The aggressive promotion of the Compressed Natural Gas (CNG) initiative in the last one year by the Federal Government recorded a slow down because of lukewarmness in some states.
Another reason for the below-expectation performance is the unavailability of gas as a result of which the Southeast and the Northeast geo-political zones failed to key into the plan.
Only 23 out of the 36 states have joined the CNG revolution, upscaled by the Bola Ahmed Tinubu Administration, following his “fuel subsidy is gone” pronouncement at inauguration on May 29 last year.
Despite the hiccups, Presidential Initiative on Compressed Natural Gas Initiative (Pi-CNG) has been able to distribute 150,000 kits and achieved the conversion of 50,000 vehicles from petrol usage to CNG. This is up from the availability of only 2,000 kits and conversion of 4,000 vehicles last years.
The CNG is designed as alternative to petrol use, following the increase in the pump price of petrol subsidy payment payment.
Besides, CNG is a cleaner energy.
Pi-CNG Programme Director, Michael Oluwagbemi, said: “President Tinubu’s singular policy of eliminating subsidies on petrol made CNG a much more viable alternative since it is 70-90% cheaper, cleaner, safer and more reliable”.
It was gathered also that the Pi-CNG record the following feats:
•Production of 807 CNG buses;
•Procurement of 3,500 CNG tricycles; and
•Training of 1,000 auto-technicians nationwide
According to projections of the Presidential Initiative, 100,000 cars are to be converted next year, with the figure rising to 1,000,000 in 2027.
The rapid CNG Initiative, which has attracted about $450 million may lead to investment drive of about $3 billion in 2027.
But out of the six geopolitical zones, the CNG’s Conversion Incentive Programme (CIP) has been embraced in the Northcentral and Southwest, with growing acceptance in the Northwest and Southsouth.
There are plans to extend the CIP to Northeast and Southeast next year with gas prospect in the affected zones.
According to the Pi-CNG 2024 Year End Updates obtained exclusively by our correspondent, there was an appreciable progress on CNG from 2,000 kits and 4,000 cars in 2023 to 50,000 cars this year.
The Pi-CNG has three-pronged objectives. They include:
•The PCNGI role is to incentivise adoption of CNG for Mobility, by deploying and financing CNG Vehicles for Mass Transit , distributing CNG Conversion Kits at discount and providing conversion incentives including training.
Infrastructure and CNG supply gap that exists across the country to accelerate access to CNG and thus cheaper transportation.
•The PCNGI is to enable the regulatory process for CNG to ensure zero incidents while enabling rapid adoption and promoting reliability, safety and inter-operability.
Other achievements recorded by the Pi-CNG are: increase in conversion centres from seven last year to 150; CNG refueling infrastructure rose from 12 to 58; Mobile refueling unit from 0 to 7; modular CNG units from 0 to 5; number of Mini-LNG increased from 1 to 4; procurement of 807 buses and 3, 500 to be distributed; and establishment of three Manufacturing Hubs among others.
The investment drive was “put at $450 million so far.”
The updates projected that by 2027, there would have been 1,000 conversion centres across the country with 1,000,000 kits and 1,000, 000 CNG-powered cars.
The investment in CNG is estimated to hit $3 billion in 2027.
Responding to questions, Olugbemi added that the bold decision of President Tinubu to remove petrol subsidy has led to the significant success on CNG.
He said other administrations had not paid attention to a cleaner energy drive as done by this administration.
He said: “Indeed, the President’s vision of nationwide mass transit that seeks to stimulate demand (like the onversion Incentive Programme (CIP) that provides for one million free conversions for mass transit vehicle owners) thereby creating business friendly investment environment in the CNG sector has been a distinguishing attempt from previous failed attempts to drive CNG adoption.”
Olugbemi explained the inclusive approach adopted by the government and why the private sector was buying in into CNG.
On the expansion plan of the initiative for next year, he added: “Much of the success boils down to the inclusive approach to the implementation that has seen private sector jump in and really invest in driving adoption.
“Pi-CNG has acted as the catalyst ensuring not to try to replace private sector initiative and innovation.
“For 2025, we hope to consolidate on the private sector investments. We hope to drive both conversion and OEM vehicle adoption, while expanding infrastructure especially to the North that currently lacks it on the back of major infrastructure breakthroughs including mini LNG projects and AKK Pipeline completion of the administration.”
Olugbemi assured that the CNG initiative will soon be fully activated in the North-East and Southeast through CIP.
He said: “CIP is the CIP that provides free CNG conversion to commercial drivers . Enugu and Abia CIP will be activated in February when they get gas. Gas distribution network is limited. It was in seven states when we started the programme but now covers 17 which are part of the CIP.
“You need daughter stations and CNG dispensing to achieve it and private sector actors are the ones investing.
“We hope to extend to the Northeast before the end of 2025 to early 2026 when gas projects in Ajaokuta gets completed.”
