CNG: 50,000 Automobiles Transformed, Investments Hit $500m – FG

The Presidential Compressed Pure Fuel Initiative, an company of the Federal Authorities, has revealed that Nigeria’s push in direction of various transportation fuels has attracted over $500m in investments and transformed greater than 50,000 autos to run on Compressed Pure Fuel inside its first 12 months.

Dismissing a media report that claimed a sluggish rollout of CNG infrastructure throughout the nation, the Programme Director and Chief Government of PCNGI, Michael Oluwagbemi, described the declare as “alarmist” and “unreflective of the fast progress” achieved underneath President Bola Tinubu’s administration.

In a press release issued on Monday, Oluwagbemi mentioned the programme, which formally commenced in Could 2024, has already created over 10,000 direct jobs and led to the institution of 255 new automobile conversion centres and 53 CNG meting out daughter stations nationwide.

“We be aware the newest alarmist headlines on the destiny of the thriving CNG sector by a sceptical part of the media. However such narratives ignore the unimaginable progress made in simply seven months,” the assertion learn.

The PCNGI boss defined that the initiative was launched to incentivise the adoption of CNG and electrical autos, facilitate investments within the various power transport sector, and coordinate regulatory efforts to drive progress.

Oluwagbemi recounted that previous to Could 2024, the adoption of CNG in Nigeria was just about non-existent, with solely 11 CNG stations nationwide, remnants of a pilot scheme initiated by the Nigerian Nationwide Petroleum Firm Restricted in 2017.

He mentioned public curiosity was low and misinformation about CNG use was widespread. However a 12 months later, the story has modified dramatically, in line with him.

“From Could 2024, the PCNGI got down to implement its mandate according to the directive and imaginative and prescient of Mr President, which was to: Incentive the adoption of CNG and EV autos to make sure sustainable transportation for all Nigerians, facilitate investments into the choice power sector for transportation and coordinate regulation of the rising sector for fast progress.

“As a result of the preliminary need of the President was greeted with scepticism, the start-up work of the PCNGI was to embark on an intensive consciousness marketing campaign which was performed from Could to October 2024; hardly any CNG autos have been on our roads and no demand on the few eleven CNG stations nationwide since a 2017 pilot by NNPCL,” he acknowledged.

The PCNGI boss mentioned many, even probably the most ardent adherents, weren’t satisfied anybody would need CNG autos, stressing that misinformation and pretend information on CNG dominated the media area.

“In a single 12 months, the CNG sector has attracted over $500m in investments and created over 10,000 direct jobs. 255 new conversion centres that didn’t exist final 12 months and 53 daughter stations exist right this moment because of a few of these investments.

“One 12 months out, we’re happy that even the doubting Thomases are singing a brand new tune. With over 50,000 autos and rising to 100,000, the queues at CNG stations are naturally going to rise due to such an unprecedented improve (from a mere 4,000) in automobile rely because of large incentives supplied by the administration and the breakthrough in consciousness as a result of financial advantages of the swap.

“Nigerians love CNG, and the programme is working. With over 50,000 transformed autos on Nigerian roads, and projections to hit 100,000 quickly, it’s anticipated that CNG station queues will develop as a result of unprecedented rise in demand,” Oluwagbemi acknowledged.

Based on the PCNGI, the non-public sector has been pivotal in increasing infrastructure. Two new CNG daughter stations have been inaugurated final week in Abuja by AY Shafa and Femadec, each of that are concentrating on 30 extra stations between them over the following 12 months.

Femadec can also be main efforts to construct CNG ecosystems in 20 universities. Greenville, one other key investor, is rolling out 51 liquefied compressed pure gasoline stations throughout the North and South-East areas, together with distant areas like Yola. Different deliberate website activations embody Port Harcourt, Ado-Ekiti, Lokoja, Aba, Enugu, and Abuja, anticipated to go stay inside the subsequent two to 4 months.

“In Ilorin, the launch of a refuelling initiative reworked the native economic system. We’re replicating that mannequin nationwide,” Oluwagbemi acknowledged.

NNPCL can also be ramping up its infrastructure, increasing from 12 to twenty CNG stations, with 40 extra anticipated within the second section of its rollout. Bovas is launching two fashionable CNG websites in Ibadan, whereas NIPCO plans to finish eight new stations along with the 23 presently operational.

Additional boosting confidence within the sector, the Midstream and Downstream Fuel Infrastructure Fund just lately awarded fairness investments to 10 new undertaking builders. Three of those investments are focused at CNG station growth, including to the N123bn beforehand invested by the fund final 12 months.

Regardless of these strides, Oluwagbemi urged Nigerians to be affected person, noting that large-scale power transitions take time. “It took over 70 years for Nigeria to develop into hooked on petrol and diesel. It is going to take greater than seven months to wean ourselves off it,” he mentioned.

He criticised a latest report for allegedly downplaying progress and selling a “adverse narrative” about CNG infrastructure. “We doubt anybody would wish to swap a bi-fuel automobile, already working on each CNG and petrol, again to petrol solely,” he mentioned, including that CNG use can scale back gas prices by as a lot as 90 per cent in some journeys.

Reiterating the federal government’s dedication to the CNG transition, Oluwagbemi mentioned the PCNGI is working throughout the worth chain to make sure that President Tinubu’s guarantees to Nigerians are fulfilled.

“Nigeria is making progress with respect to CNG infrastructure however engineering feats take time. It took over seventy years to get hooked on petrol and diesel, it is going to take greater than seven months to be weaned off the habit,” he acknowledged.