FG Targets N6.6 Trillion Petrol Import Savings Yearly From CNG Usage

• The Presidential Compressed Natural Gas Initiative aims to save $4.4 billion annually by converting one million vehicles to CNG
• An $890 million investment is needed for infrastructure, aiming to replace 20% of Nigeria’s daily petrol consumption with CNG

The Presidential Compressed Natural Gas Initiative (PCNGi) has projected substantial savings of about $4.4 billion (N6.6 trillion) annually in petrol importation through the conversion of approximately one million vehicles to Compressed Natural Gas (CNG).

During a presentation at the Co-Creation Session on Nigeria Gas Vehicle Monitoring System (NGVMS) held in Abuja, Engr. Zayyan Tambari, Coordinator of Regulations, Compliance, and Facilitation at PCNGi, highlighted the initiative’s potential impact. He noted that an investment of around $890 million would be necessary to establish the infrastructure for this alternative fuel. The government aims for CNG to replace 20% of the 50 million litres of petrol consumed daily in Nigeria.

The Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, emphasized the government’s commitment to maximizing Nigeria’s gas resources. Represented by Engr. Abel Nsa and Mr. Ekpo underscored the need for specific materials and tools to ensure the safe use of CNG in vehicles throughout the value chain.

Engr. Ogbugo Ukoha, Executive Director of Distribution System, Storage, and Retailing Infrastructure at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), discussed the agency’s efforts to promote gas usage. He mentioned that two new regulations have been established to provide a technical framework and standards for gas retail infrastructure and fuel quality. Ukoha also stated that petrol station owners are encouraged to set up CNG dispensing points, with new licenses contingent upon this requirement.

Engr. Michael Oluwagbemi, Project Director and Chief Executive of PCNGi, highlighted the benefits of transitioning to natural gas, which is cheaper, cleaner, safer, and more sustainable for the economy. However, he also acknowledged the safety concerns associated with this transition. Oluwagbemi stressed the need for a robust regulatory regime to ensure safety across the ecosystem, from inspection and conversion to the point of use and installation.

Overall, the initiative represents a significant step towards reducing Nigeria’s dependency on petrol imports and promoting a more sustainable and economical fuel alternative.