Tag: Presidential Compressed Natural Gas Initiative

The Presidential Compressed Natural Gas Initiative (PCNGI) yesterday commissioned 40 electric powered vehicles in Abuja in order to advance the country’s clean energy transition.

The Minister of State for Gas, Ekperikpe Ekpo, who launched the buses said the rollout marks “another bold step in Nigeria’s journey towards cleaner, smarter and more sustainable mobility.”

Ekpo, who was represented by his aide, Abel Igheghe, said the initiative reflects the government’s commitment to cleaner fuels such as compressed natural gas (CNG), liquefied petroleum gas (LPG), liquefied natural gas (LNG) and electric mobility.

“This gathering is not just a product showcase; it is a statement of intent. We will continue to support initiatives that align with our clean energy aspirations.

“Electric vehicles are an important part of the future, and they will create new industries, new jobs and new opportunities for Nigerian innovators.”

READ ALSO; Christmas: 20 nice places to visit in Nigeria

He said the Ministry of Petroleum Resources will sustain policies that promote alternative fuels, deepen gas utilisation and encourage technology transfer.

“Nigeria’s clean mobility journey must be inclusive. It must deliver affordable transport options for ordinary citizens and strengthen our national emission-reduction targets,” he said.

In his remarks, the Executive Chairman of PiCNG, Ismael Ahmed, said the initiative is focused on delivering affordable and reliable mobility for Nigerians.

“This is clean energy. This is affordable energy. This is available energy. What matters is the ordinary Nigerian — the person in Kano, Zanya, or Daura whose transportation costs must come down,” he said.

Ahmed said PiCNG will power charging stations with CNG to address concerns about electricity supply.

“We have sunlight, we have gas, and we will use them to deliver cheaper and cleaner mobility,” he said.

He added that the 40 newly unveiled electric buses demonstrate President Bola Tinubu’s commitment to providing affordable, reliable and cleaner transportation across the country.

“This bus is not just for showcase. It will be deployed within the week, and Nigerians will begin to see it in several states offering cheaper transportation, especially during this festive season,” he said.

PiCNG also reaffirmed its partnership with private investors to expand charging infrastructure nationwide, including plans for more stations along major transport corridors.

Earlier at a press briefing in his office, the PiCNG chairman announced the launch of Pi-CNG 2.0, the next phase of Nigeria’s clean mobility transition.

Ahmed said the Initiative, originally created to cushion the impact of fuel subsidy removal, has evolved into a catalyst for national energy transformation.

“From the onset, the mandate was clear provide relief from rising transport costs, deepen gas utilisation, stimulate jobs and catalyse economic growth,” he said.

He highlighted key achievements over the last 20 months, including activation of CNG value chains in 28 states, establishment of more than 58 refuelling stations, deployment of thousands of NGV buses and tricycles, onboarding of over 300 automotive conversion partners, training of more than 6,000 Nigerians — including 150 armed forces personnel and 220 women in Kano — and securing more than $2 billion in investment commitments.

Other milestones include progress toward local manufacturing of CNG equipment at the Ajaokuta Industrial Park, strengthened gas-supply infrastructure across the northern corridor, partnership with the Niger Delta Development Commission (NDDC) to expand CNG stations in the Niger Delta, and activation of the national electric-mobility programme.

Ahmed confirmed that the Kano State CNG launch will hold in the first quarter of 2026 with President Tinubu expected to attend.

As Pi-CNG enters its 2.0 phase, he said the focus will remain on availability, affordability, and acceptability of clean-energy mobility solutions.

“Our mission is unwavering: to build a resilient, multi-energy transport ecosystem that lowers transport costs and positions Nigeria as a continental leader in clean mobility,” he said.

The Presidential Compressed Natural Gas Initiative (PCNGI) is aiming to attract $1 billion in investments into Nigeria’s alternative fuel sector by the end of this year.

The initiative’s Project Director and Chief Executive Officer, Engineer Michael Oluwagbemi, who disclosed this yesterday while speaking at the State House in Abuja during the “Meet the Press” engagement with journalists, expressed confidence that the ambitious investment target is well within reach, citing recent progress in the sector.

Oluwagbemi also said the PCNGI had secured over $491 million in private sector investments within the past one year to boost the Automotive CNG sector.

The PCNGI, launched by President Bola Tinubu on October 1, 2023, is aimed at facilitating the adoption of CNG and electric vehicles (EVs) in Nigeria, as a response to the removal of fuel subsidies and the rising cost of transportation.

“We’ve set a goal of about $1 billion of investment for ourselves this year. I think we have made appreciable progress towards achieving that. If I just take the hundred additional NNPC investments in daughter stations that’s close to $50 million, and the $27 million arrested, we’re already close to $100 million in the last one month alone,” Oluwagbemi said.

According to him, continued growth in investment inflows could see the initiative surpass its target, saying “so if I’m doing about $100 million a month, I think I will be close to $1.2 billion by the end of the year. So yes, I think I’m confident we’ll hit our $1 billion goal.”

Read Also: The audacity of insecurity

Oluwagbemi also provided updates on the initiative’s infrastructure expansion, particularly in the areas of refueling and conversion capacity.

“We have a goal of having 500 conversion centers set up this year. To have a total of 500 conversion centers at the end of the year means an additional 300 are supposed to be set up this year,” he said.

He added that the expected increase in conversion centers will significantly expand Nigeria’s capacity to transition vehicles from petrol to gas.

“That will increase our conversion capacity from about 65,000 a year currently, to about 250,000 to 300,000 a year at the end of this year. So it will also be a significant boost for conversions,” he noted.

Speaking further, Oluwagbemi revealed that PCNGI has attracted more than $491 million in private sector investments within the past year.

Oluwagbemi described the milestone as the most important achievement of the initiative to date, noting that it followed extensive stakeholder engagement and public awareness campaigns from May to November 2024.

“We have attracted over $491 million of investments in the past year to AutoNG and we are very proud of it. This has created over 9,000 direct and 75,000 indirect jobs,” he said.

According to him, the initiative is not only helping to reduce the cost of living but is also boosting job creation, driving industrial investments, and promoting environmental sustainability.

He stated that Nigeria’s vehicle conversion capacity had increased dramatically—by almost 3,000 percent—thanks to private sector investments that established more than 200 new conversion centers, up from just seven at the start of the program.

“This has directly employed over 3,000 new technicians as a result of the Conversion Incentive Program,” he added.

The Conversion Incentive Program (CIP), which was introduced in response to cost-of-living protests in August 2024, is targeted at converting one million vehicles—primarily public and government-owned—either for free or at subsidized rates.

So far, about 22,000 conversion kits have been delivered, with 10,000 conversions expected to be completed by the end of the current quarter.

“We’ve also expanded the program to allow deep discounts for public servants and will soon launch a financing initiative in collaboration with Credit Corp and public sector unions,” he revealed.

Oluwagbemi also highlighted the procurement of 655 CNG and EV buses through the Federal Ministry of Finance.

Of these, 421 CNG buses and 36 EV buses have been delivered, with 405 already deployed under various government and commercial transport schemes.

“The Renewed Hope Mass Transit scheme launched during the Yuletide has continued commercially and will soon be expanded to tricycles,” he noted.

Responding to recent concerns over fuel availability, Oluwagbemi said the PCNGI had launched a Last Mile Gas Infrastructure scheme to support refueling needs and ease pressure caused by increased CNG adoption.

“We are providing equipment at cost to key conversion centers and refueling partners, with 25 sites targeted and 15 states slated for coverage. The first site in Kwara is already live,” he said, adding that the initiative is expected to reach 17 states by June and expand to 24–30 states by the end of the year.

To complement government efforts, private partners including the Nigerian National Petroleum Corporation Limited (NNPCL), NIPCO, Bovas, AY Shafa, and others have begun constructing over 150 new refueling stations across the country.

He further announced plans to launch a Diesel Conversion Program later this year, noting its potential to reduce food and goods transportation costs by up to 80 per cent.

In line with capacity development goals, PCNGI is also collaborating with the Federal Ministry of Education and the Midstream and Downstream Gas Infrastructure Fund to introduce discounted CNG services and transportation in 20 federal universities, while turning the campuses into hubs for technician training and gas infrastructure development.

To ensure safety, the initiative is working with regulatory bodies to launch the Nigeria Gas Vehicle Monitoring System (NGVMS), which will track and certify CNG and gas-powered vehicles.

“Only properly converted or inspected vehicles will be allowed to refuel and operate, enforced by NMDPRA and FRSC,” he assured, noting that the sole safety incident recorded so far was due to illegal fabrication and has been addressed.