By Adaobi Rhema Oguejiofor
The Federal Government has set plans in place to establish industrial parks for the production of kits and other components currently being imported for the conversion of vehicles to run on compressed natural gas (CNG). The Chief Executive Officer (CEO) of the Presidential Compressed Natural Gas Initiative (PCNGI), Engr. Michael Oluwagbemi disclosed this at a training workshop organized by the Nigeria Auto Journalists Association (NAJA). Oluwagbemi said that the Federal government would vigorously pursue the project with the firm belief that the CNG revolution is a catalyst for Nigeria’s industrialization. He noted that the government had identified some manufacturers of the components needed for CNG vehicle conversion who are interested in establishing their plants in Nigeria.
According to him “We do not want to replace the importation of fuel with the importation of equipment. In the government’s ambitious mission to convert a million commercial vehicles in three years there lies an opportunity to establish local production of these conversion kits and their components. As such we are in advanced stages of preparation to set up industrial parks where CNG-related equipment, materials, and components are produced.
“We have identified the central and well-suited Ajaokuta Steel Complex for the first of these parks. We have identified manufacturers of conversion kits, cylinders, and even tricycles who have all indicated interest in establishing facilities to assemble or produce from scratch.”
The PCNGI CEO expressed that the initiative will push forward the demand for foreign exchange and boost the economy, adding that it would also create job opportunities for the youth, provide skilled labour, and eventually bring in foreign exchange as it begins to generate export capacity. Oluwagbemi emphasized that Nigeria is more of a gas than an oil country, noting that the adoption of CNG as a primary fuel source for vehicles would offer a tangible, immediate gain for all Nigerians.
“CNG allows us to decrease our reliance on imported fuels and build a more resilient energy future. By using CNG, vehicle owners will see a reduction in fuel costs of up to 50 per cent, which is especially critical for drivers who rely on their vehicles for income and transport.
“Additionally, CNG-powered vehicles are known for significantly lower maintenance costs. Unlike petrol and diesel, CNG burns cleaner, resulting in fewer engine deposits and less frequent oil changes, ultimately extending the life of vehicle engines and reducing repair expenses,” he explained. Oluwagbemi further disclosed that the Federal Government was determined to drive the CNG vision to achieve maximum success. He said apart from injecting $250 million in the past 12 months, the government was also collaborating with financial institutions for easy access by motorists. He listed InfraCorp, Bank of Industry (BoI) and Development Bank of Nigeria (DBN) as some of the financial institutions that the government was working with to ease the conversion costs for vehicle owners. The PCNGI Boss noted that the government planned to convert about a million petrol and diesel-powered-engine vehicles to CNG-powered vehicles by 2027. He assured Nigerians of the safety of CNG-powered vehicles either obtained from credible auto firms or converted at any government-approved centres. He also assured that the Standard Organization of Nigeria (SON) and the National Automotive Design and Development Council (NADDC) had been part of the safety and standard regulations for the project. He specifically said SON had provided over 80 standards on the CNG, while the NADDC is in charge of the conversion centre accreditation and conversion kit certification. Oluwagbemi commended NAJA for organizing the event and its consistent commitment to informing and educating the public about advances in the nation’s auto industry. He particularly noted that the theme, ‘CNG/LPG/EV Initiative: Challenges, Sustainability, Opportunities, Alternatives to Fossil Fuels in Nigeria’ was timely, speaking not only to the nation’s energy and environmental goals but also to a larger economic vision.
