CNG Sector Attracts $500m Investments – P-CNGI
The Presidential Compressed Natural Gas Initiative (P-CNGI) says the CNG sector has attracted over 500 million dollars investments and created over 10,000 direct jobs. The P-CNGI said that 255 new conversion centers that did not exist in 2024 and 53 daughter stations existed currently.
Mr Michael Oluwagbemi, Programme Director/Chief Executive Officer, P-CNGI on Monday emphasised that Nigeria is making progress in expanding the CNG infrastructure and investments. Oluwagbemi, however, said that engineering feats took time.
He recalled that from May 2024, the P-CNGI set out to implement its mandate in line with the directive and vision of President Bola Tinubu.
He highlighted the mandates to include incentivising the adopting CNG and Electric Vehicles to ensure sustainable transportation for all Nigerians, and facilitating investments into the alternative energy sector for transportation.
According to him, the programme is also charged to coordinate regulation of the emerging sector for rapid growth and Nigeria is making progress in expanding the CNG infrastructure and investments across the nation.
He said that because the initial desire of the President was greeted with scepticism, the start-up work of the P-CNGI was to embark on an intensive awareness campaign which was conducted from May to October 2024.
“Hardly any CNG vehicles were on our roads, and no demand at the few eleven CNG stations nationwide since a 2017 pilot by NNPC Ltd.“Our most ardent adherents were not convinced that anyone will want CNG vehicles.
“Misinformation and fake news on CNG dominated the media space. We are pleased that even the doubting Thomases are singing a new tune,” he said.
He further said that with over 50,000 vehicle count and rising to 100,000, the queues at CNG stations were naturally going to rise, because of such unprecedented increase (from mere 4000) in vehicle count.
This, he said, is as a result of massive incentive provided by the administration and the breakthrough in awareness due to the economic benefits of the switch.
“Just last week, two new daughter stations in Abuja were commissioned with AY Shafa and Femadec investing in these ventures. “Both entities have nine and 21 daughter stations respectively in the works in the next one year.
“For Femadec, the dual benefit of leading the charge of building CNG ecosystem in 20 universities is an icing on the cake,” he said. He said that Yola was stepping up with Greenville investing within the week.
According to him, it was an evidence of the company’s intensive roll out of CNG stations in 51 locations across the North and South East as well as hard to reach places. “Over 175 stations are being rolled out nationwide by various partners,” he said.
He said that in addition to Greenville and Femadec, the P-CNGI was backing partners to roll out 24 sites in the next six to nine months, with one site already activated in Ilorin.
“Port Harcourt, Ado Ekiti, Lokoja, Abuja, Aba and Enugu will all go live within the next 60 to 120 days to dispense CNG. “This is to scale the refueling on-lending initiative heralded with the first launch in Ilorin in 2024.
“Aside from these, NNPC Ltd. is investing in Additional eight stations to its current stock of 12; another 40 of 100 in Phase two of her roll out plan is being finalised.
“Bovas is launching two sites in Ibadan any moment from now from its eight station roll out of ultra modern CNG stations and ecosystem. “NIPCO’s eight stations in addition to 23 already live across the country will be completed within 6 months.
“Just last week, the Midstream Downstream Gas Infrastructure Fund (MDGIF) a veritable partner in the process awarded 10 new entries equity investments to develop their various gas projects,” he said.
He said this was in addition to four of the six of initial N123 billion investments made in 2024 by MDGIF being directed at the sub-sector.
He said that in one year, the CNG sector had attracted over 500 million dollars investments and created over 10,000 direct jobs, adding that 255 new conversion centers that didn’t exist in 2024 and 53 daughter stations existed currently.
Oluwagbemi, however decried the report on the fate of the thriving CNG sector by the sceptic section of the media, which complained about infrastructure gap in a sector that was barely seven months old.
“At P-CNGI, we remain committed to our mandate while working hard across the value chain to deliver the goodies President Bola Tinubu has promised all Nigerians,’ he said #CNG Sector Attracts $500m Investments – P-CNGI#
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