Investments in CNG expanding — PCNGI

The Presidential CNG Initiative (PCNGI) has stated that the Compressed Natural Gas (CNG) initiative is thriving and expanding across Nigeria, saying it is carrying out its mandate in line with the vision of President Bola Tinubu’s government to ensure sustainable transportation for all Nigerians, as well as facilitating investments into the alternative energy sector for transportation.

The Programme Director/Chief Executive, PCNGI, Engineer Michael Oluwagbemi, made the clarification in a statement he personally signed and made available to Tribune Online on Monday in Abuja.

Oluwagbemi, in the statement, decried a media report (not in Tribune) which raised an “infrastructural gap in a sector that is barely seven months old in operation nationwide”. He said the CNG sector has not only attracted $500 million in investments but has created over 10,000 direct jobs.

To show that Nigerians are gradually buying into the CNG alternative, Oluwagbemi said that in the last year since it was introduced, more than 50,000 vehicles have been converted as a result of its economic benefits, meaning that Nigerians have embraced it and the programme is working. He said as a result, the PCNGI has entered into agreements with the private sector as well as public partners to develop the necessary infrastructure to meet the rising demand for CNG vehicles, with over 175 stations being rolled out nationwide by various partners.

The PCNGI boss said the Midstream and Downstream Gas Infrastructure Fund (MDGIF), a government-established fund created under the Petroleum Industry Act (PIA) to promote and improve gas infrastructure, last week awarded 10 new equity investments to develop various gas projects in the country, with three out of the 10 focused on developing CNG stations.

The statement read in part: “The PCNGI notes the latest alarmist headline on the fate of the thriving CNG sector by the sceptical section of the media, decrying the so-called infrastructure gap in a sector that is barely seven months old in operation nationwide. We welcome the attention but note the headlines do not do justice to the incredible vision of President Bola Ahmed Tinubu and the speed of implementation of the same by the PCNGI.

“From May 2024, the PCNGI set out to implement its mandate in line with the directive and vision of Mr President, which were to incentivise the adoption of CNG and EV vehicles to ensure sustainable transportation for all Nigerians; facilitate investments into the alternative energy sector for transportation; and coordinate regulation of the emerging sector for rapid growth.

“Because the initial desire of the President was greeted with scepticism, the start-up work of the PCNGI was to embark on an intensive awareness campaign which was conducted from May to October 2024; hardly any CNG vehicles were on our roads, and there was no demand at the few eleven CNG stations nationwide since a 2017 pilot by NNPCL.

“Many, even our most ardent adherents, were not convinced anyone would want CNG vehicles. Misinformation and fake news on CNG dominated the media space. One year on, we are pleased that even the doubting Thomases are singing a new tune. With over 50,000 vehicles and rising to 100,000, the queues at CNG stations are naturally going to rise, because of such an unprecedented increase (from a mere 4,000) in vehicle count as a result of the massive incentives provided by the administration and the breakthrough in awareness due to the economic benefits of the switch. Nigerians love CNG and the programme is working.”

“Indeed, the private sector as well as public partners that will develop the necessary infrastructure to meet the rising demand for CNG vehicles are taking note. Just last week, two new daughter stations in Abuja were commissioned, with AY Shafa and Femadec investing in these ventures. Both entities have nine and twenty-one daughter stations respectively in the works over the next year. For Femadec, the dual benefit of leading the charge in building a CNG ecosystem in twenty universities is the icing on the cake.

“Just last week, the Midstream and Downstream Gas Infrastructure Fund, a veritable partner in the process, awarded ten new equity investments to develop various gas projects. Three of them were focused on developing CNG stations. This was in addition to four of the six initial ₦123 billion investments made last year by the MDGIF being directed at the sub-sector. In one year, the CNG sector has attracted over $500 million in investments and created over 10,000 direct jobs. Two hundred and fifty-five new conversion centres that didn’t exist last year, and fifty-three daughter stations, now exist today as a result of some of those investments.

“Nigeria is making progress with respect to CNG infrastructure, but engineering feats take time. It took over seventy years to get addicted to petrol and diesel; it will take more than seven months to be weaned off that addiction.

“We plead for patience from the sceptics and wish platforms like Vanguard Newspaper would focus on the positive stories of empowerment and enablement instead of driving negative narratives that stand in the way of progress. We doubt anyone would need to convert a bi-fuel vehicle—already running on both CNG and petrol—back to run solely on petrol, since even the mere occurrence of CNG stations along a journey can result in up to ninety per cent reduction in costs. Vanguard was being alarmist and deliberately blind to progress, and we understand their lonesomeness.

“At the Presidential CNG Initiative, we remain committed to our mandate while working hard across the value chain to deliver the benefits Mr President has promised to all Nigerians. Rome was not built in a day, and CNG will take more than a few days.”

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