The Presidential Compressed Natural Gas Initiative has secured investments exceeding $491 million and created upwards of 84,000 jobs in only one year, representing a significant achievement in Nigeria’s efforts to pursue cleaner and more cost-effective energy options.
Programme Coordinator Michael Oluwagbemi revealed this during a media briefing at the State House on Monday, highlighting the initiative’s pivotal role in transforming the country’s automotive and energy sectors.
“Over 9,000 direct jobs and 75,000 indirect jobs have been created as part of the push to transition Nigeria’s automotive ecosystem to cleaner and more affordable energy sources,” Oluwagbemi stated, linking the initiative’s success to the removal of the petrol subsidy in 2023.
He pointed out that vehicle conversion capacity, the ability to switch cars from petrol or diesel to bi-fuel (CNG/petrol) systems had significantly expanded from just 7 facilities at inception to more than 200 today.
A major boost came from the launch of the Conversion Incentive Programme (CIP) by President Bola Tinubu in August 2024.
“The CIP has already resulted in the recruitment of 3,000 new technicians,” Oluwagbemi said.
The CIP targets the free or subsidized conversion of up to one million vehicles, especially those in public transport, ride-hailing, and government services.
As part of the effort, 22,000 conversion kits were procured and began distribution in October 2024 via the Federal Ministry of Finance.
To further support this scaling effort, Oluwagbemi disclosed that “the PCNGI plans to establish 10,000 conversion centers by the end of Q2 2025,” following its kick-off in December 2024.
A new financing model, developed in collaboration with CreditCorp, will also help public servants convert their vehicles through loans or discounts.
In a bid to prove the viability of CNG and electric vehicles, the Ministry of Finance procured 655 buses, 421 CNG-powered and 36 electric with 405 already deployed.
“Some of these have been allocated to labor unions as part of ongoing wage negotiations,” Oluwagbemi confirmed.
He also noted the growing popularity of CNG.
“Over 30,000 private-sector conversions have increased demand, leading to bottlenecks at some refueling stations,” he said.
To address this, the PCNGI launched the Refueling On-Lending Programme to support infrastructure growth. Rollouts are currently ongoing at 25 sites across 15 states.
“The first site went live in Kwara, with others in Kogi, Ekiti, Rivers, and the FCT expected before May 1, 2025,” he said, adding that more stations in Kaduna, Abia, Enugu, Niger, Kano, and Benue will be operational by June 12.
Between May and November 2024, PCNGI undertook an aggressive campaign to attract private sector investment.
“Several firms are now committing capital,” Oluwagbemi said.
Some key private sector contributions include:
NNPC Ltd: 12 CNG refueling sites operational, 8 more on the way by Q2 2025, and approval for 100 additional sites in 18–24 months.
NIPCO: Equipment has been imported for 32 daughter stations, 22 are operational and 8 are under construction.
Bovas: 8 stations are under construction.
AY Shafa: 1 station completed, 9 more underway.
Others: Ibile Oil and Gas, MBH, and Mikano are also building both daughter and mother stations.
On safety, Oluwagbemi addressed concerns stemming from a recent CNG-related incident in Benin City, attributing it to the actions of “economic saboteurs” involved in illegal cylinder fabrication. “Arrests have been made,” he confirmed.
To strengthen oversight, he announced the upcoming launch of the Nigeria Gas Vehicles Monitoring System (NGVMS), a regulatory platform to ensure that only certified vehicles and tanks can refuel at approved stations.
“The NGVMS is expected to be fully operational by the end of 2025,” Oluwagbemi stated.
