The Nigerian government, under the leadership of President Bola Ahmed Tinubu, has set a target to convert one million vehicles to Compressed Natural Gas (CNG) by the year 2027.
Babajide Awolowo, the Strategic Business Education Adviser for the Presidential Initiative on CNG, disclosed this goal during a stakeholders’ forum held in collaboration with the Kogi State Government and Automotive Gas Nigeria Services Limited (AUTOGAS Nigeria). The forum, themed “Ensuring Sustainable Energy: The Future of CNG in Kogi State,” highlighted the government’s plans and the benefits of CNG.
Awolowo noted that between December 2023 and May 2024, the Tinubu administration allocated $50 million directly to the CNG sector. He explained that the Presidential Initiative on CNG (Pi-CNG) has set an ambitious target of converting one million vehicles by 2027. He emphasized the importance of using Nigeria’s natural gas resources to power vehicles, which is both cost-effective and environmentally friendly.
President Tinubu made a significant announcement on May 29, 2023, declaring the end of the fuel subsidy that had been in place since 1977. This subsidy had led to budget deficits, corruption, and inefficiencies in the economy. Although the removal of the subsidy caused an immediate increase in fuel prices, it opened the door for alternative, cheaper, and cleaner fuel options like CNG.
On April 26, 2023, the US Energy Information Administration reported that Nigeria has 206.5 trillion cubic feet of proven gas reserves, making it the 9th largest in the world. Awolowo pointed out that this substantial gas resource, often wasted through flaring, can be harnessed to provide a suitable and sustainable fuel alternative for Nigerians.
The Federal Government is partnering with a company to establish a CNG Park in Ajaokuta Local Government Area of Kogi State. This park will produce CNG accessories for vehicles, such as conversion kits and cylinders, thereby creating jobs and retaining financial value within the country.
Recognizing that not everyone can afford the full cost of vehicle conversion, the government plans to pre-qualify commercial drivers for financial assistance. Those who qualify will have 50% of their conversion costs covered by the government.
Governor Ahmed Usman Ododo, represented by Dr. Folashade Arike Ayoade, reiterated his administration’s commitment to making Kogi State the central hub for CNG infrastructure in Nigeria. He emphasized that CNG adoption offers significant benefits, including reduced greenhouse gas emissions, improved air quality, and enhanced energy efficiency. Governor Ododo noted that the event demonstrated a shared commitment to sustainable energy solutions and development in Kogi State and across Nigeria.
