The Presidency announced on Monday that the Automobile Compressed Natural Gas (AutoCNG) initiative has secured over $491 million in investments over the past year.
The announcement was made by Michael Oluwagbemi, Programme Director and CEO of the Presidential CNG Initiative (PCNGI), during a “Meet the Press” briefing at the Presidential Villa in Abuja.
Oluwagbemi revealed that the initiative has generated significant employment opportunities, with more than 9,000 direct jobs and 75,000 indirect jobs created across the country.
He further highlighted the impact of the programme on Nigeria’s vehicle conversion industry.
“Nigeria’s capacity to convert vehicles from petrol and diesel to bifuel vehicles has increased by almost 3,000 percent,” Oluwagbemi said, noting the establishment of over 200 new conversion centres by private sector players, up from just seven when the programme was launched.
This expansion has also led to the direct employment of over 3,000 technicians through the launch of the Conversion Incentive Programme (CIP).
The programme aims to reduce the country’s reliance on fossil fuels by converting vehicles to run on compressed natural gas (CNG). Oluwagbemi also addressed safety concerns raised by some negative incidents, particularly a recent occurrence in Benin, Edo State.
He attributed the incident to sabotage by economic saboteurs who were engaged in illegal fabrication of CNG cylinders.
In response to these concerns, Oluwagbemi announced a new safety initiative.
“We have partnered with the Federal Ministry of Petroleum (Gas) to develop an end-to-end monitoring system for gas vehicles,” he said.
The Nigeria Gas Vehicle Monitoring System (NGVMS) will be implemented by the four main regulatory bodies in the sector: the Standards Organisation of Nigeria (SON), the National Automotive Design and Development Council (NADDC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Federal Road Safety Corps (FRSC).
The system aims to ensure that only properly converted and inspected vehicles are refuelled at gas stations.
Oluwagbemi also reassured the public that the safety issue in Benin was an isolated incident, which had been swiftly addressed by the police, resulting in arrests.
“With NGVMS in place, we will prevent such incidents from happening again,” he added.
The PCNGI has also made notable strides in its efforts to stimulate both public and private sector investment.
Through a public awareness campaign conducted between May and November 2024, the initiative successfully attracted over $491 million in investments, significantly boosting Nigeria’s CNG industry.
The Conversion Incentive Programme, launched in August 2024, aims to convert one million vehicles, particularly public commercial transport vehicles, to CNG. As part of the programme, the Ministry of Finance procured approximately 22,000 conversion kits, with the first batch being delivered in October 2024. Oluwagbemi announced that the programme is on track to complete 10,000 conversions by the end of the first quarter of 2025.
To further expand the programme, the PCNGI has introduced a financing scheme for public servants, in partnership with the Credit Corp initiative, to offer deep discounts and finance the balance of conversion costs.
In addition to vehicle conversions, the Federal Government has also procured 655 buses as part of the initiative. This includes 421 CNG buses and 36 electric vehicles (EVs), with 405 buses already deployed across various transport schemes. The Renewed Hope Mass Transit scheme, which offers free or discounted rides during peak periods, is now operating commercially and is set to expand to include tricycles.
Oluwagbemi expressed confidence that the initiative would continue to drive economic growth and job creation, stressing the government’s commitment to ensuring the safety and success of the AutoCNG programme.
“We will not relent in our efforts to ensure the safety of lives and investments in the sector,” he concluded.
