By Adaobi Rhema Oguejiofor
Since the removal of fuel subsidies and the increase in the pump price of Premium Motor Spirit (PMS) otherwise known as petrol, by over 300 per cent, the government has made efforts to alleviate the burden on citizens. In a bid to achieve this, President Bola Ahmed Tinubu has made available, Compressed Natural Gas (CNG) for vehicles at N230 per litre, to offer Nigerians an affordable alternative to petrol and diesel.
In a statement signed by the Project Director of the Presidential Compressed Natural Gas Initiative (PCNGi), Michael Oluwagbemi, it was noted that the move reflects President Tinubu’s commitment to reducing the cost of living for Nigerians, particularly following the recent removal of fuel subsidy.
According to the statement, PCNGi promised to deliver wide-reaching economic relief, especially to those who are dependent on the transport business as their major source of livelihood. It added that President Tinubu also ordered the distribution of one million free CNG conversion kits for commercial vehicles across the country as part of this transformative initiative.
Available data disclosed that these conversion kits, along with free installations, will be rolled out over the next 18 months, allowing commercial transporters to easily transition their vehicles to CNG.
The statement highlighted that the introduction of CNG, which is not only a cheaper alternative but also a cleaner and more sustainable fuel source, aligns with the government’s energy diversification agenda. Therefore, the first phase of PCNGi kicked off with the distribution of 10,000 free conversion kits with transport operators’ vehicles as the main target. These kits will be available through key national transport associations, such as the National Union of Road Transport Workers (NURTW), Moove, UBER, and the Kaduna State Transport Authority (KSTA).
With this transition, drivers will not only cut their fuel costs significantly but also reduce expenses for passengers and goods transporters. The conversion process will be managed in partnership with NIPCO Gas, which has already set up a network of authorized conversion centres across Nigeria. These centres will provide the necessary infrastructure to support a seamless transition for vehicles switching to CNG.
The government aims to distribute about one million conversion kits by 2025, ensuring that the nation’s commercial transport sector is well-positioned to embrace CNG and reduce its reliance on costly petrol and diesel. This initiative promises immediate economic relief for Nigerians, while also advancing cleaner energy practices.
Oluwagbemi noted that “For more information on conversion centres and to access the list of active centres, Nigerians are encouraged to visit the official PCNGi websites. This initiative is a critical component of President Tinubu’s broader vision for a resilient and economically sound Nigeria, offering practical solutions to soaring fuel prices while promoting sustainable energy alternatives.”
In a more recent development, PCNGI signed separate deals with 75 conversion firms nationwide as part of the government’s policy towards reducing addiction to petrol and diesel. The agreement covers eight states with expansion set for nine additional states in eight weeks.
Oluwagbemi expressed that in the last 45 days, the initiative has been able to distribute over 6,000 to 7,000 conversion kits, stressing that the PCNGI was expecting an additional 12,000 kits in the next 30 days, which will enable it to get more conversions done by the end of this year. He stated that there will also be an additional 100,000 to 250,000 kits before the end of Q1 next year.
The PCNGI Boss pointed out that the initiative will enable the government to hit the goal of 150,000 direct conversions in the next one year, explaining that there were only seven conversion centres in Nigeria when the scheme started. “I am pleased to announce to you that today there are over 130 conversion centres in the country as a result of our work. And before the end of the year, we have an additional 120 to get to about 250 before the end of this year,” he stressed.
With regards to refuelling, Oluwagbemi noted that when the programme started, Nigeria had only 13 centres, with most of them concentrated in Benin, where there was previously a pilot done by the Nigerian National Petroleum Company (NNPC) Limited in 2017. According to him, presently, there are about 55 fueling stations and an additional 15 before the end of the month, with the planned deployment of about 500 CNG buses this year and the release of 80 so far. He stressed that the programme cannot be activated overnight in every state because of the limitation in terms of dispensers, which will take time to get to some sub-nationals.
Oluwagbemi stated that the balance of some equipment was being assembled by local manufacturers because the shipping routes from China and from India as well as other countries were blocked as a result of the Yemen crisis in the Middle East, thereby slowing down importation.
“In some of the states in Nigeria, there is CNG capacity, but they do not have dispensers. So we are working with the governors, we are working with the local industries to ensure these dispensers are made available to them, either through our programme or through the investment of private sector investors.
“These dispensers are not manufactured in Nigeria at the moment. We are also enabling local manufacturers and capacity to ensure that we get it across to them. But we want to ensure the President’s promise to the Nigerian people that we will move them to a cleaner, safer, more reliable gas future. Our nation has been subsidizing petrol for between $8 billion to $10 billion consistently in the last 15 years, and every single dollar of that $8 billion to $10 billion has been borrowed, while we as a country in the same period, just in the last five years, we have burnt and flared $12.5 billion worth of gas,” he added.
The PCNGI Chief Executive stated that there would be 100,000 direct jobs that would be created while 25,000 technicians would be enabled across 1,000 conversion centres as well as over 2,300 refuelling stations.
Speaking on how Nigerians will be able to know commercial vehicles powered by CNG to benefit from the lower fares, Oluwagbemi pointed out that it is usually indicated on the buses. He explained that some of these buses still run partially on petrol. According to him, as soon as every state has CNG capacity, the policy of not registering petrol or diesel vehicles for industry or commercial use would be looked into just like what is obtainable in India, for example.
