Effizzie Magazine Abuja Correspondent
Gloria Uwais
The Presidency revealed on Monday that the Automobile Compressed Natural Gas (AutoCNG) initiative has attracted more than $491 million in investments over the past year.
Michael Oluwagbemi, Programme Director and CEO of the Presidential CNG Initiative, shared this update during a “Meet the Press” briefing at the Presidential Villa in Abuja.
Oluwagbemi highlighted that the initiative has created over 9,000 direct jobs and 75,000 indirect jobs. He also emphasized the significant growth in Nigeria’s vehicle conversion capacity, which has increased by nearly 3,000 percent. This was made possible by the establishment of more than 200 new conversion centers, up from just seven when the program began, all driven by the private sector. Additionally, over 3,000 new technicians have been employed as part of the launch of the Conversion Incentive Program.
Addressing concerns about safety, particularly in light of recent incidents involving CNG vehicles in Benin, Edo State, Oluwagbemi attributed these events to sabotage. He reassured the public that the initiative has partnered with the Federal Ministry of Petroleum (Gas) to enhance monitoring of CNG vehicles through a collaborative effort involving key regulatory bodies: SON, NADDC, NMDPRA, and FRSC. This collaboration has led to the creation of the Nigeria Gas Vehicle Monitoring System (NGVMS), designed to ensure that only properly converted vehicles, or those with certified tanks, are refueled at gas stations. The NGVMS is expected to be fully operational by the end of the year.
Oluwagbemi made it clear that the incident in Benin last year was caused by economic saboteurs involved in the illegal fabrication of CNG cylinders, and they were apprehended by the police. With the NGVMS in place, such incidents will be prevented, as only accredited vehicles will be allowed to refuel. He reiterated the commitment to ensuring safety within the sector and stressed the importance of adherence to safety regulations.
The PCNGI has made significant progress since the official rollout of the program, which followed careful planning and the establishment of industry standards and incentives approved by the President. The initiative has successfully attracted over $491 million in investments over the past year, creating thousands of jobs and significantly expanding the country’s conversion capacity. Nigeria’s ability to convert vehicles from petrol and diesel to bifuel has increased by almost 3,000 percent, with more than 200 new conversion centers established.
The Conversion Incentive Program (CIP), which was introduced by the President in August 2024 to address the nationwide cost of living protests, is aimed at converting one million vehicles, particularly public transport, rideshares, and government vehicles, to CNG. As of October 2024, approximately 22,000 conversion kits were procured, with plans to complete 10,000 conversions by the end of this quarter.
Additionally, the PCNGI has extended its efforts to provide deep discounts for public servants and finance conversion costs through collaboration with the Credit Corp initiative. This will soon be launched in partnership with public sector unions.
To showcase the benefits of CNG and electric vehicle (EV) platforms, the Federal Ministry of Finance procured a total of 655 buses, including 421 CNG buses and 36 EV buses. So far, 421 CNG buses and 36 EV buses have been delivered. These buses have been deployed either as part of agreements with the NLC and TUC or in partnership with the Ministry of Transportation and state transport companies. The Renewed Hope Mass Transit scheme, which began with free or discounted rides during the festive period, is now running commercially, with plans to extend the program to tricycles as soon as the gas infrastructure for last-mile delivery is in place.
