The Presidential Compressed Natural Gas Initiative (PCNGi) announces a $200 million investment in Nigeria’s Compressed Natural Gas (CNG) sector, with over 100,000 vehicles now converted from petrol to CNG. Michael Oluwagbemi, CEO of PCNGi, highlights these achievements, noting the establishment of 140 conversion centers nationwide and thousands of new jobs created.
Economic and Environmental Benefits of CNG
Oluwagbemi stresses that CNG adoption brings both economic and environmental advantages for Nigeria. By transitioning to CNG, Nigeria could save around $3 billion annually and add another $2 billion in revenue within a few years. “Switching from petrol, which costs Nigeria $10 billion annually in subsidies, to CNG provides clear financial and energy security benefits,” Oluwagbemi says.
Expansion of Conversion Centers and Job Creation
In response to growing demand, conversion centers have expanded from just 7 in 2023 to over 140, employing more than 2,000 Nigerians. Additional private sector investments are accelerating this growth, with 6 to 10 billion naira allocated to open hundreds more centers toward a nationwide target of 1,000.
A Cleaner, Safer Fuel Option
Oluwagbemi emphasizes that CNG is not only cost-effective but also cleaner and safer. “CNG is significantly lighter and far less explosive than diesel or petrol, making it a more sustainable choice for Nigeria’s energy needs,” he explains. With a goal of one million vehicles running on CNG, projected demand would account for only 2.75% of Nigeria’s current daily gas production, ensuring supply stability.
Infrastructure Development and Suitability for Older Vehicles
To support CNG distribution, PCNGi has directed over $175 million toward mother stations, with 65 new licenses issued and 75 daughter stations under development. Additionally, studies from countries like Egypt and India show that CNG performs well in older vehicles, addressing concerns about its suitability for Nigeria’s existing vehicle fleet.
Oluwagbemi affirms PCNGi’s commitment to expanding CNG infrastructure, positioning CNG as a reliable and sustainable fuel solution that will boost Nigeria’s economic growth and energy security.
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