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ABUJA, NIGERIA (NAN) - The Presidency announced on Monday that Automobile Compressed Natural Gas (AutoCNG) has garnered over $491 million in investments over the past year, with aspirations to reach $1 billion in Nigeria’s alternative fuel industry by the close of 2025.
The Programme Director / CEO of the Presidential CNG Initiative, Michael Oluwagbemi, shared this information during a media briefing at the Presidential Villa in Abuja.
The initiative, which was launched by President Bola Tinubu on October 1, 2023, aims to promote the adoption of natural gas and other alternatives, including electric vehicles (EVs), following the removal of the fuel subsidy that led to increased transportation costs.
During his address, Oluwagbemi highlighted that the initiative has generated over 9,000 direct jobs and 75,000 indirect jobs.
“Nigeria’s capacity to convert vehicles from pure petrol and diesel to bi-fuel vehicles has surged by nearly 3,000 percent, with over 200 new conversion centers established by the private sector, a significant increase from the mere seven that existed at the program's inception, directly creating over 3,000 new technician jobs with the launch of the Conversion Incentive Programme.”
Oluwagbemi noted that some recent adverse events involving CNG vehicles, particularly in Benin, Edo State, were due to sabotage.
He stated, “We acknowledge the initial safety concerns among the public and have addressed them by collaborating with the Federal Ministry of Petroleum (Gas) to establish comprehensive monitoring of all gas vehicles, not just CNG, through a joint effort by the four key regulatory bodies in the sector: SON, NADDC, NMDPRA, and FRSC.”
In addition, the Federal Government has been called upon to enhance support for the development of Compressed Natural Gas (CNG) infrastructure in Nigeria as the country seeks to lessen its dependence on expensive petroleum products. This appeal was made during the launch of the CNG Auto Conversion and Liquefied Petroleum Gas (LPG) bottling plant by AX Gas in Lagos, aimed at promoting the use of alternative fuels.
In his address, AX Gas CEO, Andre Bassey, noted that the company is collaborating closely with the Presidential Compressed Natural Gas Initiative (PCNGI). He mentioned that the PCNGI provides licenses and conversion kits to authorized facilities such as AX Gas, enabling them to offer affordable CNG solutions to vehicle owners, including free services for commercial vehicles.
He urged the government to foster a conducive environment for establishing refill stations across the nation. Addressing public concerns regarding the risk of explosions with CNG, Bassey attributed previous incidents to negligence.
