The President Bola Tinubu-led Federal Government has announced plans to attract $1bn in annual investments in Nigeria’s Compressed Natural Gas conversion projects.
According to a statement shared with Saturday PUNCH, the Programme Director of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, made this known during the launch of a CNG Conversion Centre at the commercial parks in Mile 2, Lagos, in collaboration with the National Union of Road Transport Workers.
He disclosed that in the last one year, over $500m had already been invested in the CNG space, saying, “We are on track for $1 billion this year,”
Oluwagbemi noted that the programme was not only focused on southern Nigeria but was making deliberate investments to extend CNG access to northern Nigeria, to reduce food transport costs and stabilise prices nationwide.
He added, “We have already hit close to $175 million. Major players like Greenville, NIPCO, AYM Shafa, Femadec Energy, and even the government, through the Midstream and Downstream Gas Infrastructure Fund, are investing.
“Our food comes from the North, and we want cheaper food in the South. That’s only possible when we reduce the cost of transportation through affordable energy like CNG.”
The PCNGi director stressed that the real growth was being driven by the private sector, while likening the current infrastructure phase to Nigeria’s early GSM rollout.
“We didn’t always have mobile towers everywhere. But we made progress because of private investment; and that’s what’s happening with CNG today.”
Also speaking at the event, Lagos State Secretary of the NURTW, Usman Teslim, lauded the Federal Government’s efforts, describing the initiative as a game-changer for commercial transport operators.
“This new model is a relief to drivers. Instead of leaving their vehicles parked for days, they can now complete conversions in three to four hours after work,” he said.
He further stated that the initiative is already impacting transportation fares, noting that PCNG-branded buses now offer a 50 percent reduction in fares.
Adding that with more CNG-powered vehicles expected to hit the roads, the benefits will expand even further.
“We are committed to supporting this transition. These buses are not just symbols of change; they are delivering real economic relief at our motor parks. It’s not just about the union; it’s about all Nigerians enjoying the gains.”
Credit: punchng.com
