The Presidential Compressed Natural Gas Initiative (PCNGi) aims to convert approximately one million vehicles to compressed natural gas (CNG), potentially saving Nigeria about $4.4 billion (N6.6 trillion) annually on petrol imports.
This was disclosed by the Coordinator for Regulations, Compliance, and Facilitation at PCNGi, Engr. Zayyan Tambari, during a presentation at a Co-Creation Session on the Nigeria Gas Vehicle Monitoring System (NGVMS) in Abuja.
Tambari stated that an investment of about $890 million would be needed to develop the infrastructure for this alternative fuel. The government anticipates that CNG will replace 20% of the country’s 50 million litres of petrol currently consumed daily.
Earlier, the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, represented by Engr. Abel Nsa, emphasized the government’s commitment to maximizing the benefits of Nigeria’s gas resources. He noted the importance of specific materials and tools for ensuring the safe use of CNG as a vehicle fuel.
Engr. Ogbugo Ukoha, Executive Director of Distribution System, Storage, and Retailing Infrastructure at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), stated that the agency has introduced two regulations to address the technical framework and specifications for developing gas retailing infrastructure and fuel quality standards. He added that petrol station owners are being encouraged to set up CNG points, and no new licenses will be granted without provisions for CNG dispensing.
Project Director and Chief Executive of PCNGi, Engr. Michael Oluwagbemi highlighted the advantages of transitioning to natural gas, citing its cost-effectiveness, environmental benefits, and sustainability. However, he also noted the need to address safety concerns associated with the transition, requiring strong regulatory oversight.
“To achieve this, we need the cooperation of all ecosystem members, from the point of inspection or conversion to the point of use, and from the manufacturing or importation of any part to the point of installation. There is a need for a robust regulatory regime,” Oluwagbemi stressed.
