By John Ikani
Nigeria’s Presidential Initiative on Compressed Natural Gas (P-CNGI) announced a significant development for the transport sector: A 50% reduction in conversion costs for transporters.
The move aims to accelerate the adoption of CNG-powered vehicles, promoting cleaner and more affordable transportation in Nigeria.
The announcement came during a stakeholders’ event co-hosted by P-CNGI, Portland Gas, and NASENI in Abuja. The event’s theme, “Driving Sustainable Transportation: Accelerating CNG Adoption in Nigeria,” underscored the government’s commitment to a greener transportation future.
CNG: A Boon For Budget And Environment
Speaking at the event, Portland Gas’ managing director, Folajimi Mohammed, highlighted the substantial cost savings associated with CNG vehicles. Compared to traditional petrol, CNG offers a staggering 76% reduction in fuel expenses. Mohammed emphasized, “The cost benefits are undeniable, making CNG adoption a near certainty.”
Mohammed said ordinarily, the conversion cost is N1.2 million, which the vehicle owners can recover in a year.
He further addressed concerns about safety, explaining that CNG is lighter than air, minimizing the risk of fire outbreaks. Additionally, Mohammed pointed out that CNG’s resistance to adulteration ensures cleaner combustion compared to other fuels.
Financing The Future Of Transport
P-CNGI Programme Director, Michael Oluwagbemi, delivered positive news regarding investment in the CNG sector. Since the initiative’s inception, over $50 million has been mobilized, surpassing the total investment in the preceding decade. This robust financing paves the way for increased accessibility for ordinary Nigerians, particularly those in the transport industry.
Making CNG Accessible
Oluwagbemi reiterated the launch of the Conversion Incentive Program in May 2024, a move designed to simplify CNG adoption for Nigerians. This program leverages partnerships with private sector entities, development funds, and banks to finance the transition. Oluwagbemi stressed the crucial role of the private sector in the initiative’s success.
Streamlining Safety And Efficiency
The government is actively promoting safety and efficiency in the CNG conversion industry. In March 2024, over 80 safety standards and procedures were established in collaboration with the Standards Organization of Nigeria. Additionally, regulatory bodies are working towards creating a streamlined “one-stop shop” system called the Nigerian Gas Vehicle Monitoring System (NGVMS).
A Vision For A Sustainable Future
Oluwagbemi concluded by emphasizing the ambitious target set by P-CNGI: 1 million vehicle conversions by 2027. He expressed his confidence in Nigerians’ ability to achieve this goal, citing their innovative spirit, resilience, and adaptability.
He concluded with a call to action, urging Nigerians to leverage their natural resources, both human and gas-based, to drive the nation’s transportation sector and economy forward.
