By Ade Iyamoye
The Federal Government’s Presidential Compressed Natural Gas (CNG), Initiative is taking bold strides towards reducing transportation costs and advancing Nigeria’s energy transition goals.
In an exclusive interview with TVC, the Project Director and CEO of the Presidential initiative Compressed Natural Gas initiative (PiCNG), Michael Oluwagbemi detailed the program’s progress, challenges, and ambitious targets.
Oluwagbemi revealed that the initiative began distributing conversion kits, focusing on urban centers like Lagos and Abuja.
“Our goal is to convert 10,000 commercial vehicles in these cities within the next 10 weeks,” he said, emphasizing a strategy to reduce transportation costs through mass vehicle conversions.
Partnerships with transport unions and agreements for fare reductions are underway to ensure Nigerians feel the immediate benefits.
The initiative aims to expand conversion centers from 193 to 500 by year-end, raising annual conversion capacity from 55,000 to over 200,000 vehicles.
“In 12 months, we project 150,000 to 250,000 vehicles running on CNG, scaling up to half a million within 18 months,” Oluwagbemi noted.
He also highlighted investments in technician training, targeting 10,000 personnel this year.
Addressing local content, Oluwagbemi said over 80% of the program’s spending involves Nigerian companies.
He highlighted partnerships with indigenous firms like Innoson, Jet Automotive, and Mikano to boost manufacturing capacity for CNG kits and vehicles.
“This creates jobs and positions Nigerian companies to dominate the CNG value chain,” he remarked.
Challenges remain, including the availability of gas refilling stations. The Nigerian National Petroleum Company (NNPC), has pledged 120 refilling stations, with 20 expected to be operational by mid-2024.
Modular refueling units are also being deployed to reduce wait times at pumps.
The initiative, hailed as a critical component of Nigeria’s energy transition, aligns with global trends.
“Countries like India are already moving away from petrol and diesel. Nigeria must follow suit to achieve sustainability,” Oluwagbemi asserted.
With lofty goals and significant progress, the Presidential CNG Initiative is set to transform Nigeria’s transportation sector, promising economic relief and environmental benefits.
