FG Recommits to Cheaper, Cleaner Transportation Amid $2bn CNG Investment

***• Says 120,000 vehicles converted, 7,700 technicians trained ***

•Ekpo: Vehicle owners, fleet managers reporting significant fuel cost savings

Emmanuel Addeh in Abuja

The Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, yesterday reaffirmed the federal government’s commitment to expanding the use of Compressed Natural Gas (CNG) as a cheaper, cleaner and more sustainable alternative to conventional transport fuels, with the aim of reducing transportation costs for Nigerians.

Since the launch of the Presidential Initiative on Compressed Natural Gas (Pi-CNG) in 2023, a statement from the minister’s office said the federal government, working with relevant stakeholders, has facilitated significant private-sector investment in the CNG value chain, with more than $2 billion secured for CNG infrastructure and value-chain development.

According to the release signed by the minister’s spokesman, Louis Ibah, the investment has supported the rapid expansion of refuelling infrastructure, vehicle conversion centres, technical capacity and the wider ecosystem required for nationwide adoption.

Besides, it stated that more than 120,000 vehicles have been converted to CNG through a network of over 400 certified conversion centres and more than 90 refuelling stations.

In the same vein, the programme, Ekpo stressed, has also trained over 7,700 automotive technicians, created more than 10,000 direct and indirect jobs, as well as procured and deployed 655 CNG buses and 5,123 CNG tricycles.

These assets, he emphasised, complement the thousands of privately converted vehicles now operating across Nigeria’s public and commercial transport networks.

According to the minister, the developments show that CNG is no longer merely a future alternative, but an increasingly viable fuel already in use across the country and an important part of the federal government’s response to the transportation and cost-of-living pressures that followed the removal of the petrol subsidy.

The minister stated that the growing number of Nigerians adopting CNG provides strong validation of the programme, as commercial transport operators, private vehicle owners and fleet managers are reporting significant fuel cost savings and improved profitability, while commuters using CNG-powered buses are benefiting from lower fares.

He noted that the federal government’s investment in CNG infrastructure and vehicle conversion is already delivering practical benefits.

As more vehicles and fleets migrate to CNG, lower operating costs, Ekpo explained, are increasingly benefiting commuters, businesses, farmers, traders and other productive sectors.

He stressed that the objective is not simply to increase the number of CNG vehicles and refuelling stations, but to translate fuel savings into lower transportation and logistics costs, ease the cost of living and improve economic productivity.

“To sustain this momentum, the ministry is working with Pi-CNG, the Midstream and Downstream Gas Infrastructure Fund (MDGIF), state governments, transport unions, operators, investors and other stakeholders to expand refuelling and conversion infrastructure, develop dedicated CNG corridors and extend access to underserved communities,” he pointed out.

The minister commended President Bola Tinubu’s recent directive for an additional 500 CNG refuelling stations, bringing the planned national network to 1,000 stations, noting that the initiative will further expand access to CNG and accelerate its adoption across the country.

He also lauded state governors who have embraced the programme through investments and partnerships, while urging those yet to do so to key into the initiative in the interest of Nigerians and the commuting public.

The minister assured that the federal government would continue to work with investors and industry stakeholders to accelerate infrastructure deployment, deepen domestic gas utilisation and ensure that the benefits of the CNG programme reach Nigerians at the grassroots.