In a groundbreaking announcement, Michael Oluwagbemi, the CEO and project director of the Presidential Compressed Natural Gas Initiative (PCNGI), revealed the federal government’s ambitious plan to deploy one million gas-powered vehicles on the roads by 2027. This announcement was made following the successful hosting of the inaugural compressed natural gas stakeholders and investors’ forum. In his presentation titled ‘An In-Depth Analysis of the CNG System in Nigeria’, Oluwagbemi shed light on the remarkable achievements embedded within the ambitious targets and aims of the CNG project. The federal government’s plan means an annual conversion rate of 250,000 vehicles.
Nigeria’s plan for a greener future involves building 40,000 workshops focused on converting automobiles to use natural gas, while also generating 750,000 employment opportunities by 2027 along the expanding CNG value chain. The recent conference further solidified Nigeria’s determination and compatibility to transition towards a more Eco-friendly and resourceful gas-dependent economy. He claimed that the high-power Forum, centered around the theme “Nigeria’s CNG Revolution: Harnessing Opportunities for a Sustainable Future” involved presentations, panel discussions, an exhibition and networking among those who attended such as prominent figures, key stakeholders, local and global experts in both public and private sectors, from various sectors including energy, transportation, finance, and the environment.
Introduction of CNG will have an impact on transportation costs.
At the event, Stakeholders and Investors had the chance to appraise Nigeria CNG sectors prospects and evaluate the government’s ongoing endeavors in promoting CNG as a viable and eco-friendly fuel alternative for the country, among other things. He mentioned the event was also used to analyze the regulatory framework in comparison to global standards and also to explore the potential economic prospects that exist in the sub-sector as they shift towards utilizing a gas-powered mobility system in the near future. Oluwagbemi emphasized the advantageous features of CNG and its role in reducing the expenses faced by Nigerians, as the primary motive behind the initiative was to improve the affordability of daily life.
According to Oluwagbemi, the introduction of CNG will have a substantial impact on transportation costs and overall quality of life. Furthermore, he emphasized that the framework implemented by PCNGI for the CNG initiative is highly feasible, as it addresses both the industry’s Supply and Demand aspects comprehensively. The primary emphasis lies on conversion Centers and encouraging Investment on the supply side, adopting a comprehensive end-to-end approach. He highlighted the establishment of specific partnerships with the Gas Aggregation Company of Nigeria (GACN) and its associates to guarantee adequacy in the upstream sector.
CNG as a substitute fuel brings economic benefits.
Oluwagbemi also mentioned that the endeavor involves actively involving the organized association of commercial transport operators to incorporate six million commercial vehicles into the CNG system. Toyin Subair, another PCNGI member, supports the idea that Nigeria adopting CNG as a substitute fuel brings economic benefits and emphasizes that this transition will improve the lives of all Nigerians while boosting the nation’s economy. According to Ms. Subair, one positive aspect of this endeavor is the fact that there is no need to provide Subsidies or purchase imported gasoline, given Nigeria substantial gas resources. Also, the 6 million commercial vehicles slated for conversion are domestically owned.
Dr. Armstrong Takang, the CEO of the Ministry of Finance Incorporated (MOFI) and a member of the PCNGI steering committee, emphasized that a crucial aspect of this initiative is to maximize the training of competent engineers. The program also includes rigorous monitoring of their professional performance, with a particular emphasis on ensuring the safety standards for gas-fueled vehicles. Takang asserted that these measures would establish a strong basis for the growth and longevity of Nigerian CNG ecosystem. On his part, Mohammed El-Gawish, a renowned expert in CNG and one of the panelists, affirmed the viability and potential of Nigeria CNG endeavor.
The implemented roadmap indicates a bright future.
Mr. El-Gawish praised Nigeria’s plans and proposed actions, drawing comparisons to Egypt’s successful initiative that took only two and a half years to achieve. According to him, the promising roadmap implemented by Nigeria indicates a bright future. In response to concerns about the conversion of vehicles to CNG, Mr. Oluwagbemi alleviated worries by assuring Nigerians that the costs would be kept at a minimum, with a strong focus on affordability. His statement emphasized the government’s dedication to guaranteeing widespread access to the advantages of the CNG revolution. Oluwagbemi added that it would also promote economic inclusivity and encourage a faster and more thorough shift towards a transportation system powered by CNG.