Presidential aide: FG has invested over $75m in CNG infrastructure

Olu Verheijen, special adviser to President Bola Tinubu on energy, says the federal government has invested over $75 million in the development of compressed natural gas (CNG) infrastructure as part of its efforts to promote cleaner energy across Nigeria.

Verheijen spoke on Monday at the ongoing 18th OTl Africa Downstream Energy Week in Lagos.

The government started canvassing for the adoption of CNG after the president announced the end of subsidised premium motor spirit (PMS), also known as petrol, on May 29, 2023.

On August 19, 2023, Tinubu announced the establishment of the CNG initiative.

Verheijen, who was represented by Eriye Onagoruwa, her technical adviser on energy, said the investment aligns with the government’s agenda to promote sustainable energy practices and reduce carbon emissions.

“Despite having an oil and gas industry that has been operational for over 80 years, Nigeria has only tapped into 4 percent of its resources since 2016,” she said.

“The government aims to foster transparency and efficiency by introducing incentives that encourage investment in CNG, liquefied natural gas (LNG), and electric vehicle technologies.

“These measures will not only enhance sector growth but also make energy solutions more accessible and environmentally friendly.”

Verheijen added that the initiative supports affordable and cleaner cooking alternatives, leading to healthier homes and a greener environment.

According to the special adviser, the government hopes that expanding CNG infrastructure will reduce dependence on traditional fuel and support Nigeria’s commitment to global sustainability goals.

Babajide Sanwo-Olu, Lagos state governor, represented by Biodun Ogunleye, commissioner for energy, reaffirmed the government’s commitment to cleaner energy.

Sanwo-Olu outlined the state’s plans to advance alternative fuels and create a supportive ecosystem for energy transition.

“Energy transition isn’t just about replacing one fuel source; it involves creating a holistic ecosystem that includes exploration, production, storage, and retailing,” the governor said.

Speaking on Nigeria’s recent downstream sector deregulation, Adetunji Oyebanji, chairman of the advisory board for the OTL Africa Downstream Energy Week, said the deregulation remains a transformative opportunity for enhancing competition, transparency, and efficiency.

Oyebanji said major developments, such as the launch of the Dangote refinery, would significantly influence the industry’s future.

He encouraged active participation in shaping Africa’s energy landscape, describing the CNG investment as a key step toward a sustainable energy future for Nigeria.

The 18th OTL Africa Downstream Energy Week, themed “Alliances for Growth,” welcomed over 100 participants and 30 exhibitors from the energy sector.