The Nigerian Federal Government has announced plans to convert one million petrol vehicles to Compressed Natural Gas (CNG) by 2027.
This ambitious initiative, spearheaded by the Presidential Initiative on CNG (Pi-CNG), aims to leverage Nigeria’s abundant natural gas reserves to provide a cost-effective and environmentally friendly alternative to petrol.
The move comes in the wake of President Bola Ahmed Tinubu’s bold decision to remove fuel subsidies, a policy that had been in place since 1977.
The subsidy removal, announced on May 29, 2023, was aimed at addressing budget deficits, reducing corruption, and improving economic efficiency.
However, it also led to a significant increase in fuel prices, prompting the government to seek alternative fueling options.
Babajide Awolowo, the Strategic Business Education Adviser for the Pi-CNG program, highlighted the importance of this transition at a stakeholders’ forum organized by the Kogi State Government in collaboration with Automotive Gas Nigeria Services Limited (AUTOGAS Nigeria).
Awolowo emphasized that utilizing Nigeria’s vast natural gas reserves, estimated at 206.5 trillion cubic feet, is a logical step towards energy self-sufficiency and economic stability.
The conversion to CNG is expected to bring numerous benefits.
CNG is not only cheaper—costing between 40% to 70% less than petrol—but also safer and more reliable.
Vehicles running on CNG require less frequent maintenance, such as oil changes, compared to their petrol counterparts.
Additionally, CNG vehicles produce fewer emissions, contributing to improved air quality and reduced greenhouse gas emissions.
Engr. Michael Oluwagbemi, Director/Chief Executive of the Pi-CNG, noted that the conversion initiative could save Nigeria between $2.5 billion and $3.5 billion annually by reducing the nation’s petrol consumption by nearly 10 million liters per year.
This shift is expected to have a profound impact on Nigeria’s economy, reducing the need for petrol imports and promoting the use of domestically produced natural gas.
To facilitate the widespread adoption of CNG, the Federal Government has introduced several incentives.
These include a zero percent import duty waiver on CNG vehicles and conversion kits, as well as financial support for commercial drivers.
The government plans to cover 50% of the conversion costs for pre-qualified commercial drivers, making the transition more accessible.
Moreover, the government is partnering with private companies to establish CNG infrastructure across the country.
One notable project is the construction of a CNG Park in Ajaokuta Local Government Area of Kogi State.
This facility will localize the production of CNG accessories, including conversion kits and cylinders, thereby creating thousands of direct and indirect jobs.
The initiative has garnered support from various state governments and stakeholders.
Governor Ahmed Usman Ododo of Kogi State, represented by Dr. Folashade Arike Ayoade, Secretary to the Kogi State Government, expressed the state’s commitment to becoming a hub for CNG infrastructure.
Ododo highlighted the environmental benefits of CNG adoption, including reduced carbon emissions and improved energy efficiency.
Stakeholder engagement meetings have been held in several states, including Ekiti, Kwara, Ondo, Kogi, and Osun, to discuss the benefits and implementation strategies of the CNG conversion program.
These meetings have brought together officials, transport unions, and other key players to ensure a collaborative approach to the initiative.
The Federal Government’s plan to convert one million petrol vehicles to CNG by 2027 represents a significant step towards a more sustainable and economically viable energy future for Nigeria.
By tapping into the country’s vast natural gas reserves, the initiative aims to reduce dependency on imported petrol, lower fuel costs for consumers, and mitigate environmental impacts.
As the program progresses, it is expected to drive technological advancements, create job opportunities, and position Nigeria as a leader in the adoption of cleaner energy solutions.
With continued government support and stakeholder collaboration, the vision of a CNG-powered Nigeria is well within reach.
