SMEDAN partners firm to convert 100,000 vehicles to CNG, support SMEs

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has announced plans to convert 100,000 vehicles to compressed natural gas (CNG) in 18 months.

Charles Odii, director-general of SMEDAN, spoke on Friday at the unveiling of a CNG conversion and training center in Abuja.

Odii said the initiative — which is in collaboration with the presidential committee on the compressed natural gas initiative (PCNGi) and Rolling Energy — will support small and medium enterprises (SMEs).

“This new centre is designed to convert vehicles to run on CNG, an affordable and environmentally friendly alternative to traditional fuels,” he said.

“With its capacity to convert nine vehicles daily and a dedicated team of 20 technicians, the centre will help SMEs reduce transportation costs and adapt to changing energy needs.

“It will also train young Nigerians in CNG conversion, maintenance, and repair, equipping them with practical skills and opening up new business opportunities.

“We at SMEDAN are committing to taking 10 percent of those cars to be converted at our centres.

“By adopting CNG, we are helping SMEs cut costs while promoting sustainable energy practices. This effort is particularly timely as businesses face rising fuel costs following subsidy removal.

“SMEDAN is also committed to improving access to critical infrastructure for SMEs. We are upgrading Industrial Development Centres across the country to provide affordable tools and power tailored to the needs of small businesses.

‘FG SHOULD INVEST IN LONG TERM RENEWABLE SOLUTIONS’

Toks Omishakin, California’s secretary of transportation, applauded Nigeria’s efforts in adopting cleaner energy alternatives such as CNG, but urged stakeholders to look beyond CNG and invest in long-term renewable solutions.

“I see a tremendous opportunity for collaboration between California and Nigeria in exploring renewable energy solutions like solar, wind, and hydrogen,” Omishakin said.

On his part, Toyin Zubair, executive vice-chairman of the PCNGi, also commended SMEDAN and other stakeholders for their contributions.

He emphasised the need to harness Nigeria’s vast natural gas resources to drive the economy.

“Nigeria has one of the largest gas reserves in the world. By using this resource locally to power vehicles and industries, we can reduce costs and create a cleaner environment,” Zubair said.

Mubarak Danbatta, chief executive officer (CEO) of Rolling Energy, said the conversion process prioritises safety and affordability, making it accessible to SMEs.

“With less than N4,000, a vehicle can be fully fueled with CNG, compared to over N60,000 for petrol. This is a significant relief for businesses,” Danbatta said.

He also said CNG is not a business for the rich but for everyone.