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The Presidential Compressed Natural Gas Initiative (PCNGI) has dismissed recent media reports suggesting a lag in infrastructure development within the compressed natural gas (CNG) .
PCNGI described the claims as alarmist and unreflective of the sector’s rapid growth under President Bola Tinubu’s administration.
In a statement issued on Monday, the Programme Director and Chief Executive of PCNGI, Engr. Michael Oluwagbemi, noted that the initiative, which officially commenced operations in May 2024, has witnessed exponential progress, attracting about $500 within its first year.
Oluwagbemi insisted that the president’s vision for an alternative energy future is being successfully executed, despite initial skepticism from both the public and sections of the media. He disclosed that the number of CNG vehicles in the country has surged from about 4,000 in 2023 to over 50,000 currently, with projections to double that number soon. He attributed this growth to strategic awareness campaigns, favorable policy incentives, and increased public understanding of the economic benefits of CNG.
The PCNGI chief highlighted that over 175 CNG stations are currently being rolled out across the country through partnerships with private and public investors.
He cited recent developments including the commissioning of two new daughter stations in Abuja by AY Shafa and Femadec, with both companies planning to deploy 9 and 21 more 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 refueling on-lending initiative heralded with the first launch in Ilorin last year that have already transformed that local economy.
“Aside from these, NNPCL is investing. Additional 8 stations to its current stock of 12 are being finished as we speak and another 40 of 100 in Phase 2 of her roll out plan is being finalized. Bovas is launching two sites in Ibadan any moment from now from its eight station roll out 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.
“Just last week, the Midstream Downstream Gas Infrastructure Fund, a veritable partner in the process awarded ten new entries equity investments to develop their various gas projects. Three of them were focused on developing CNG stations. This was in addition to 4 of the 6 of initial 123 billion naira investments made last year by MDGIF being 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 centers that didn’t exist last year and 53 daughter stations exist today as a result of some of those investments,” he stated.
While acknowledging that infrastructure development takes time, the PCNGI urged patience from the public and called on media platforms to focus on constructive 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,” the statement added.
Oluwagbemi reaffirmed PCNGI’s commitment to delivering on Tinubu’s energy transition promise and assured Nigerians that efforts are ongoing across the value chain to ensure access to affordable, clean transportation.
