The Nigerian government announced plans to significantly reduce the importation of Premium Motor Spirit (PMS), commonly known as petrol, by approximately $4.4 billion annually through the adoption of Compressed Natural Gas (CNG). The announcement was made on Tuesday by the Presidential Compressed Natural Gas Initiative (PCNGI).
According to Zayyan Tambari, Coordinator of Regulations, Compliance, and Facilitation at PCNGI, the government aims to convert one million vehicles powered by diesel and petrol to CNG. This shift is expected to cut the country’s PMS imports drastically. Tambari disclosed this during a presentation at the Co-Creation Session on Nigeria Gas Vehicle Monitoring System held in Abuja.
The initiative targets replacing 20% of the 50 million liters of petrol consumed daily in Nigeria with CNG. Last Thursday, The PUNCH reported that the Federal Government had started rolling out CNG-powered buses and tricycles. The Special Adviser to the President on Information and Strategy, Bayo Onanuga, confirmed that the deployment began in Ilorin, Kwara State, where Governor Abdulrahman Abdulrazak launched a refueling and conversion center.
The Abuja session also highlighted that an investment of about $890 million would be needed to develop the necessary infrastructure for CNG. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), represented by Abel Nsa, emphasized the government’s commitment to maximizing the benefits of Nigeria’s gas resources. Ekpo stressed the importance of addressing safety concerns and educating the public on the use of CNG.
Ogbugo Ukoha, Executive Director of Distribution System, Storage, and Retailing Infrastructure at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), announced that new filling stations would be licensed only if they could provide CNG dispensing points. Ukoha also mentioned ongoing engagements with stakeholders to mandate the conversion of fuel trucks and fleets to CNG due to the high cost of diesel.
Michael Oluwagbemi, Project Director and Chief Executive of PCNGI, highlighted the advantages of gas over crude oil, citing its cost-effectiveness, environmental friendliness, safety, and sustainability. Oluwagbemi stressed the need for a smooth transition and strict regulatory compliance to ensure the success of the conversion program.
On Thursday, Oluwagbemi announced the start of the nationwide CNG conversion program for mass transit buses. The program aims to convert vehicles to cleaner energy sources, reducing emissions and promoting sustainability. The initial phase will be launched in Lagos, Kwara, the Federal Capital Territory, and Rivers states, in collaboration with major transport unions such as the National Union of Road Transport Workers, Road Transport Employers’ Association of Nigeria, and Nigerian Association of Road Transport Owners.
The rollout will begin at eight of over 120 designated conversion workshop sites, with key union partners observing and evaluating the conversion process. The program plans to scale up operations across 15 states within the next 45 days.
