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, the PCNGi’s Coordinator of Regulations, Compliance, and Facilitation, Engr. Zayyan Tambari, 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, saying the Government aims for CNG to replace 20% of the 50 million litres of petrol consumed daily in Nigeria.
Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, emphasised the Government’s commitment to maximising Nigeria’s gas resources. Represented by Engr. Abel Nsa, Ekpo underscored the need for specific materials and tools in order to ensure the safe use of CNG in vehicles throughout the value chain.
Executive Director of Distribution System, Storage, and Retailing Infrastructure at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Ogbugo Ukoha, discussed the agency’s efforts to promote gas usage, saying 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.
Project Director and Chief Executive of PCNGi, Engr. Michael Oluwagbemi, 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, stressing the need for a robust regulatory regime to ensure safety across the eco-system, 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.
