Presidency Provides Update On CNG Initiative

Following recent media reports, we find it necessary to address certain misinformation regarding the Presidential CNG Initiative. 

As a response to the high cost of petrol and the attendant rise in the cost of transportation, following the removal of fuel subsidy, President Bola Tinubu launched the Presidential CNG Initiative to provide a cheaper and cleaner energy source for Nigerians. 

Since the launch of this ground-breaking initiative, the response has been positive as Nigerians are embracing and converting their petrol-powered vehicles to CNG-enabled vehicles – with over 60% reduction in the amount of money they spend on fuel. 

To date, over 100,000 vehicles have been converted from petrol to CNG/bi-fuel-powered, and more conversion centres are being established across the country. In addition, investors are ramping up the development and deployment of CNG infrastructure, with over $200 million already invested across the value chain. Thousands of new jobs and economic opportunities are opening up along the line.

Going by the level of progress being made as regards the adoption and deployment of CNG infrastructure, we are concerned over certain instances of misinformation against this epochal initiative by a section of the media.

For instance, the October 31, 2024 editorial of the Punch Newspaper did not give a rational and fair assessment of the CNG initiative.

It is surprising how the choice of petrol, for which Nigeria spent about $10 billion annually on subsidy, and CNG which has the potential to save the nation $3 billion while adding $2 billion revenue to the national purse in the next three to four years, is an issue of toxic debate. 

First, one of the issues raised against the CNG initiative and its implementation by The Punch is ease of conversion. We see this as an opportunity rather than a challenge, and we are already deepening the development of CNG infrastructure with our partners. However, the number of conversion centres has risen from seven in 2023 to more than 140 across the country, and certainly not 50 centres as claimed by The Punch. Facts are sacred. We believe the sacrosanctity of facts is not lost on The Punch, but to claim or assert without veracity and evidence is an obvious attempt at mischief. 

In addition, more than 2,000 Nigerians have been employed in these conversion centres, with more jobs in the offing as CNG penetration ratchets up. In the past year, the private sector invested over 2 billion naira to establish these conversion centres, and another 6 to 10 billion naira will go into setting up more centres to meet the targeted 1,000 centres required to transform the nation’s energy dynamics.

Second, there is no cost of conversion for commercial vehicles in Nigeria. It is FREE under the President’s Conversion Incentive Programme. The programme seeks to convert one million commercial vehicles to CNG/bi-fuel in the next three years. 

This is verifiable information as the National Union of Road Transport Workers (NURTW), whose members have benefitted recently issued statements acknowledging this fact.

The Punch also got it wrong with its “conversion explosion” slant in Edo State. It is important to emphasise that the explosion in Edo State happened because of substandard, uncertified, and poorly fabricated CNG cylinders, which exploded during an attempt to refill (not convert) at a station. 

It is equally important to reiterate that CNG is safe and cleaner to use. It is lighter and eight times less explosive than diesel and eighteen times less explosive than petrol. It is also more readily available and a more sustainable alternative for Nigeria’s energy security.

With one million vehicles running on CNG, overall demand annually will be 220 million standard cubic feet of gas a day, or 2.75% of our current daily gas production, of which only 16% is consumed locally. 

CNG distribution is also picking up with 75 new daughter stations under construction across the country, and additional containerized and mobile refuelling units are being set up by the private sector working closely with regulators. Mother station investments have totalled over $175 million in the past one year, with 65 new licences issued. 

Lastly, CNG conversion kits are suitable for older vehicles. The experience in Egypt, India, and Iran shows that old vehicles operate better and more efficiently on CNG than they would on petrol. Open loop non-sequential conversion kits exist for aged vehicles, and the PCNGI has succeeded in Lagos in fitting several old yellow buses with the kits – with videos of the beneficiaries to show.

The claim that the government is not leading by example on CNG is false. On the contrary, the conversion programme started with government institutions like the Nigerian Army and the Nigeria Police –  through the Police Trust Fund. The programme has now expanded to other MDAs like the Federal Road Maintenance Agency, the Ministry of Finance, and even the Federal Inland Revenue Service, as well as the PCNGI leadership team. More MDAs are signing up to the use of CNG for their vehicles. In addition, the federal government had already issued clear directives that only CNG-enabled vehicles should be purchased by government agencies. President Tinubu also directed that only such vehicles are to be approved by the Federal Executive Council. 

Nevertheless, The Punch’s suggestion in its editorial that banks can fund the conversion to CNG for Nigerians who want to convert their vehicles is welcomed.

The Tinubu administration is already partnering banks and other financial institutions through the Credit Corp Credit Access for Light and Mobility (CALM) programme. Through this credit system, civil servants and employees in the organised private sector can access loan to convert their vehicles from PMS to CNG/PMS Bi-Fuel. 

We recognise the indispensable role of the media in holding the government accountable and in keeping citizens informed. However, this role must be discharged with utmost responsibility and fidelity to truth, peace, and the collective well-being of the people. We are open and willing to work with the media to advance the advantages of the CNG initiative to the benefit of all Nigerians. 

Issued on behalf of PCNGi

Engr. Michael Oluwagbemi

Project Director/CEO

Presidential CNG Initiative