that the process has already commenced. “Our first step is to make conversion accessible and free, and then bring in affordable gas refueling infrastructure. Once that’s in place, we’ll fully enforce fare reductions.”

State Secretary of the Lagos chapter of NURTW, Usman Teslim, described the initiative as timely and pragmatic.

The Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, on Thursday, launched the deployment of the Compressed Natural Gas (CNG) fuelled buses to university campuses.

The deployment of the buses at the Yakubu Gowon University, Abuja, was a take-off of what the Federal Government has tagged “Project CNG Special Palliative Relief for Universities Transportation (SPROUT), which will be replicated in other universities across the country to mitigate the cost of transportation.

Ekpo said, “I hereby commission the ‘Project CNG-Sprout’ buses for deployment to university campuses across the country.

“May they serve as vehicles not just of transport, but of hope, relief, and national progress.”

He described the “Project CNG-Sprout” as “a bold and thoughtful initiative to provide Special Palliative Relief through compressed natural gas-powered buses for university transportation in Nigeria.”

The minister said that as Nigeria navigates the pathway of energy reform, economic adjustment, and transition to cleaner fuels, the need to cushion the impact on the most vulnerable populations, including the student community, remains a key national priority.

He added that Project CNG-Sprout is a direct, thoughtful, and timely response to that need.

The project, which was through the Midstream and Downstream Gas Infrastructure Fund (MDGIF) was in partnership with FEMADEC, which the minister extolled for its timely completion.

He said President Bola Ahmed Tinubu has made a firm commitment to prioritise energy affordability, security, and environmental responsibility.

The minister said the commissioning is a direct demonstration of that commitment in action.

 Through the Presidential CNG Initiative, according to him, the government is not only mitigating the impact of recent subsidy reforms but also laying the foundation for a modern, gas-driven transport economy.

He said the “Project CNG-Sprout” introduces university students to a new era of affordable, safe, and environmentally friendly public transport powered by Nigeria’s abundant natural gas resources.

Ekpo said it is a powerful example of how policy can intersect with real, tangible impact in the lives of everyday Nigerians.

Read Also: Lagos transport commissioner flags off CNG conversion training for students

The minister said the students are the heartbeat of the initiative of the project, adding the government will continue to ensure they have affordable, clean water for innovation.

He said in the next few months, the government will be launching the CNG vehicle conversion, expanding fueling infrastructure and supporting local assembly and innovation in the value chain.

“In the coming months, we will be unveiling further incentives for CNG vehicle conversion, expanding refuelling infrastructure, and supporting local assembly and innovation in the CNG value chain. This is not just a transport solution, it is a jobs and industrialisation pathway,” said the minister.

Speaking, the MDGIF, Managing Director, Mr. Oluwole Adama, commended President Tinubu for constituting and inaugurating the Fund Governing Council in January and March 2024, respectively. He said the President’s executive steer and the support cannot be easily quantified.

He stressed that Initiatives such as the “Oil and Gas Companies (Tax Incentives, Exemptions, Remission etc.)”, termed as “Executive Order 40” to unlock investment in the gas sector through fiscal incentives, and the “Presidential Initiative on Compressed Natural Gas (PiCNG)” to provide financial incentives for CNG conversion and promote its use is commendable and has made the MDGIF’s job easier.

He was grateful to the Minister of Education, Dr. Maruf Olatunji Alausa, for coordinating and bringing together the Vice Chancellors to not only support the Project but also see it as part of their key performance indicators.

Continuing, he said, “Investing in 20 CNG refuelling infrastructures in 20 Federal Universities over a short period is a difficult task.

“As we unveil the first four facilities, i.e. this one here at the University of Abuja, and three others located at the Obafemi

Awolowo University, Ife, Osun State, Ahmadu Bello University, Zaria, Kaduna State, and the Federal University of Technology, Owerri, Imo State, we must congratulate FEMADEC Energy Limited for this feat, and many more to come.”

Adama said the Fund shall continue to prudently invest in economically valuable and viable projects that seek to increase the domestic consumption of natural gas in Nigeria, encourage investment in other midstream and downstream gas infrastructure, including catalysing other businesses, and monetise flare gas.

According to him, to achieve these, the MDGIF will continue to implement clear and consistent procedures for investment deal origination and project development; ensure a coordinated approach to investment planning, transaction advisory services, and prioritise investments in ventures with the highest potential for economic returns and value creation.

Speaking, the Presidential Compressed Natural Gas Initiative (PCNGI) Chief Executive Officer, Engr. Michael Oluwagbemi revealed that through the strategic partnership between the Presidential CNG Initiative, the MDGIF, the Federal Ministries of Petroleum (Gas) and Education, PCNGI is delivering more than just buses and tricycles.

He noted that the Initiative is delivering hope, innovation, and a future-forward solution to the mobility and energy challenges facing our academic communities in line with the vision of the President.

He recalled in his first address after May 29, 2023, that the President indeed promised to deploy CNG buses and particularly on our campuses.

He stressed, “We are here fulfilling that promise after doing the needful to build awareness and an ecosystem for CNG in Nigeria.”

…explains efforts being made to cut transport fares

…hints of domestic gas market framework to enable wider gas distribution 

As Nigerians continue to raise concerns about high transportation costs despite the increasing deployment of Compressed Natural Gas (CNG)-powered vehicles, the Presidential Compressed Natural Gas Initiative (PCNGI), has assured that steps are underway to address lingering supply challenges and ensure Nigerians feel the full impact of government investment in cheaper fuel alternatives.

Speaking in response to public frustration over commercial drivers allegedly charging excessive fares even after converting to CNG, Programme Coordinator of the PCNGI, Michael Oluwagbemi, emphasised that the initiative is progressing in phases from adoption to accessibility and that enforcement of fair pricing would only be effective once gas supply becomes stable and widespread.

“It would not be entirely correct if I penalize somebody that already has conversion done but cannot have access to gas and force him to do transportation at a lower cost. We are working on gas availability. I think I want to solve one problem at a time”, Oluwagbemi explained. 

According to him, while the federal government has already tackled issues of adoption and awareness, the current focus is to ensure gas accessibility. 

He disclosed that in collaboration with the Gas Aggregation Company of Nigeria (GACN), a major milestone is on the horizon: “In the next two weeks, we’re going to launch the Domestic Gas Market Framework that will enable gas to be delivered to daughter stations at a concessionary price approved by Mr. President.”

Oluwagbemi projected that within two to three months of launching the framework, the availability of CNG in the market would significantly improve. This, he said, would open the door for more assertive regulatory actions.

Read Also: Presidential CNG Initiative vows to resist blackmail, intimidation 

“Once gas becomes more available, we can confidently say, ‘Okay, fine,’ and begin enforcement. If you’re on CNG and you have gas, you’re probably enjoying it at a lower price — then there’s no excuse for excessive fares,” he said.

In the meantime, PCNGI is relying on what Oluwagbemi described as “passive enforcement” and “moral suasion.” 

He revealed that discussions are ongoing with ride-hailing platforms such as Uber and Bolt to encourage CNG vehicle operators to reduce fares, considering the benefits they enjoy under the initiative.

“We’re working with Uber and Bolt… to say, look, if your vehicle is on natural gas, can you please drop your price, based on the fact that we have given you a government benefit?” he said.

Beyond the ride-hailing ecosystem, PCNGI is also engaging with key stakeholders in the conventional transport sector. 

“We are working with NURTW, RTEAN and NARTO to do the same thing in their parks, but it’s on a park-by-park basis, based on the level of CNG penetration within that park,” Oluwagbemi noted.

He further revealed that a notable breakthrough was also recorded in Abuja, where the Painted Taxi Association of Nigeria (PTAN) has pledged to offer reduced fares for CNG-compliant vehicles. 

“PTAN just announced on Monday that they are going to be giving us a significant discount here in Abuja, and I think that’s a good thing,” he added.

While full regulatory enforcement is still in the future, Oluwagbemi maintained that the current phase — dubbed “voluntary enforcement” — lays the groundwork for more assertive actions. 

“Once we have sufficient penetration of CNG, we’ll be able to go to the kind of more enforcement-enforcement. But again, this thing takes time. I don’t want us to lose confidence,” he said.

The PCNGI, a flagship initiative under President Bola Tinubu’s administration, aims to reduce Nigeria’s dependence on costly and environmentally harmful fuels, by promoting the use of cleaner and more affordable natural gas across the country’s transport sector.