It was an engagement with a difference. It was not just another interactive session with media executives in Lagos. It was an occasion where the top echelon of the Presidential Compressed Natural Gas Initiative (PCNGI) came to illuminate many areas of the Tinubu Administration’s policy to strategically move Nigeria from petrol to the cheaper, more sustainable and environmentally friendly compressed natural gas.
President Bola Tinubu, in 2023, launched the Presidential Compressed Natural Gas Initiative, PCNGI, in the aftermath of the fuel subsidy removal which triggered astronomic hike in the pump price of petrol and galloping inflation nationwide.
The President, therefore, gave the agency the primary responsibility of promoting the widespread adoption of Compressed Natural Gas (CNG) and electric vehicles especially in mass transit systems, driving cost savings, job creation, energy security, and environmental sustainability.
Though many Nigerians keyed into the project, initial hiccups got some people frustrated. The initial hiccups, the Presidential Compressed Natural Gas Initiative team explained, arose majorly because of the inherent difficulty and time required to build the extensive infrastructure required for the project. But the good news is that there may not be any cause for apprehension again, as the programme is now running very well.
The PCNGI team, led by its Executive Chairman, Barrister Ismael Ahmed, and Programme Director, Engr. Michael Oluwagbemi, spent almost three hours with media executives at the Sheraton Hotel and Towers, Lagos, on Wednesday, outlining the efforts and investments that the Federal Government has committed into the project.
And the good news, according to Barrister Ismael Ahmed, is that the project is already yielding the desired result, bringing tangible reliefs to Nigerians who have keyed into it. President Tinubu, the Executive Chairman enthused, is irrevocably committed to the success of the initiative because he wants to be remembered not only as the President who removed petrol subsidy but also as the leader who provided a sustainable alternative.
The team assured that the compressed natural gas revolution is here to stay as Nigeria is well endowed to make a huge success of it. Nigeria, the team emphasized, is fundamentally a gas country, possessing “over 45% of Africa’s proven gas resources, amounting to 208 trillion cubic feet, enough to last 99 years, with unproven estimates reaching 350 trillion cubic feet”. This contrasts with the long-held belief of Nigeria being primarily an oil-rich nation.
PCNGI’s GIANT STRIDES
Engr. Oluwagbemi detailed the significant strides that the PCNGI has made in just 12 months. They include:
* Establishment of over 300 new CNG conversion centers nationwide, a dramatic increase from just seven previously.
* Expansion from 5 states to 20 states across all six regions benefiting from PCNGI initiatives.
* Distribution of 5,950 EV or CNG platforms, including buses and tricycles, often through labor unions as part of agreements following fuel subsidy removal.
* Training of 5,500 conversion technicians, with plans to train 25,000 roadside mechanics.
* Mobilization of over $980 million in private sector investment, including a significant N725 billion investment by Dangote Industries, validating the private sector-led approach.
* Initiatives to promote local manufacturing of vehicles and components, working with Nigerian auto manufacturing companies like Innoson, Peugeot, and Nord Motors.
According to Oluwagbemi, the PCNGI’s mandate is built on three crucial “As”: Acceptability, Accessibility, and Affordability. He described CNG as being far safer, cleaner, and more sustainable than traditional fuels, with the potential to reduce transportation costs by 80-90%.
The Program Director highlighted the story of an Uber driver whose daily earnings significantly increased after converting to CNG, demonstrating the immediate positive impact on livelihoods. The ultimate goal is to convert “one million vehicles by 2027”, which is projected to create “75,000 direct and 300,000 indirect jobs”.
ADDRESSING HURDLES
Though the PCNGI team are happy and thumbing their chests about the progress so far, they candidly identified some challenges hindering the wider adoption of CNG. They called for robust collaboration with the media executives and their various organisations as they begin intense advocacy for the wider adoption of the laudable CNG initiative. The team emphasized that such collaboration, involving government, the private sector, and informed public engagement, is absolutely necessary to dismantle the hurdles.
Project Director Engr. Michael Oluwagbemi acknowledged that the relief from CNG adoption has not been as instant as the impact of the fuel subsidy removal, primarily due to the inherent difficulty and time required to build extensive infrastructure.
He identified other key challenges as:
- Acceptability: Public fears about safety, despite natural gas being significantly safer than petrol or diesel, require intensive awareness campaigns.
- Accessibility: The current limited number of CNG filling stations means convenience is still a barrier for many Nigerians.
- Affordability: The cost of conversion kits, though aimed to be reduced, remains a concern for many.
To mitigate these risks, PCNGI is implementing several measures:
- Safety: Working with regulators to launch a Nigerian Gas Vehicle Monitoring System to ensure traceability and safety standards. Standards for the industry have been developed and launched, along with national operational standards for training personnel.
- Procurement: Encouraging the development of CNG industrial parks nationwide to build a domestic supply chain and reduce reliance on imports, which currently face logistics delays.
- Disinformation: Battling “disinformation campaigns” by those who do not wish the program to succeed politically or economically.
MEDIA COLLABORATION
To avoid any misconception, the PCNGI clarified its role as a catalyst in the process and not a replacement for the private sector, stressing that sustainability hinges on private investment. The government’s role, the team emphasized, is to set and enforce regulations, facilitate investments, and provide incentives such as VAT and import duty waivers for CNG vehicles and components. It was highlighted that importing CNG vehicles is already more financially favorable due to these waivers.
Both Barrister Ahmed and Engr. Oluwagbemi appealed to the media for what they termed as “patriotic journalism”, urging the executives to use their various media to educate the public accurately, hold the government accountable on permits and domestic supply obligations, and avoid publishing “wrong articles” that may suggest government direct control of prices or building gas stations.
They stressed the importance of data-driven policy and avoiding the mistakes of the past fuel subsidy regime, which lacked data and fueled corruption. The Executive Chairman confirmed that all PCNGI office vehicles are 100% CNG-powered, and the President’s own vehicle is being converted as a leading example.
NEXT: Meeting Barrister Ismael Ahmed, the driver of Nigeria’s CNG revolution
