Over 100,000 gasoline-powered vehicles have been converted to compressed natural gas in the last year, according to the Federal Government, which emphasizes that it has made great strides in increasing the use of alternative fuels nationwide. This was revealed Thursday at a workshop for a sensitization program in Lagos by Michael Oluwagbemi, the Chief Executive and Program Director of the Presidential Compressed Natural Gas Initiative. Oluwagbemi said in a statement on Friday that the Federal Government had made significant progress in the past year in mitigating the effects of the elimination of gasoline subsidies. He claimed that in just over a year, the number of CNG-powered cars in the nation had increased from less than 4,000 to around 100,000.
“The President had a clear vision: use domestic energy sources, such as natural gas, to build a more economical and sustainable transportation system while relieving the strain on citizens. “Although there was initially a lack of public awareness, Nigerians are now adopting CNG nationwide,” he stated. Oluwgbemi emphasized the increasing involvement of the corporate sector, pointing to the Dangote Group’s recent introduction of 4,000 CNG trucks as evidence of business trust in the initiative. “Businesses are investing because they see the benefits—it’s not just a government project,” he continued.
According to the PCNGI chief, the initiative’s next phase aims to convert 250,000 vehicles in collaboration with commercial operators.
With contributions from Femadec, Greenview, and Greenville as well as $280 million from Dangote Group and $28 million from Arita LNG, the industry has so far seen over $1 billion in investment. We now have 265 conversion centers across the country, up from only seven last year. Along with expanding from 20 to 60 operating refueling stations and adding 175 more in the works, we have also directly produced over 10,000 employment,” he stated. Oluwagbemi addressed safety concerns by stating that CNG is far safer than traditional fuels. “CNG is eight times less explosive than diesel and eight times less explosive than gasoline,” he stated. The majority of explosion incidents are either overblown or concern gasoline-powered cars rather than CNG. He said that the scheme is a component of a larger national plan to raise household earnings while lowering the cost of food and transportation.
“Food prices increase as transportation costs decrease. For example, in some parts of Lagos, the cost of meat has decreased due to the usage of CNG trucks for livestock transportation, Oluwagbemi stated. Along with private logistics companies, he also affirmed the strong support of key transport unions, such as the National Union of Road Transport Workers and the Road Transport Employers’ Association of Nigeria. We now have 60 operational CNG stations, compared to just 20 by the end of 2023. We intend to commission another 100 over the course of the following three months,” he continued.
“Rome wasn’t built in a day,” Oluwagbemi said, defending the implementation’s speed. The speed at which we are resolving the fuel subsidy situation cannot be reasonably criticized by those who drove Nigeria into it. He called on Nigerians to back President Bola Tinubu’s vision for renewable energy and his larger energy transition plan. Babatunde Karim, an executive official of the Road Transport Employers Association of Nigeria, also spoke to media and commended the CNG program for lowering transporters’ operating expenses. However, he encouraged the Federal Government to address issues with equipment shortages and gas supply. We used to pay roughly N50,000 for gas to travel a specific route before. These days, we spend as low as N12,000 using CNG. It’s a great relief. It demonstrates that the government is headed in the right direction,” Karim remarked.
He attested that a large number of commercial drivers had started to convert their cars under the CNG initiative, including those who run the recognizable yellow buses of Lagos. He did, however, list low gas pressure and erratic supplies at filling stations as significant obstacles. Sometimes there is no pressure when we arrive at a station. At other times, there is absolutely no gas. “These are problems that require immediate attention,” he stated. Speaking as well, Mr. Dele Tajudin, an executive member of the Independent Petroleum Marketers Association of Nigeria, stated that although the idea had a lot of potential, it would need financial assistance and major regulatory changes in order to scale it successfully. Tajudin, speaking on behalf of IPMAN’s National President Alhaji Abubakar Maigandi, stated that the majority of current filling stations were constructed for gasoline and diesel rather than CNG, and that doing so would require millions of dollars in funding, infrastructure improvements, and planning permits.
“It’s not easy to install a CNG facility. It entails money, regulatory compliance, and structural adjustments. The majority of marketers won’t be able to complete the transition without government assistance, Tajudin stated. He went on to say that long lines and restricted access for drivers were caused by the lack of CNG facilities at numerous stations.
“Independent marketers are found almost everywhere in Nigeria, particularly in areas without major marketers. We are in a good position to spearhead this change, but we require government funding and technical assistance,” he said.
