The Federal Government has emphasized the economic benefits of Compressed Natural Gas (CNG), noting that converting one million vehicles to CNG could save the country approximately $2.5 billion annually.
Michael Oluwagbemi, Programme Director of the Presidential Initiative on Compressed Natural Gas (Pi-CNG), highlighted this during a stakeholders’ engagement meeting in Port Harcourt, Rivers State.
Oluwagbemi outlined the government’s push for CNG as a solution to pollution, environmental degradation, and economic hardship. He emphasized Nigeria’s abundant natural gas resources, which remain underutilized, stressing that CNG is cleaner, cheaper, and capable of reducing transportation costs.
“The government’s initiative is crucial for national development and the well-being of our people. Despite being in the heart of the oil and gas region, Rivers State and Nigeria at large have wasted these resources for decades, exacerbating poverty,” Oluwagbemi stated. “The President’s focus on natural gas sets us on a path to growth, ensuring energy savings with government-controlled gas prices.”
He argued that transitioning three million vehicles to CNG in three years could significantly mitigate environmental degradation, emphasizing that CNG is a reliable and cost-effective fuel for the transportation sector. According to Oluwagbemi, this transition could also reduce inflation, as CNG offers 40-50% savings compared to petrol, and is 18 times safer than petrol and diesel.
“Using our natural gas will drive our transportation sector, reduce transportation costs for the common man, and close the financing gap for CNG vehicles. With enough demand for natural gas, our focus is now on establishing stations, pipelines, and conversion centers. Converting one million vehicles could save $2.5 billion a year and reduce fuel consumption by 6,000,000 liters daily. These savings can be redirected to improve hospitals and roads,” he added.
Fola Akinola, CEO of FEMADEC Energy Limited, announced plans to open two CNG refueling stations and vehicle conversion parks in Port Harcourt, offering vehicle owners the option to switch from petrol to CNG. He invited investors to participate in this initiative.
The Abia State Government has already redirected its N2 billion subsidy palliative towards CNG investment. Commissioner for Energy and Environment, Prof. Joel Ogbonna, informed the Pi-CNG committee that the state is prepared to implement the presidential directive. Abia State has allocated the Abia State Polytechnic for CNG training and developed an industrial park to produce gas. Additionally, the state plans to pass safety regulations to prevent hazards as it launches its CNG initiative.
“When Governor Alex Otti declared a state of emergency on the environment, he set aside N2 billion for CNG fuel subsidy. Abia State is ready to take off with CNG,” Ogbonna affirmed.
