Federal Gov’t Faults Criticisms Against CNG Initiative, Insists It’s Cost Effective

The federal government has responded to recent criticism of the Presidential Compressed Natural Gas (CNG) Initiative, emphasising the programme’s role in reducing fuel costs and creating economic opportunities across the country.

Following an editorial from The Punch that raised concerns about the initiative’s implementation, the government issued a detailed statement clarifying what it described as “misinformation.”

Since its launch by President Bola Tinubu, the CNG programme has aimed to alleviate the financial pressure caused by the removal of the petrol subsidy, offering Nigerians a cleaner and cheaper alternative fuel source.

“This initiative is a direct response to the high cost of petrol and its impact on transportation expenses,” said Engr. Michael Oluwagbemi, Project Director and CEO of the Presidential CNG Initiative (PCNGI). “The CNG option offers a 60% reduction in fuel costs for many Nigerians who are already converting their petrol-powered vehicles.”

According to government data, over 100,000 vehicles have been converted from petrol to CNG/bi-fuel, and more than 140 conversion centres have been established nationwide.

He criticised The Punch for stating that only 50 centres were operational, describing this as “an obvious attempt at mischief.” He added, “Facts are sacred, and it’s important for the public to know that we have made substantial progress.”

Oluwagbemi also highlighted the economic benefits of the CNG initiative, noting that the project has already attracted over $200 million in private investment and created thousands of jobs.

“This initiative is not only reducing fuel costs for everyday Nigerians but also opening up economic opportunities along the entire value chain,” he said.

Responding to concerns about the ease and cost of vehicle conversion, the government assured Nigerians that the process is free for commercial vehicles under the President’s Conversion Incentive Program.

“The program is designed to convert one million commercial vehicles to CNG/bi-fuel over the next three years at no cost to the vehicle owners,” said Oluwagbemi.

He cited statements from the National Union of Road Transport Workers (NURTW), whose members have benefited from the program, affirming the government’s commitment.

He also dismissed The Punch’s claim of a “conversion explosion” in Edo State as misleading, clarifying that the incident involved uncertified, substandard CNG cylinders used during refuelling. “CNG is a safe and reliable energy source,” the statement read, “and it is significantly less explosive than petrol or diesel.” The government further emphasised that CNG’s safety profile aligns with international standards, noting successful adoption in countries like Egypt, India, and Iran.

Oluwagbemi pointed out that the adoption of CNG by government agencies demonstrates the administration’s commitment to leading by example.

“The Nigerian Army, Police, and other ministries have already transitioned to CNG,” he said. “President Tinubu has issued directives that only CNG-enabled vehicles be purchased by government institutions moving forward.”

Addressing The Punch’s suggestion that banks could help finance vehicle conversions, the government welcomed the idea, adding that it is already partnering with financial institutions through the Credit Access for Light and Mobility (CALM) program.

“This initiative enables civil servants and private sector employees to access loans to convert their vehicles to CNG,” Oluwagbemi explained.

The government stressed the importance of responsible reporting from the media and highlighted the role of accurate information in supporting national progress.

“We are open and willing to work with the media to advance the benefits of the CNG initiative for all Nigerians,” the statement concluded.