By Ade Iyamoye
The CEO of the Presidential Compressed Natural Gas (CNG), Initiative, Engr Michael Oluwagbemi, has assured Nigerians that the government’s CNG conversion program will significantly reduce transportation costs while fostering local content development in the sector.
Speaking during an exclusive interview, Oluwagbemi outlined ambitious plans to expand the adoption of CNG-powered vehicles nationwide.
He revealed that over 10,000 commercial vehicles in Abuja and Lagos are targeted for conversion within the next 10 weeks under the “10 for 10” program, with projections to increase this figure to 250,000 vehicles within a year.
“We are starting with critical urban centers like Lagos and Abuja to achieve the critical mass needed to lower transportation costs,” he said.
To sustain the initiative, Oluwagbemi emphasized the importance of local content, noting that over 80% of the program’s spending so far has been directed toward Nigerian companies.
He also highlighted growing investments in local manufacturing of CNG kits, cylinders, and vehicles.
“This program has created over 9,000 jobs and attracted $470 million in investments, with more opportunities on the horizon,” he added.
The CEO acknowledged the challenges of scaling up, such as increasing conversion centers and training technicians.
Plans are underway to double the current 193 conversion centers to 500 by year-end, with a capacity to convert 250,000 vehicles annually.
Additionally, partnerships with state authorities aim to implement CNG policies at the local level, with Abuja poised to become a model for full adoption of CNG-powered taxis.
Oluwagbemi commended President Bola Ahmed Tinubu for prioritizing energy transition policies and urged Nigerians to embrace the program.
He assured that ongoing investments in refueling stations and modular refilling units will ensure adequate CNG supply across the country.
“CNG conversion is not just about reducing costs; it’s about driving local capacity and positioning Nigeria as a leader in energy transition,” Oluwagbemi said.
