- Safiu Kehinde
The leadership of the Presidential Compressed Natural Gas Initiative (PCNGI) has explained reasons behind its focus on high impact areas where Nigerians are considered to more likely to feel the impact of the adoption of compressed natural gas in the economy.
This was made known in a statement issued on Thursday by the initiative.
According to the statement, the PCNGI Executive Chairman, Barr. Ismael Ahmed, and Programme Director, Engr. Michael Oluwagbemi, had at a press briefing explained the efforts made so far made to advance the course of natural gas adoption in line with what is going on around the world.
The leadership noted that the initiative is focused on conversions of commercial vehicles, vehicles on campuses, food baskets of the nation where agricultural products are transported to end users are more favoured in order to cause significant reduction in the cost of goods and services in the country.
Ahmed, who first spoke on the progress made so far by the initiative, outlined the nation’s strategic shift towards Compressed Natural Gas (CNG) as a sustainable alternative to petrol.
The initiative, born from President Bola Ahmed Tinubu’s inaugural speech decision to remove fuel subsidy, aims to bring tangible relief to millions of Nigerians.
He said that Nigeria is fundamentally a gas country, possessing “over 45% of Africa’s proven gas resources, amounting to 208 trillion cubic feet, enough to last 99 years, with unproven estimates reaching 350 trillion cubic feet”.
This, according to him, contrasts with the long-held belief of Nigeria being primarily an oil-rich nation.
Ahmed said media education has become important to halt misinformation campaigns going on, adding that the public need adequate education to aid in the efforts to ensure penetration of the gas initiative.
On his part, Oluwagbemi said the PCNGi is a catalyst for the development of the sector rather than a replacement for the private sector.
“The government’s role is to set and enforce regulations, facilitate investments, and provide incentives such as VAT and import duty waivers for CNG vehicles and components. It was highlighted that importing CNG vehicles is already more financially favorable due to these waivers.,” he said.
Appealing for balanced reporting that will aid the work of the initiative, he said publishing negative stories about the activities of the natural gas initiative is a major drawback.
Answering to a question whether PCNGi official vehicles are all powered by natural gas, Ahmed said his team has already perfected the adoption of natural gas adding that one of the vehicles in the convoy of the President has already been converted saying leaders are being encouraged to use the alternative as a way of encouraging members of the public to use it and enhance investments in the sector.
Oluwagbemi detailed the PCNGI’s significant strides in just 12 months listing over 300 new CNG conversion centres nationwide, a dramatic increase from just seven previously, expansion from 5 states to 20 states across all six regions benefiting from PCNGI initiatives and the distribution of 5,950 EV or CNG platforms, including buses and tricycles, often through labor unions as part of agreements following fuel subsidy removal.
He added that the team has caused the training of 5,500 conversion technicians, with plans to train 25,000 roadside mechanics.
The PCNGI Programme Director further disclosed the mobilisation of over $980 million in private sector investment, including a significant N725 billion investment by Dangote Industries which validated the private sector-led approach.
He revealed that the initiative is getting favourite responses adding than local manufacturing of vehicles and components, working with Nigerian auto manufacturing companies like Innoson, Peugeot, and Nord Motors have keyed into the project.
According to him, the PCNGI’s mandate is built on three crucial “As”: Acceptability, Accessibility, and Affordability. He described CNG as being far safer, cleaner, and more sustainable than traditional fuels, with the potential to ‘reduce transportation costs by 80-90%’.
The Programme Director highlighted the story of an Uber driver whose daily earnings significantly increased after converting to CNG, demonstrating the immediate positive impact on livelihoods.
According to him, the ultimate goal is to convert “one million vehicles by 2027”, which is projected to create “75,000 direct and 300,000 indirect jobs”.
While celebrating significant progress, the Presidential Compressed Natural Gas Initiative (PCNGI) team candidly addressed the challenges hindering wider Compressed Natural Gas (CNG) adoption and called for robust support from media executives.
The team emphasised that overcoming these hurdles requires a collaborative approach involving government, the private sector, and informed public engagement.
Oluwagbemi acknowledged that the relief from CNG adoption has not been as instant as the impact of the fuel subsidy removal, primarily due to the inherent difficulty and time required to build extensive infrastructure.