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Nigeria's CNG initiative attracts $45m private investment

The Project Director and CEO, Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi (P-CNGi) yesterday said the initiative has received a boost with investors staking about $45million in the program.

He said the initiative has attracted investors in the oil and gas sector who are ready to invest in the establishment of the conversion and refueling centres across the country.

He spoke at the Nigerian Army Auto Switch flag-Off ceremony at the Nigeria Institute of Transport Technology (NIIT) in Abuja.

16 vehicles belonging to the Nigerian Army are to be converted from use of premium motor spirit (PMS) to CNG.

Oluwagbemi said the CNG conversion centres have increased from seven to 21 centers across the country, adding that the centres would increase to 45 by May 29, 2024.

He said the target of the P-CNGi is to have about 1million conversion centres before 2027 and over 3,000 refueling centres driven by 25,000 technicians.

He said: "We also have increased the number of investments in refueling centres. We will have about 100 of them before the end of the year. NIPCO is investing 32, MRS 10, BoVAS 10, the core partners of the Presidential CNG is investing over 15 centres and these have attracted $45million.”

He said to encourage investment in the sector, the P-CNGi has attracted tax and duty waivers as well as secured 80 regulatory standards by the Standard Organisation of Nigeria (SON).

The P-CNGi noted that Nigeria could not continue to depend on other countries for its energy security, assuring that Nigerians would soon start seeing the good in the fuel subsidy removal.

Minister of Transportation, Sen Said Alkali while declaring open the training and flag-Off of technicians of the Nigerian Army on the CNG auto fleet, stressed that CNG was environmentally friendly, cost effective and an alternative fuel for mobility.

He said the training of the Nigeria Army engineers was facilitated by NITT with support from the Federal Ministry of Transportation on conversion technology for a period of two -weeks.

The minister said the initiative was aimed at driving down and managing the cost of transportation for Nigerians by utilising the cheaper gas alternative that was abundant and underutilised.

He said the initiative would facilitate job creation, transfer of technology, support the development of auto manufacturing and the development of critical gas distribution, processing and production infrastructure.

Director - General, NITT, Bayero Farah said 11 Army personnel would undergo a two - week training at the organisation's facility, while 16 vehicles belonging to the Nigerian Army would be converted from use of PMS to CNG.

He said: “This gradual switch by the Nigerian Army is a very significant step as it will ultimately boost the security situation in the country, as well as inspire other agencies of government to gradually start converting their operational vehicles to CNG.

“Let me assure you that NITT will continue to do its best towards the realization of the Nigerian auto gas project. To this end, we have - with the support of the PCNG-I, successfully converted several vehicles not only here in Abuja, but also at our headquarters in Zaria. Indeed, last year, in collaboration with one of our partners; STAG of Poland, we sponsored our engineers to Poland for further training on CNG Conversion.

“We therefore remain committed and willing to partner with other stakeholders, the private sector inclusive, in this very important project, because the truth remains that; gas is the fuel of the future.

“It is hoped that the conversion and training which is being flagged off today, will offer the much-needed boost that will make CNG, as an alternative source of fuel, more attractive to other stakeholders in the Nigerian transport sector.”

Chief of Army Staff, Lt Gen Taoreed Lagbaja, who was represented by the Chief of Logistics of the Nigerian Army, Gen. Erema Akerejola, noted that the introduction of CNG would ensure cost saving measures for the Army to deploy faster and enable them channel resources to other areas thereby enhancing security of the country.

The CoAS urged Nigerians to adopt the initiative because it has been proven to work in other countries, adding that it was already working in Nigeria.