The Federal Government, through the Presidential Compressed Natural Gas Initiative (P-CNGI), has activated about 125 Compressed Natural Gas (CNG) conversion centres nationwide.
This was disclosed by Michael Oluwagbemi, the chief executive officer of P-CNGI, who revealed that that 125 centres had surpassed the 100 centres earlier anticipated.
Oluwagbemi, in an interview in Abuja, added that additional N80 billion worth of CNG investments were generated within the last one week.
He said: “This time last year, the country had just seven conversion centres and we promised to deliver at least 100 of them this year. Already we have well over 125.”
Oluwagbemi said President Bola Tinubu had directed that one million Nigerians with commercial vehicles or Rideshare should be converted to CNG free of charge.
He noted that commercial vehicles are responsible for 90 per cent of conveyance of passengers in the country everyday, thus the need to prioritise commercial vehicles’ conversion.
He pointed out that the development of the CNG market has created jobs for more than 20,000 people.
He however said availability of gas has been a constraint at the conversion centre since gas is required for top-up in order to calibrate.
Oluwagbemi said the P-CNGI is working with the private sector and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to come up with innovative mobile refueling units.
He said: “The availability of gas is still a challenge, especially at the conversion centres because once they convert, they need to top up with gas in order to calibrate.
“We are working with the private sector to come up with innovative solutions like the mobile refueling units, working with NMDPRA.”
According to him, 10 states have activated the CNG while non- availability of gas infrastructure is delaying the activation in some other states.
He was hopeful that by the end of the year, 18 states would have activated CNG centres as additional three are on the way in October.
He said there has been impediment in activating CNG in the north east and north west because of lack of gas pipeline.
Oluwagbemi said plans are underway to engage the states for the possibility of linking them to the Ajaokuta Kaduna Kano Gas pipeline project.
He said: “Primarily, it is the availability of gas infrastructure. We are talking primarily of the far north eastern states and North West where there is no gas pipeline for gas distribution and that is the main impediment. And off course, we are working with those states.
“For example we are having AKK Summit at the end of this year, we are mobilising the states to see what they will do to link up to AKK pipeline to bring gas to their states.”
Oluwagbemi recalled that as at September 2024, CNG had already attracted $175 million investments.
He said: “If I count that investment, we have gone up by N80 billion in the last one week. You said what was the update, I am adding that N80 billion to $175 million of September, and that is another extra $16 million that will be added to the $175million”.
Oluwagbemi also said four of the six companies that the Midstream and Downstream Gas Infrastructure Fund (MDGIF) awarded N122 billion for gas development projects last week were for CNG.
He said the initiative, which had initially designed the programme to roll out CNG vehicles in 15 to 18 months has adjusted target to accelerate delivery period by engaging local manufacturers because of the Palestine and Israeli war.
