- Safiu Kehinde
The Federal Government has, on Thursday dismissed the risk claims surrounding the Presidential Compressed Natural Gas Initiative (PCNGi).
Reacting to an editorial on Punch newspaper which criticized the initiative, PCNG’s Project Director, Michael Oluwagbemi, in a statement issued on Thursday, maintained that CNG is cleaner, safer, and less explosive like diesel or petrol while adding that it can also be fixed on old vehicles
On the risk of explosion in reference to an incident in Edo state, Oluwagbemi claimed that the incident due to the substandard, uncertified, and poorly fabricated CNG cylinders fixed into the car.
“The Punch also got it wrong with its “conversion explosion” slant in Edo State. It is important to emphasize that the explosion in Edo State happened because of substandard, uncertified, and poorly fabricated CNG cylinders, which exploded during an attempt to refill (not convert) at a station.
“It is equally important to reiterate that CNG is safe and cleaner to use. It is lighter and eight times less explosive than diesel and eighteen times less explosive than petrol. It is also more readily available and a more sustainable alternative for Nigeria’s energy security.
Recounting other achievements of the initiative, Oluwagbemi, however, expressed concern over the spread of misinformation as regards CNG which was established as remedy to high cost of petrol.
He maintained that the initiative has recorded success since its launch with over 100,000 vehicles converted from petrol powered to CNG/bi-fuel powered.
“As a response to the high cost of petrol and the attendant rise in the cost of transportation, following the removal of fuel subsidy, President Bola Tinubu launched the Presidential CNG Initiative to provide a cheaper and cleaner energy source for Nigerians.
“Since the launch of this groundbreaking initiative, the response has been positive as Nigerians are embracing and converting their petrol-powered vehicles to CNG-enabled vehicles – with over 60% reduction in the amount of money they spend on fuel.
“To date, over 100,000 vehicles have been converted from petrol to CNG/bi-fuel-powered, and more conversion centres are being established across the country.
“In addition, investors are ramping up the development and deployment of CNG infrastructure, with over $200 million already invested across the value chain. Thousands of new jobs and economic opportunities are opening up along the line.
“Going by the level of progress being made as regards the adoption and deployment of CNG infrastructure, we are concerned over certain instances of misinformation against this epochal initiative by a section of the media.” Oluwagbemi said.
He accused the Punch newspaper of being irrational and unfair in its assessment of the initiative.
The media outlet had, in the editorial, highlighted challenges facing the initiatives among which include ease of conversion, risk of explosion, and eligibility of old vehicles amongst others.
Explaining the cost effectiveness of CNG as against petrol, Oluwagbemi also hinted the opportunities attached to the initiative
“It is surprising how the choice of petrol, for which Nigeria spent about $10 billion annually on subsidy, and CNG which has the potential to save the nation $3 billion while adding $2 billion revenue to the national purse in the next three to four years, is an issue of toxic debate.
“First, one of the issues raised against the CNG initiative and its implementation by The Punch is ease of conversion. We see this as an opportunity rather than a challenge, and we are already deepening the development of CNG infrastructure with our partners.
“However, the number of conversion centres has risen from seven in 2023 to more than 140 across the country, and certainly not 50 centres as claimed by The Punch.
“Facts are sacred. We believe the sacrosanctity of facts is not lost on The Punch, but to claim or assert without veracity and evidence is an obvious attempt at mischief.
“In addition, more than 2,000 Nigerians have been employed in these conversion centres, with more jobs in the offing as CNG penetration ratchets up. In the past year, the private sector invested over 2 billion naira to establish these conversion centres, and another 6 to 10 billion naira will go into setting up more centres to meet the targeted 1,000 centres required to transform the nation’s energy dynamics.
“Second, there is no cost of conversion for commercial vehicles in Nigeria. It is FREE under the President’s Conversion Incentive Programme. The programme seeks to convert one million commercial vehicles to CNG/bi-fuel in the next three years.
“This is verifiable information as the National Union of Road Transport Workers (NURTW), whose members have benefitted recently issued statements acknowledging this fact.” He said.
“With one million vehicles running on CNG, overall demand annually will be 220 million standard cubic feet of gas a day, or 2.75% of our current daily gas production, of which only 16% is consumed locally.
“CNG distribution is also picking up with 75 new daughter stations under construction across the country, and additional containerized and mobile refuelling units are being set up by the private sector working closely with regulators. Mother station investments have totalled over $175 million in the past one year, with 65 new licences issued.
“Lastly, CNG conversion kits are suitable for older vehicles. The experience in Egypt, India, and Iran shows that old vehicles operate better and more efficiently on CNG than they would on petrol.
“Open loop non-sequential conversion kits exist for aged vehicles, and the PCNGI has succeeded in Lagos in fitting several old yellow buses with the kits – with videos of the beneficiaries to show.” The PCNGi boss said.
Meanwhile, he debunked claim of CNG not being used by government agencies.
“The claim that the government is not leading by example on CNG is false. On the contrary, the conversion programme started with government institutions like the Nigerian Army and the Nigeria Police – through the Police Trust Fund.
“The programme has now expanded to other MDAs like the Federal Road Maintenance Agency, the Ministry of Finance, and even the Federal Inland Revenue Service, as well as the PCNGI leadership team. More MDAs are signing up to the use of CNG for their vehicles.
“In addition, the federal government had already issued clear directives that only CNG-enabled vehicles should be purchased by government agencies.
“President Tinubu also directed that only such vehicles are to be approved by the Federal Executive Council.” He added.