By Abbas Nazil
Nigeria’s alternative fuel sector is set for a major boost as the Presidency revealed that over $491 million has already been invested in the Automobile Compressed Natural Gas (AutoCNG) market last year, aimed at reaching the $1 billion mark by the end of 2025.
This was disclosed by the Programme Director and CEO of the Presidential Compressed Natural Gas Initiative (PCNGI), Michael Oluwagbemi, during a media briefing at the Presidential Villa, Abuja.
The PCNGI, which was inaugurated by President Bola Ahmed Tinubu on October 1, 2023, aims to promote the adoption of cleaner energy alternatives such as natural gas and electric vehicles, following the removal of fuel subsidies that significantly increased transportation costs.
Since its inception, the initiative has made notable strides in expanding Nigeria’s CNG infrastructure, converting vehicles, and creating employment opportunities across the country.
Oluwagbemi revealed that the initiative has led to the creation of over 9,000 direct jobs and about 75,000 indirect jobs.
Furthermore, the capacity for converting petrol and diesel vehicles to bifuel systems has surged by almost 3,000 percent.
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From only seven conversion centres available at the start of the programme, more than 200 new centres have been established through private sector investment.
These centres have also facilitated the direct employment of over 3,000 technicians, made possible by the introduction of the Conversion Incentive Programme.
Addressing safety concerns arising from recent incidents involving CNG-powered vehicles, particularly in Benin, Edo State, Oluwagbemi attributed the issues to acts of sabotage. He assured the public that measures are in place to improve safety and monitoring.
In collaboration with the Federal Ministry of Petroleum (Gas), and key regulatory agencies such as the Standards Organisation of Nigeria (SON), National Automotive Design and Development Council (NADDC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and Federal Road Safety Corps (FRSC), a comprehensive monitoring framework is being developed for all gas-powered vehicles.
Meanwhile, during the launch of a new CNG auto conversion and Liquefied Petroleum Gas (LPG) bottling plant by AX Gas in Lagos, the Federal Government was urged to enhance support for the development of CNG infrastructure nationwide.
CEO of AX Gas, Andre Bassey, highlighted the firm’s partnership with the PCNGI, stating that it provides licences and conversion kits to accredited facilities, allowing them to offer affordable CNG services, including free conversion for commercial vehicles.
Bassey also called on the government to create a more enabling environment to facilitate the establishment of CNG refilling stations across Nigeria.
Responding to public fears of explosions, he explained that such incidents are typically due to negligence, and reassured that proper handling and regulatory oversight can ensure safety.
