… says CNG allows us to build a more resilient energy future

        … as FG injects $250m, targets 1million conversions in 3 years

With the cost of Premium Motor Spirit (PMS) popularly known as petrol skyrocketing, the Presidential Compressed Natural Gas Initiative (PCNGI) has continued to preach the gospel of migration from PMS to Compressed Natural Gas (CNG) saying that it brings a reduction in fuel costs of up to 50 per cent.

The CNG Initiative is part of a nationwide vision to harness Nigeria’s abundant natural gas reserves for national development. Nigeria ranks among the world’s top countries in gas reserves, yet this potential remains underutilised within the nation’s borders.

With the CNG programme, the PCNGI is working to ensure that Nigeria’s wealth in natural gas translates into tangible, direct benefits for every Nigerian, from lower fuel costs to better air quality and beyond.

Speaking at the Nigeria Association of Auto Journalists (NAJA) on Thursday October 31, 2024, CEO PCNGI, Engr. Michael Oluwagbemi, stated that the transition from PMS to CNG speaks not only to the nation’s energy and environmental goals but also to a larger economic vision, one in which all Nigerians can benefit from a safer, cleaner, and more affordable energy solution.

He said: “Allow me to begin by addressing some of the most pressing benefits that CNG offers for our country and dispelling the concerns that are sometimes raised around this topic. The adoption of CNG as a primary fuel source for vehicles represents a tangible, immediate gain for all Nigerians.

“For one, CNG is an affordable, abundant resource right here in Nigeria. As we say, Nigeria is a gas nation that just happens to have crude oil. 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 dispelled the misconceptions around the use of CNG and assured of the safety and economic use of CNG powered vehicles.

According to him, CNG is safer than traditional fuels, improves vehicle performance and creates a healthier environment because it burns with far fewer pollutants reducing air pollution.

His words: “Now, I want to take a moment to address some common concerns and misinformation that have circulated around this transition. One of the most frequent misconceptions is that converting to CNG could compromise a vehicle’s safety. Let me be clear; CNG is not only safe but, in many ways, even safer than traditional fuels. CNG cylinders are rigorously tested to withstand high pressures, and because natural gas is lighter than air, it disperses quickly in the highly unlikely event of a leak, reducing the risk of fire.

“Furthermore, the concern that CNG might reduce vehicle performance is unfounded. Modern conversion kits and engines are optimised to maintain, and in some cases improve vehicle performance. With proper conversion and maintenance, at government accredited conversion centres only, vehicles running on CNG perform efficiently, smoothly, and reliably.

“Indeed, the matter of safety and quality has been a paramount priority for us from the start. This is indicated by the Standard Organisation of Nigeria (SON) and the National Automotive Design And Development Council (NADDC) being amongst the first agencies we partnered with. While the SON has provided over 80 standards on CNG, the NADDC has been integral in conversion center accreditation, conversion kit certification and a whole lot more.

“By embracing CNG, we’re making a conscious choice for a cleaner environment, lower emissions, and a healthier future. Nigeria, like the rest of the world, faces urgent environmental challenges. Reducing vehicle emissions is a concrete way we can all contribute to lowering air pollution and mitigating climate change. CNG burns cleaner than traditional fuels, with far fewer pollutants, resulting in a reduction of greenhouse gases and improved air quality for our communities.”

Continuing, Oluwagbemi explained that the PCNG Initiative is part of a nationwide vision to harness Nigeria’s abundant natural gas reserves for national development.

He noted that Nigeria ranks among the world’s top countries in gas reserves, yet this potential remains underutilised within the borders but that with the CNG programme, the initiative is targeted at ensuring that Nigeria’s wealth in natural gas translates into tangible, direct benefits for every Nigerian, from lower fuel costs to better air quality and beyond.

He announced that PCNGI is advancing this vision through a well-structured set of policy components aimed at driving a successful transition to CNG with some achievements already made.

Highlighting the achievements, the PCNGI CEO said there are close to 150 established dedicated CNG conversion centres across the country, adding that with an aim to convert one million vehicles in the commercial transport sector by 2027, PCNGI in collaboration with transport unions like NARTO, NURTW, and RTEAN, as well as local workshops are making the conversion kits and labour available at no cost to the owner, enabling them to greatly reduce their cost of operation, and crucially, pass on those reductions to their passenger.

He further announced the Rideshare CIP programme which makes kits available to owners at 50 per cent cost, while financing has also been made available to the general public through the strategic partnership with CrediCorp in bringing to life the Credit Access for Light and Mobility (CALM) which allows all salary earners, and business owners to access financing for solar panels for their homes as well as conversion kits for their cars.

On infrastructure investment and partnerships, he said: “Through a financing partnership with NIPCO and $31.5 million procurement underway, PCNGI is ensuring that every Nigerian, urban and rural, can access CNG in the near future. This infrastructure expansion will bridge the gap in underserved areas and provide reliable, affordable fuel options for all.

“The private sector is also coming in strongly now, with investments from the likes of NNPC Retail, NIPCO, BOVAS, Matrix and the like. We are also ensuring financing solutions are available through financing organisations such as InfraCorp, Bank of Industry, and Development Bank of Nigeria etc.

“We are pleased to record that well over $250m has been injected into this new industry in the last 12 months and we are expecting much more of this.”

Oluwagbemi harped on job provision via the PCNGI saying that the Initiative is committed to creating training hubs at its conversion centres where youths will be empowered with the skills needed to maintain and operate CNG vehicles, laying the groundwork for a resilient workforce that can support Nigeria’s energy transition.

Also part of the achievements according to him is that PCNGI has shown dedication to fostering strong partnerships to maximise its impact. “Recently, we hosted the Minister of Industry, Trade & Investment to engage potential investors, particularly Chinese manufacturers of CNG cylinders and conversion kits.

“These partnerships are essential to fast-track the local availability of necessary technologies and components,” he disclosed.

He further said that the PCNGI believes that the CNG revolution must be a catalyst for industrialisation and an employment multiplier, highlighting that “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 (amongst other targets) 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. This will drive down the demand for foreign exchange, create jobs for our youths and skilled labour, and eventually bring in foreign exchange as we begin to generate export capacity.”

He urged the media in this time of transformation to help in shaping public understanding and dispelling misinformation.   

Leave a Reply

Your email address will not be published. Required fields are marked *