The Presidential Compressed Natural Gas Initiative (PCNGi) says the Federal Government aims to attract $1 billion annually into compressed natural gas (CNG) conversion projects across Nigeria.
Michael Oluwagbemi, the Programme Director and CEO of PCNGi, made this known during the launch of a CNG conversion centre at Commercial Parks, Mile 2, Lagos. The centre was set up in partnership with the National Union of Road Transport Workers (NURTW).
Oluwagbemi highlighted rapid growth in CNG investments over the past year.
“In the last one year, we’ve invested over $500 million, and more funds are coming. Our goal this year is $1 billion, and we’re already near $175 million,” he said.
He mentioned that Greenville, NIPCO, AYM Shafa, Femadec Energy, and the federal government, through the Midstream and Downstream Gas Infrastructure Fund (MDGIF), have all committed significant funds to the project.
Oluwagbemi stressed the importance of expanding CNG infrastructure to northern Nigeria.
“Our food comes from the north, and we want it cheap in the south. To achieve that, we must supply gas to the north. This will cut transport costs and make food affordable in both regions,” he explained.
He noted that the private sector is driving the rapid development of CNG refuelling stations.
“When GSM started, we had to walk or climb trees to make calls because towers were few. But things improved because private firms kept investing. The same will happen with CNG infrastructure,” he added.
NURTW Backs PCNGi’s New Conversion Process
NURTW State Secretary, Comrade Usman Teslim, welcomed the new approach as a major breakthrough for transport workers.
He recalled how the union supported the first CNG conversion centre, launched about a year ago.
“Time matters to drivers. Before now, they had to park their vehicles for a day or two. With PCNGi’s latest approach, a driver can work during the day and convert the vehicle in three to four hours, if everything checks out,” he said.
Teslim described the improvement as a game changer that will boost productivity and reduce downtime for drivers.
