Nigeria’s CNG Drive Gets $491m Private Sector Boost

The Presidential Compressed Natural Gas Initiative (PCNGi) said it has secured over $491 million in private sector investment to boost the country’s Compressed Natural Gas (CNG) initiative targeted at reducing reliance on petrol and diesel.

Programme Director of PCNGi, Engr. Michael Oluwagbemi disclosed this during a media parley at the State House in Abuja on Monday, stating that the investment, attracted within one year has also created over 9,000 direct and 75,000 indirect jobs across the country.

Oluwagbemi said the initiative, launched to cushion the impact of fuel subsidy removal, has led to 3,000 per cent increase in the nation’s capacity to convert vehicles from petrol or diesel engines to bi-fuel CNG systems.

According to Oluwagbemi, the number of conversion centres has also grown from seven to over 200 nationwide.

“We are on course to achieve 10,000 vehicle conversions by the end of Q1 2025,” Oluwagbemi said. “Already, 405 CNG buses have been deployed in line with agreements reached during wage negotiations with organised labour.”

Addressing the shortage of CNG refuelling outlets, Oluwagbemi said the newly launched Refuelling On-Lending Programme would enable key conversion centres and gas retailers to access critical equipment at cost.

He added that the initiative plans to expand CNG coverage from five states to 17 by June 2025, with 25 sites expected to go live.

“The first site in Kwara State is already operational. Before May 1, sites in Kogi, Ekiti, Rivers, and Abuja will go live. By June 12, Kaduna, Abia, and Enugu will join, followed closely by Niger, Kano, and Benue,” he said.

According to him, over 150 new refuelling stations will be deployed in the next 18 months, in partnership with private investors.

The NNPC has already deployed 12 stations, with eight more coming before the end of this quarter. He added that approval has been secured for 100 more over the next two years.

Speaking on safety concerns, especially following the 2024 illegal CNG cylinder explosion in Benin, Edo State, the PCNGi boss said the Nigerian Gas Vehicle Monitoring System (NGVMS) would be launched within the next 60 days to ensure only certified vehicles are refuelled.

“Let me be clear, the Benin incident was caused by economic saboteurs who engaged in illegal fabrication of CNG cylinders. They were arrested, and with NGVMS in place, such incidents will be avoided,” he said.
He noted that the system will track gas vehicles, ensure compliance with safety standards, and allow only verified conversions to operate.

The PCNGi is working with agencies including the Standard Organisation of Nigeria (SON), the Federal Road Safety Corps, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to operationalise the system before year end.

Oluwagbemi acknowledged the growing demand for CNG as a result of the government’s awareness campaigns and cost-saving incentives to private sector operators.

He, however, admitted that there were delays in infrastructure rollout in some areas, leading to long queues.

“We are aware of the queues and gaps at the last mile, but we assure Nigerians that this is temporary. Our pipeline of infrastructure is strong, and the private sector is on board to scale quickly,” he said.