From Adanna Nnamani, Abuja
The Presidential Compressed Natural Gas Initiative (PCNGI) has dismissed recent media reports suggesting a lag in infrastructure development within the compressed natural gas (CNG) sector, describing the claims as alarmist and unreflective of the sector’s rapid growth under President Bola Tinubu’s administration.
In a statement issued on Monday, June 2, the Programme Director and Chief Executive of PCNGI, Engr Michael Oluwagbemi, noted that the initiative, which officially commenced operations in May 2024, has attracted about $500 million in investments within its first year.
Oluwagbemi insisted that the president’s vision for an alternative energy future is being successfully executed, despite initial scepticism from both the public and sections of the media. He disclosed that the number of CNG vehicles in Nigeria has surged from about 4,000 in 2023 to over 50,000 currently, with projections to double soon, driven by strategic awareness campaigns, favorable policy incentives, and increased public understanding of CNG’s economic benefits.
He highlighted that over 175 CNG stations are being rolled out nationwide through partnerships with private and public investors. Recent developments include the commissioning of two new daughter stations in Abuja by AY Shafa and Femadec, with plans for 9 and 21 additional stations, respectively, within a year.
“In addition to Greenville and Femadec, the PCNGI is backing partners to roll out 24 sites in the next 6-9 months, with one site already activated in Ilorin. Port Harcourt, Ado Ekiti, Lokoja, Abuja, Aba, and Enugu will all go live within the next 60 to 120 days to dispense CNG, to scale the refuelling on-lending initiative heralded with the first launch in Ilorin last year that has already transformed that local economy,” he stated.
Oluwagbemi added, “Aside from these, NNPCL is investing. An additional 8 stations to its current stock of 12 are being finished, and another 40 of 100 in Phase 2 of its rollout plan are being finalised. Bovas is launching two sites in Ibadan any moment from now from its eight-station rollout of ultra-modern CNG stations and ecosystem. NIPCO’s 8 stations, in addition to 23 already live across the country, will be completed within 6 months.”
He noted that the Midstream and Downstream Gas Infrastructure Fund (MDGIF) recently awarded equity investments to ten new entries, three of which focus on CNG stations, in addition to four of the six initial N123 billion investments last year 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. 255 new conversion centres that didn’t exist last year and 53 daughter stations exist today as a result of some of those investments,” he said.
While acknowledging that infrastructure development takes time, Oluwagbemi urged patience from the public and called for constructive media reporting. “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 the addiction,” he stated.
Oluwagbemi reaffirmed PCNGI’s commitment to delivering on Tinubu’s energy transition promise, assuring Nigerians that efforts are ongoing across the value chain to ensure access to affordable, clean transportation.