After the removal of the fuel subsidy on May 29, 2023, President Bola Ahmed Tinubu introduced the Presidential Compressed Natural Gas (CNG) Initiative in October of the same year. This initiative aims to provide more affordable, safer, and environmentally friendly energy solutions, particularly for mass transit purposes.
As part of various intervention programs to alleviate the impact of the pump price increase on the populace, the Federal Government allocated N100 billion from the N500 billion palliative budget to procure 5500 CNG vehicles (including buses and tricycles), 100 electric buses, and over 20,000 CNG conversion kits. Additionally, efforts have been directed towards the development of CNG refilling stations and electric charging stations.
Following meticulous planning and groundwork, the committee overseeing the initiative, led by oil and gas expert Michael Oluwagbemi, is poised to realize President Tinubu’s vision. Significant foundational reforms have already been implemented to facilitate the transition to CNG and electric vehicles, paving the way for the delivery of critical assets and the launch of the CNG initiative ahead of the first anniversary of the Tinubu administration on May 29.
To support the initiative, President Tinubu approved necessary tax and duty waivers in December 2023. The Presidential CNG Initiative (PCNGI) committee is collaborating with the private sector, which has responded with over $50 million in investments in refueling stations, conversion centers, and mother stations. Moreover, a safety policy document outlining 80 standards and regulations has been developed and approved to ensure the safe and reliable conversion to CNG.
The deployment of CNG buses and tricycles, with the vision of introducing at least one million natural gas-powered vehicles on Nigerian roads by 2027, heralds a significant shift in the country’s transportation sector. This transition aims to phase out the use of more expensive diesel and petrol, aligning with Nigeria’s abundant natural gas resources.
Various stakeholders, including JET, Mikano, Mojo, and Brilliant EV, are actively involved in assembling CNG buses and electric vehicles across the country. The initial phase targets the production of over 600 buses and thousands of tricycles, with plans for further expansion. Additionally, private sector entities like NIPCO, BOVAS, and MRS are setting up refueling stations and conversion centers nationwide.
The NNPC Limited, previously engaged in intermittent CNG initiatives, is rejoining the effort and is expected to announce locations for refueling and conversion centers soon. Collaboration with 22 agency partners, including the Standards Organisation of Nigeria and Nigeria Automotive Design and Development Council, aims to establish standards for natural gas vehicle conversion and associated appliances.
For effective monitoring, the PCNGI will launch the MYCNG.NG App, integrating the Nigeria Gas Vehicle Monitoring Systems to provide information on conversion and refueling sites. The Tinubu administration, in partnership with the private sector, is committed to establishing conversion workshops and refueling sites across 18 states before the year’s end.
This ambitious initiative underscores the collaborative efforts between the government and private sector stakeholders to foster economic growth, create employment opportunities, and promote sustainable energy solutions in Nigeria’s transportation sector.
