Compressed natural gas initiative: Nigeria ready to convert 55,000 vehicles at discounted rate - FG

gas flare (1)

The federal government has unveiled the first Compressed Natural Gas (CNG) Conversion Centre in the North-west, with a declaration that Nigeria's huge gas deposit can power the nation's transportation and industrial sectors for 97 years at a cheaper rate than petrol.

Project Director Presidential Compressed Natural Gas Initiative (P-CNGi) Engr. Michael Oluwagbemi stated this during the groundbreaking for the construction of the CNG Conversion Centre in Kakau, Chikun local government area of Kaduna state, by Rolling Energy Providers Ltd Kaduna.

He said the huge gas deposit across the country, which, according to him is cheaper and safer, informed President Bola Ahmed Tinubu's resolve to invest in the use of CNG as alternative to fuel in the two sectors.

Oluwagbemi said Nigeria sat on 6 trillion ft³ of gas, the largest gas deposit in Africa, adding that to effectively serve the country, there is need for 1,000 CNG conversion centres across the country, which will in turn provide at least 10,000 direct jobs and hundreds of thousands of jobs in the CNG value chain.

When completed, he said, the centre will convert petrol vehicles to dual fuel engine, enabling them to run on either CNG or Premium Motor Spirit (PMS).

The project coordinator said the federal government is piloting the conversion of the PMS vehicles to gas engines through its palliative project captured in the 2023 supplementary budget.

He said under the project, 55,000 vehicles will be converted at subsidised rate.

"Nigeria is a gas country, as it sits on over 6 trillion ft³ of gas, 30 states have the gas resource. There is gas everywhere from Akwa Ibom to Ogun, from Sokoto to Bayelsa states. Our movement to natural gas is movement to Nigeria's own resources and stoppage of reliance on foreign energy.

"Nigeria is long overdue for this gas revolution, we are a gas country that happens to have crude oil. We have gas in large quantity that can last us for 97 years if fully utilised. So, we should take gas seriously for industrialisation and transportation. Natural gas is safe, lighter than air, not combustible, cleaner and 40% cheaper than pms. It is sold in Abuja now for about N230 to N280 per kg.

"President Tinubu had after the sound economic policy of fuel subsidy removal that was importing foreign fuel into Nigeria, to be smuggled to neighbouring countries, exporting job and importing poverty, decided to replace it with use of gas for the benefit of Nigerians and development of Nigeria. We are going to convert 55,000 vehicles at discounted rate, while over 11,500 platforms, including buses and tricycles that will be using CNG will be procured. President Tinubu targets conversion of 1 million out of 17 million vehicles plying Nigerian roads before the end of 2027," he said.

Also speaking, Chief Executive Officer Rolling Energy Limited and proprietor of the conversion centre, Mubarak Umar, said his firm was committed to assisting the federal government towards delivering the CNG programme.

He said his company would be building six additional centres across the country within one year.

The Abuja version

A similar version of the CNG centre was commissioned in the Federal Capital Territory Abuja.l

Speaking at the occasion, Minister of Transportation Said Alkali said the adoption of a more environmentally friendly energy source like the CNG would help reposition the transportation sector.

A statement by Director Press and Public Relations of the Ministry, Olujimi Oyetomi, said the minister was represented by the Acting Director, Road Transport and Mass Transit Administration, Akhidenor Cynthia.

"The adoption of a more environmentally friendly energy source like the CNG, which the country has in abundance will reposition the transportation sector in urban cities across the country and put Nigeria in tandem with what the world desires at this time.

"Greenhouse gas emissions pose health hazards and dire environmental consequences, and Nigeria cannot afford to lag considering that she is a signatory to Green House Emission policy aimed at reducing carbon emission in the environment," the minister had said.

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