BY Bunmi Aduloju
The federal government says a conversion incentive will be developed for Nigerians, especially road transport operators, to convert their existing vehicles to run on compressed natural gas (CNG).
Michael Oluwagbemi, chief executive officer (CEO) and programme director, presidential compressed natural gas initiative (P-CNGi), spoke at a stakeholders meeting in Lagos on Wednesday.
On April 29, the federal government said it would launch the CNG initiative ahead of the first anniversary of President Bola Tinubu’s administration on May 29.
Oluwagbemi said the financing programme will also be unveiled on May 29.
“I will not let the cat out of the bag. On May 29, I will be announcing what we call the conversion incentive and asset deployment programme,” he said.
“We recognise that we do not have upfront passion but we also recognise that conversion is really profitable and within three to four months, you will break even on your conversion if you do.
“So, we are mobilising the private sector, development funds, ECOWAS Bank of Investment and Development (EBID), Development Bank of Nigeria (DBN), Bank of Industry (BOI), and even commercial banks are on queue, awaiting and willing to finance this sector and we will be rolling out for the benefit of the sector.”
Oluwagbemi said the initiative had its first investors forum in December 2023.
He said over $50 million in investment has been mobilised directly to state governments since December.
Oluwagbemi said this is higher than any amount “that the CNG sector in the last ten years has had”.
“This is just the beginning. NIPCO is investing, Bovas is investing, Fermadec is investing, tons of Nigerian companies are investing in the sector because they see that the present administration is serious about moving this country forward, leveraging gas resources that that God has given us,” he said.
‘OVER 50 FUEL STATIONS HAVE CNG PUMPS IN THE COUNTRY’
Oluwagbemi said the number of fuel stations with compressed natural gas (CNG) pumps in Nigeria will increase to 50 by the end of May.
According to Oluwagbemi, this represents a significant growth from the 17 fuel stations in the country at the start of 2023.
“Early last year, the entire nation had maybe 17 (CNG) refuelling stations,” he said.
“As we speak, by the end of the month, there will be nothing less than 50 of them. And that number continues to expand. If you go to the NMPDRA system, which is the system of operators of these stations, currently, there are more than 120 of them awaiting approval for installation of the CNG pumps.”
He said the country is expediating the process, adding that in the next few weeks, most of the marketers will receive the licences — even though it typically takes about three to four months for the approval process to be completed.
Speaking further, Oluwagbemi said the new initiative of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) mandating the installation of CNG pumps by oil marketers as a requirement for licencing will revolutionise the sector.
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