Significant private investment and substantial job creation have marked the first year of Nigeria’s accelerated push towards Compressed Natural Gas (CNG) vehicles, according to the programme coordinator for the Presidential Compressed Natural Gas Initiative (PCNGI).
Speaking to journalists at the State House on Monday, Michael Oluwagbemi reported that the initiative has attracted over $491 million into the nation’s burgeoning AutoCNG sector. This financial influx, he stated, has corresponded with the creation of more than 84,000 jobs – comprising over 9,000 direct positions and approximately 75,000 indirect employment opportunities. The drive follows the federal government’s removal of the petrol subsidy in 2023, aiming to transition Nigeria’s transport system towards more affordable and cleaner energy.
A key aspect highlighted by Oluwagbemi is the dramatic increase in the country’s capacity to convert existing petrol or diesel vehicles to run on CNG (or bi-fuel systems). He noted that the number of facilities capable of performing these conversions has surged from just seven at the program’s inception to over 200 currently. This expansion was significantly propelled by the Conversion Incentive Programme (CIP), launched by President Bola Tinubu last August, which has already facilitated the recruitment of 3,000 new technicians.
The CIP aims to subsidize or provide free conversions for up to one million vehicles, targeting public transport, ride-hailing fleets, and government vehicles. Supporting this, 22,000 conversion kits were procured, with deliveries commencing in October 2024 via the Federal Ministry of Finance. To further scale up this capacity, Oluwagbemi outlined plans to establish 10,000 conversion centers nationwide by the second quarter of 2025, a rollout that began in December 2024. Additionally, a partnership with CreditCorp offers financing options to help public servants cover conversion costs.
Demonstrating commitment, the Ministry of Finance procured 655 buses designed for alternative fuels – 421 powered by CNG and 36 electric models, among others. Oluwagbemi confirmed that 405 of these buses have already been deployed, with some allocated to labour unions as part of ongoing wage negotiations.
However, the initiative’s success has led to increased demand, particularly from an estimated 30,000 private vehicle owners who have made the switch. Oluwagbemi acknowledged this has strained existing refueling infrastructure, causing supply bottlenecks at some stations.
To tackle this, the PCNGI has introduced the Refueling On-Lending Programme, designed to finance the rollout of refueling infrastructure to approved centers. This program is currently deploying across 25 sites in 15 states. The first station commenced operations in Kwara, with facilities in Kogi, Ekiti, Rivers, and the FCT anticipated to be operational before May 1, 2025. Further rollouts are planned for Kaduna, Abia, Enugu, Niger, Kano, and Benue by June 12.
Oluwagbemi emphasized the critical role of private sector partnerships, noting an intensive engagement campaign from May to November 2024 yielded significant commitments. Key contributions include NNPC Ltd deploying 12 CNG stations with 8 more imminent and 100 planned; NIPCO importing equipment for 32 stations (22 operational); Bovas constructing 8 stations; and AY Shafa completing one with nine more underway. Other firms like Ibile Oil and Gas, MBH, and Mikano are also actively investing.
Addressing safety, Oluwagbemi spoke on a recent CNG-related incident in Benin, attributing it to the illegal fabrication of cylinders by individuals he termed “economic saboteurs,” and confirmed arrests have been made. To bolster safety and oversight, he announced the upcoming launch of the Nigeria Gas Vehicles Monitoring System (NGVMS). This system aims to ensure only certified vehicles and tanks can access refueling points and is expected to be fully operational by the end of 2025.
The PCNGI represents a major national effort to reshape Nigeria’s automotive energy landscape, balancing rapid expansion and investment attraction with the critical need for adequate infrastructure and robust safety protocols.