Project director: Presidential CNG initiative has attracted over $200m investment since launch

The presidential compressed natural gas initiative (Pi-CNG) says over $200 million has already been invested across the value chain of the scheme.

Reacting to a media report in a statement on Wednesday, Michael Oluwagbemi, project director and chief executive officer (CEO) of Pi-CNG, said contrary to the “misinformation” about CNG, Nigerians are embracing and converting their petrol-powered vehicles to CNG-enabled vehicles.

He said since the launch of the initiative, the response has been positive.

“Following recent media reports, we find it necessary to address certain misinformation regarding the Presidential CNG Initiative,” Oluwagbemi said.

“As a response to the high cost of petrol and the attendant rise in the cost of transportation, following the removal of fuel subsidy, President Bola Tinubu launched the Presidential CNG Initiative to provide a cheaper and cleaner energy source for Nigerians.

“To date, over 100,000 vehicles have been converted from petrol to CNG/bi-fuel-powered, and more conversion centres are being established across the country.

“In addition, investors are ramping up the development and deployment of CNG infrastructure, with over $200 million already invested across the value chain. Thousands of new jobs and economic opportunities are opening up along the line.”

‘2,000 JOBS PROVIDED, 75 STATIONS UNDER CONSTRUCTION’

Oluwagbemi said going by the level of progress being made regarding the adoption and deployment of CNG infrastructure, there are concerns about “certain instances of misinformation against this epochal initiative by a section of the media”.

The CEO said one of the issues raised against the CNG initiative and its implementation is the ease of conversion.

“We see this as an opportunity rather than a challenge, and we are already deepening the development of CNG infrastructure with our partners,” he said.

Oluwagbemi said the number of conversion centres has “risen from seven in 2023 to more than 140 across the country”, and certainly not 50 centres as claimed by media reports.

“Facts are sacred… to claim or assert without veracity and evidence is an obvious attempt at mischief,” the CEO said.

“It is surprising how the choice of petrol, for which Nigeria spent about $10 billion annually on subsidy, and CNG which has the potential to save the nation $3 billion while adding $2 billion revenue to the national purse in the next three to four years, is an issue of toxic debate.

“In addition, more than 2,000 Nigerians have been employed in these conversion centres, with more jobs in the offing as CNG penetration ratchets up.

“In the past year, the private sector invested over 2 billion naira to establish these conversion centres, and another 6 to 10 billion naira will go into setting up more centres to meet the targeted 1,000 centres required to transform the nation’s energy dynamics.

“Second, there is no cost of conversion for commercial vehicles in Nigeria. It is free under the President’s Conversion Incentive Programme. The programme seeks to convert one million commercial vehicles to CNG/bi-fuel in the next three years.”

The PCNGI boss also debunked reports on “conversion explosion” in Edo state.

Oluwagbemi said CNG is safe and cleaner to use, lighter and eight times less explosive than diesel and eighteen times less explosive than petrol.

It is also more readily available and a more sustainable alternative for Nigeria’s energy security, he said.

“It is important to emphasise that the explosion in Edo State happened because of substandard, uncertified, and poorly fabricated CNG cylinders, which exploded during an attempt to refill (not convert) at a station,” he added.

“CNG distribution is also picking up with 75 new daughter stations under construction across the country, and additional containerized and mobile refuelling units are being set up by the private sector working closely with regulators.

“Mother station investments have totalled over $175 million in the past one year, with 65 new licences issued.”

‘CONVERSION KITS EXIST FOR AGED VEHICLES’

Oluwagbemi further said the open loop non-sequential conversion kits exist for aged vehicles, adding that the PCNGI has succeeded in fitting several old yellow buses with the kits in Lagos — “with videos of the beneficiaries to show”.

“CNG conversion kits are suitable for older vehicles. The experience in Egypt, India, and Iran shows that old vehicles operate better and more efficiently on CNG than they would on petrol,” he added.

He also said the claim that the government is not leading by example on CNG is false.

“On the contrary, the conversion programme started with government institutions like the Nigerian Army and the Nigeria Police –  through the Police Trust Fund,” he said.

“The programme has now expanded to other MDAs like the Federal Road Maintenance Agency, the Ministry of Finance, and even the Federal Inland Revenue Service, as well as the PCNGI leadership team.

“More MDAs are signing up to the use of CNG for their vehicles. In addition, the federal government had already issued clear directives that only CNG-enabled vehicles should be purchased by government agencies. President Tinubu also directed that only such vehicles are to be approved by the federal executive council.

Nonetheless, Oluwagbemi welcomed the suggestion that banks can fund the conversion to CNG for Nigerians who want to convert their vehicles.

He also said the government is open and willing to work with the media to advance the advantages of the CNG initiative to benefit all Nigerians.