Presidential Initiative Mobilises $50 Million Investment for CNG Adoption

*FG slashes conversion kits by 50% for transport sector

*Operators say Nigerians can save 77% on gas-powered vehicles

Emmanuel Addeh in Abuja

The Presidential Compressed Natural Gas Initiative (PCNGI) yesterday disclosed that it had been able to mobilise $50 million in investment, more than any amount committed in the last 10 years combined.

Speaking during a stakeholders’ meeting in Abuja organised by Portland Gas themed: “Driving Sustainable Transportation: Accelerating CNG Adoption in Nigeria”, the Programme Director, Michael Oluwagbemi, said in December,  President Bola Tinubu approved a series of fiscal incentives for the initiative.
According to Oluwagbemi, who was represented by the Head, Commercial, Tosin Coker, the incentives included waivers on import duties and value-added tax for CNG equipment, vehicles, and conversion kits.

In April, Oluwagbemi stated that his office also approved preferential central gas pricing for autogas while the president announced that all Ministries, Departments and Agencies (MDAs) of the federal government must acquire CNG-enabled vehicles, providing a significant boost to the sector.

He added: “In December 2023, we hosted our first investor forum, which saw tremendous participation from companies now investing in the sector. I am pleased to report that well over $50 million has been mobilised directly by the sector since then, more than any amount mobilised in the last 10 years combined.
“We are also enabling ordinary Nigerians, particularly transport operators, to convert their vehicles.  Last month, on May 29, we announced the Conversion Incentive Programme, making it easier for Nigerians to adopt CNG. This effort is supported by private sector partners, development funds, and banks, all eager to finance this transformative initiative.

“More importantly, in an effort to reduce the cost of public transport, we are catalysing the sector by supporting with the introduction of CNG buses and tricycles. In the next days you will witness these buses on the streets of Abuja, even as we also start to make conversion kits available at 50 per cent discount to the transport sector.”

He stated that developing the industry needs the active participation of the private sector, stressing that private sector investors need open, fair, transparent and predictable regulations to feel secure and ensure their investments can thrive.
 To that effect, in collaboration with the Standards Organisation of Nigeria (SON), Oluwagbemi said the CNG programme has approved over 80 standards and procedures for the CNG conversion industry.

He added that the initiative has set an ambitious target of 1 million vehicle conversions by 2027 and commended Portland Gas Ltd, the organisers and hosts for their foresight and courage in championing the cause, which he said  truly embodies Nigerian solutions to Nigerian problems.
“We are determined not to repeat the mistakes of our forefathers, who exported raw resources and imported finished products. The CNG revolution has started. Let us get on board as there is no going back,” he noted.

Speaking during a presentation, the Managing Director of Portland Gas, Folajimi Mohammed, said that CNG tanks and systems are designed with robust safety features, making it a safe fuel option when installed by certified professionals.
He said that regular maintenance and inspection of the CNG system was recommended to ensure continued safe operation, saying it should include tank inspections, while qualified technicians should be used.

“The cost of conversion can vary depending on the vehicle model, size of the CNG tank, and the conversion centre, but it typically ranges from N1.2 million to N1.5 million.
“The average rule of thumb is that for every litre of petrol, you can achieve 14km. In the case of CNG, 1SCM of gas would take you 18km. CNG-converted vehicles generally see a 10-20 per cent reduction in fuel efficiency compared to the original petrol version. However, the reduced fuel cost of CNG often offsets this mileage difference.
“You will be saving more than 77 per cent of your normal cost for buying petrol when you run your car engine on dual-fuel,” he said.
In her opening remarks, Marketing Officer of Portland Gas, Cynthia Ebuzor, said that with growing environmental concerns and the pressing need to reduce greenhouse gas emissions, CNG presents a viable and more clean alternative to conventional fuels.
“Together, we can drive the shift towards a cleaner, more efficient transportation that benefits our wallets, our health, and the health of our planet,” she added.