The Federal Government has unveiled plans to slash the country’s annual petrol import cost by up to $4.4 billion through the adoption of Compressed Natural Gas (CNG) as an alternative fuel.
Engr. Zayyan Tambari, the coordinator of Regulations, Compliance, and Facilitation at the Presidential Initiative on Compressed Natural Gas (PCNGi), revealed this during a Co-creation Session on the Nigeria Gas Vehicle Monitoring System (NGVMS) held in Abuja.
He said the government aims to convert approximately one million vehicles to CNG, which requires an estimated investment of $890 million to establish the infrastructure for the alternative fuel.
”The plan involves substituting 20% of the current 50 million litres of petrol consumed daily in Nigeria with CNG,” he noted.
On his part, Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo reiterated the government’s commitment to fully utilizing the nation’s gas resources.
”Specific measures and materials will be implemented across the value chain to ensure the safe use of CNG as a vehicle fuel,” he stated.
Also speaking, Engr. Abel Nsa emphasized the importance of addressing safety issues associated with CNG usage.
He compared the potential impact of CNG adoption to the emergence of cell phones in the early 2000s, highlighting the need for education, specific tools, and materials for safe utilization.
Michael Oluwagbemi, CEO of P-CNGi, stressed the importance of a smooth transition to natural gas.
He highlighted the regulatory steps put in place by the federal government to address safety concerns and ensure compliance with technical regulations across the gas vehicle ecosystem.
Similarly, Engr. Ogbugo Ukoha of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) outlined regulatory efforts to promote gas usage.
”This includes gazetting regulations for gas retailing infrastructure development and fuel quality standards.
”Petrol station owners are encouraged to set up CNG points, and new licenses will require CNG dispensing facilities,” he stated.
He added: ”The government’s push towards CNG adoption reflects a strategic move to reduce petrol import costs, enhance energy security, and promote cleaner and more sustainable energy practices.
”With robust regulatory frameworks and stakeholder engagement, Nigeria aims to transition smoothly to CNG, ensuring safety, affordability, and environmental consciousness in its energy landscape.”
Recall that the Federal Government recently inaugurated a 5.2 million standard cubic feet per day (MMscf/d) CNG plant in Lagos.
The plant, located in the Isolo Industrial Area of Ilasamaja, was established through a partnership between NNPC Gas Marketing Limited and Transit Gas Nigeria Limited, owned by Axxela.
Ekpo commissioned the plant under the theme ‘From Gas to Prosperity: CNG for All.’
