Disagreements have emerged among key stakeholders regarding the success of the Presidential Compressed Natural Gas Initiative (PCNGI), a flagship programme of the Tinubu administration aimed at easing transportation costs and promoting cleaner energy alternatives in Nigeria.
The PCNGI strongly rejected allegations against its operations, describing them as a smear campaign orchestrated by a suspended vendor, Charles Goriola Yakub of C & L Smart Energy Limited, Abuja.
Yakub’s company was suspended from the PCNGI Conversion Incentive Programme in December 2024 due to unethical practices, including the illegal sale of government-provided CNG kits at inflated prices ranging from ₦200,000 to ₦1.2 million. The PCNGI has referred the case to the Economic and Financial Crimes Commission (EFCC) for further investigation.
This is as a stakeholder in the CNG sector has expressed skepticism about the effectiveness of the PCNGI’s announced 40 per cent reduction in transportation fares on routes serviced by converted vehicles.
Industry expert Sina Kawonise criticised the transparency of the program, claiming that about 70 per cent of the listed commercial vehicles in the programme are fictitious and that conversion kits are being diverted to the black market.
During an interview with ARISE News, Kawonise voiced his scepticism regarding the government’s enforcement of a 40 per cent fare reduction, arguing that price controls had been attempted in Nigeria before, with former President Muhammadu Buhari’s 1983 efforts failing under military rule.
He also highlighted inflated costs of conversion kits compared to market prices and questioned the actual impact on transportation costs, stating that no real fare reductions have been observed despite government claims of spending over N100 billion
Technical Assistant on Stakeholder Management and Public Engagement at PCNG-i, Kenechukwu Chukwu, in a public notice on Sunday in Abuja, stated that it took decisive action by PCNG-i to sanitise the system and has since referred the matter to the Economic and Financial Crimes Commission (EFCC) for further investigation and action.
The agency revealed that the indicted vendor was suspended from the PCNGi Conversion Incentive Program in December 2024 due to unethical practices involving the illegal sale of government-provided CNG kits at inflated prices ranging from ₦200,000 to ₦1.2 million.
According to him, investigations by PCNGI was supported by video evidence and testimonies from affected operators, including reports of vehicle damage, prompting decisive action by PCNGI.
PCNGi emphasised that as an intervention programme, it does not directly award contracts or procure equipment but relies on other government agencies to maintain its focus on promotion and enablement. The Initiative reaffirmed its commitment to integrity and clean energy goals, warning that legal measures will be taken against ongoing electronic blackmail and cyberbullying by the accused party.
“The attention of the management of the Presidential CNG Initiative (PCNGI) has been drawn to a sponsored smear campaign by a group known as the Independent Conversion Sector (ICS). The individual known to be behind the group is Mr. Charles Goriola Yakubu of C & L Smart Energy Limited, Lokogoma, Abuja.
“Records show that C & L Smart Energy was part of the PCNGI Conversion Incentive Program until December 2024, when it was suspended due to sharp practices involving the sale of government kits—otherwise meant to be installed for free for commercial operators—at inflated prices ranging from ₦200,000 to ₦1.2 million. PCNGI’s investigation, supported by video evidence and documentation, was extensive. Several operators who fell victim to the fraudulent activities of Mr. Yakubu and his company came forward, with some reporting that their vehicles were also damaged.
“PCNGI took firm action to address these malpractices and has referred the case to the EFCC for further investigation. We take the integrity of this program seriously. As an intervention initiative, PCNGI does not award contracts or carry out procurement directly; it relies on other MDAs to do so, allowing it to focus on its core role of promotion and enablement.
PCNGI remains committed to its mission of providing affordable, clean transportation powered by CNG and electric vehicles, urging the public and press to disregard distractions and support the program’s goals
Meanwhile, following the announcement that 40 per cent reduction in transportation fares on routes serviced by vehicles converted by the PCNGI, Kawonise believes this is a “Nollywood Entertainment Movie ”
He argued that 70 per cent of the listed commercial vehicles in the programme are fictitious, raising concerns over transparency and effectiveness. The Presidential Compressed Natural Gas Initiative (PCNGI), launched under the Tinubu administration, was intended to diversify Nigeria’s energy mixp and reduce dependence on petrol, particularly following the removal of fuel subsidies.
Initially focused on public awareness, policymakers soon realised the high cost of CNG conversion was a major barrier to adoption. In response, the government began distributing free conversion kits to commercial vehicle operators, with hopes of reducing transportation costs, food prices, and commuting expenses.
Kawonise, a long-time participant in the CNG market before the government’s involvement, maintains that CNG is a game-changer for Nigeria’s transport sector. He highlights its superior safety compared to petrol and potential for up to 80 per cent fuel cost savings, calling it an ideal long-term solution—if managed transparently.
However, as with many public sector initiatives in Nigeria, corruption soon crept in. The government promised to provide free conversion kits to commercial vehicles to offset high entry costs. Yet industry insiders say the costs were inflated, raising concerns about financial mismanagement.
“For instance, if you check their books, you’ll see N1,050,000 listed for kits that we sell for N600,000,” Kawonise explained. “Before they paused conversions, NIPCO was offering the same kit for N750,000. Meanwhile, the government is pricing a four-cylinder conversion at N1.2 million—that’s a 60 per cent premium above market rates.”
Price inflation isn’t the only issue. The conversion kits meant for commercial vehicles have allegedly been diverted to the black market, preventing the intended beneficiaries from receiving them.
“From government records, they claim 40,000 commercial vehicles have been converted, but I assure you less than half of those actually went to commercial operators,” Kawonise stated.
Kawonise further criticised the initiative’s financial transparency, pointing out that despite government claims of spending more than N100bn, Nigerians have yet to see any tangible impact.
“At the end of the day, not a single kobo has been reduced from transport costs since this initiative began,” he said, referencing a government press release from Bayo Onanuga.
He warned that failures like this undermine the federal government’s credibility, giving the impression that its policy efforts are ineffective
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