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CNG Is Thriving, Investments Are Expanding

Official Statement from the Presidential CNG Initiative (PCNGI)

The Presidential CNG Initiative (PCNGI) notes with concern the recent alarmist headlines questioning the viability of the CNG sector—an industry that is not only thriving but expanding at an unprecedented pace, despite being less than seven months into nationwide operations.

While we appreciate the media attention, these reports fail to capture the remarkable vision of President Bola Ahmed Tinubu and the swift, strategic implementation being driven by the PCNGI.

Since May 2024, the PCNGI has pursued a threefold mandate in line with Mr. President’s directive:

  1. Promote the adoption of Compressed Natural Gas (CNG) and Electric Vehicles (EVs) for a more sustainable transport system across Nigeria.

  2. Facilitate private and public sector investment into the alternative energy space.

  3. Coordinate regulatory frameworks to support rapid growth of the sector.

When we launched, there was skepticism—CNG vehicles were virtually non-existent, and demand at the mere 11 CNG stations nationwide (from a 2017 NNPCL pilot) was negligible. From May to October 2024, we focused on intensive public awareness campaigns to counter misinformation and educate Nigerians about the economic and environmental benefits of CNG.

One year later, the results speak for themselves. CNG vehicle adoption has surged from fewer than 4,000 to over 50,000, with projections hitting 100,000 in the coming months. Naturally, demand has increased—and so have queues at stations. This surge underscores the public’s growing confidence in the program and the tangible incentives introduced by the administration.

Infrastructure Is Growing to Meet Demand

Far from stalling, the infrastructure buildout is accelerating. Just last week, two new daughter stations were commissioned in Abuja, with AY Shafa and Femadec leading private sector efforts. AY Shafa is set to develop nine more stations, while Femadec has 21 in the pipeline—and is also pioneering CNG integration across 20 universities nationwide.

Other major developments include:

  • Greenville’s rollout of 51 LCNG stations across Northern and Southeastern Nigeria.

  • Over 175 new stations underway through multiple private partnerships.

  • PCNGI-supported rollout of 24 sites within 6–9 months; the first already launched in Ilorin.

  • New sites to go live soon in Port Harcourt, Ado-Ekiti, Lokoja, Abuja, Aba, and Enugu.

Key partners are investing heavily:

  • NNPCL is finalizing 8 new stations (adding to its 12) and preparing 40 more under Phase 2 of its plan.

  • Bovas is launching two stations in Ibadan as part of an 8-station rollout.

  • NIPCO’s 8 additional stations will expand on its existing network of 23 live outlets.

  • The Midstream and Downstream Gas Infrastructure Fund (MDGIF) recently awarded 10 new equity investments, with 3 focused on CNG stations.

In just one year, the CNG sub-sector has attracted over $500 million in investments and created more than 10,000 direct jobs. Today, 255 conversion centers and 53 daughter stations—nonexistent just a year ago—are in full operation.

Patience, Progress, and Perspective

We recognize the public’s desire for instant infrastructure, but large-scale engineering transitions take time. It took Nigeria over 70 years to become reliant on petrol and diesel; expecting a full transition in seven months is simply unrealistic.

We urge the public and the media to acknowledge this progress and avoid narratives that downplay real achievements. Platforms like Vanguard have a responsibility to spotlight stories of empowerment and economic enablement, not just skepticism and sensationalism.

The idea that vehicle owners would revert bi-fuel cars—designed to run on both CNG and petrol—back to petrol only is economically illogical. Even the occasional presence of CNG stations can reduce fuel costs by up to 90% per journey.

At PCNGI, we remain focused and undeterred. Our mission is clear: to deliver the benefits of clean, affordable transportation to all Nigerians, in line with the promises of Mr. President.

Rome wasn’t built in a day—and neither is a sustainable energy revolution.

Signed,
Engr. Michael O. Oluwagbemi, PE, PMP
Program Director/Chief Executive
Presidential CNG Initiative (PCNGI)

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