…says queues to disappear soon, Attracts $980m investment
By Cyril Ogar
Federal government has Unveiled another Compressed Natural Gas (CNG) reverse-engineering, training, filling, Auto Conversion Centre on the Kubwa Expressway of the Federal Capital Territory (FCT) established by the National Agency for Science and Engineering Infrastructure (NASENI) in conjunction with Portland Gas Limited in Abuja.
The Executive Vive Chairman (EVC), National Agency for Science and Engineering Infrastructure (NASENI), Khalil Halilu assured Nigerians using Compressed Natural Gas (CNG), vehicles that in two year time there won’t be queues at refill stations anymore.
Halilu stated this at the unveiling of NASENI Portland Gas Limited facility for CNG refill, CNG convertion and a CNG training centre in Abuja on Wednesday
According to him average Nigerian driver spends over 40% of their daily earnings on fuel? That’s one of the highest fuel-cost burdens anywhere in the world. Now imagine if we could cut that by half, while reducing harmful emissions and extending the life of our engines.
Halilu, said the station was strategically located on the Kubwa expressway since it is central to the North and southern parts of the country.
When ask about the possiblity of having similar facilities for commuters who travile far journey to refil, he said, “We are launching a station on the highway of Kubwa, which you know connects Abuja to the whole of the north, and even the southern part of the country. It is a strategic move to show that the government is ready to position CNG stations in partnership with the private sector, like Portland Gas, in strategic areas to ease transportation for Nigeria.”
“We promised to expand this operation to make life easier for the country. Currently, CNG is about 85% cheaper than the average fuel, which is PMS.
He maintained that the facility, with its CNG Conversion Centre, Training Centre, and CNG Gas Refill Station, is part of our ongoing commitment to the Renewed Hope Agenda of the President. His vision for a diversified, sustainable, and industrially vibrant economy is clear. And today’s launch is another practical step toward making that vision a reality.
He said in partnership with the PCNGI, NASENI has planned for the queues around CNG stations to disappear in the next two years. According to him, the queues indicate that Nigerians have really keyed into the CNG initiative.
Also speaking at the event, the Chief Executive Officer of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, says Nigeria’s Compressed Natural Gas sector has attracted more than $980 million in private investments in just 18 months, with vehicle conversions surging from 4,000 to nearly 100,000,
Oluwagbemi described the CNG programme as the country’s “fastest-growing energy sector”, fueled by government incentives and private sector participation.
“I am pleased to report that just 18 months later, we have tracked over $980 million worth of investments in the CNG sector. This is easily the fastest-growing sector in the country today, and it continues to grow in leaps and bounds,” he said.
The CNG initiative, championed by President Bola Tinubu as part of measures to cushion the impact of fuel subsidy removal, is aimed at making transportation more affordable and eco-friendly. Oluwagbemi said the transition to CNG offered motorists up to 90 per cent savings on fuel costs.
“Many of us move around in big jeeps, but that’s just about 10 to 20 per cent of the population. The majority, low-income earners, women, schoolchildren, and the aged, rely on public transportation, and transportation costs money. CNG is cheaper, cleaner, and part of a global shift away from internal combustion engines,” he explained.
According to him, strategic partnerships and incentives have driven the rapid expansion of CNG capacity across the country.
From just five states with CNG dispensing and conversion facilities a year ago, the number has now risen to 20, with more than 315 conversion centres nationwide. He projected that before the end of 2025, at least 30 states and the Federal Capital Territory would have CNG infrastructure.
He cited major private sector investments, including a N720bn outlay by BUA and Nigerian Bottling Company on CNG trucks and 100 fuelling stations.
Oluwagbemi also urged the protection of CNG allocated for automobiles from being diverted to gas-fired power plants.
According to him, because of the incentive for transition to CNG use, using CNG allows about a 90 per cent discount.
He, however, sought the protection of the CNG allocated for automobile use from being diverted to fuel power plants.
The Portland Gas Ltd Chief Executive Officer, Folajimi Mohammed, described the launched station as a gas hub because it has a combination of everything about gas.
He said, “This is what we call the Portland Gas/NASENI gas hub. We call it a hub because, one, we have an auto-conversion centre. We have a training centre. We have a refill station as well here. So we have a combination of everything gas.”
He disclosed that the company has secured approval for the same station to sell liquefied petroleum gas.
He added, “So we have a four-tonne approval which you can see right behind us for cooking gas too. So, it is a full hub for gas.”
According to him, the cost of conversion has been subsidised by the PCNGI to the extent that it is free of charge for members of the Nigerian Association of Road Transport Owners and National Union of Road Transport Workers, and Bolt drivers.
Mohammed said in order to extend the CNG to the northern parts of the country, the Nigerian National Petroleum Company Limited is accelerating the work on the Ajaokuta-Kaduna-Kano gas pipeline to also spread it across the nation.
Meanwhile, the House of Representatives, however, said it would enact legislation to stop the diversion of auto CNG to other uses such as power plants.
Asked whether the lawmakers would do anything to stop the diversion, the Speaker, Hon. Tajudeen Abass, who was represented by Hon Alexander Mascut, said, the lawmakers will make laws to protect the CNG for autogas.
“This is new to transit from something we know to the new one is difficult. However, representatives of the House of Parliament will find a way to come up with legislation that will help to protect gas users,” he said.
Meanwhile, the Portland Gas Ltd, Chief Executive Officer, Mr. Folajimi Mohammed, described the launched station as a gas hub because it has a combination of everything about gas.
He said, “This is what we call the Portland Gas/NASENI gas hub. We call it a hub because we have an auto-conversion centre. We have a training centre. We have a refill station as well here. So we have a combination of everything gas.”
He disclosed that the company has secured approval for the same station to sell Liquefied Petroleum Gas.
He added, “So we have a four-tonne approval which you can see right behind us for cooking gas too. So, it is a full hub for gas.”
According to him, the cost of conversion has been subsidised by the PCNGI to the extent that it is free of charge for members of the Nigerian Association of Road Transport Owners and National Union of Road Transport Workers, Uba and Bolt.
Mohammed said in order to extend the CNG to the northern parts of the country, the Nigerian National Petroleum Company Limited is accelerating the work on the Ajaokuta Kaduna Kano (AKK) gas pipeline to also spread it across the nation.
The Nigerian Agency for Gas Engineering Infrastructure (NASENI), Mr. Khalil Halilu, said the station was strategically located on the Kubwa expressway since it is central to the North and southern parts of the country.
He said, “We are launching a station on the highway of Kubwa which you know connects Abuja to the whole of the north and even the Southern part of the country is a strategic move to show that the government is ready to position CNG stations in partnership with private sector like Portland Gas in strategic areas to ease transportation for Nigeria.”
He said in partnership with the PCNGI, NASENI has planned for the queues around CNG stations to disappear in the next two years.
