FG to intensify CNG drive to reduce transport costs

•Targets rollout of one million gas-powered vehicles nationwide

The Federal Government has pledged to intensify efforts to promote Compressed Natural Gas (CNG) as a cheaper transportation alternative, targeting the rollout of one million CNG-powered vehicles across the country.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, gave the directive to the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV) and the Decade of Gas (DoGas) Secretariat, urging them to accelerate investments, expand infrastructure and strengthen programmes to boost nationwide adoption.

According to the statement by the spokesperson to the minister, Louis Ibah, on Sunday, Ekpo spoke in Abuja over the weekend while receiving progress updates from the two bodies, stressing the need to translate the Federal Government’s Auto CNG policy into tangible benefits for Nigerians through reduced transportation costs.

He said the initiative had become more urgent following the removal of petrol subsidy and the need to provide Nigerians with a more affordable and environmentally friendly transportation alternative, in line with the aspirations of President Bola Tinubu.

The minister noted that Nigeria’s abundant natural gas resources offered significant opportunities to reduce transportation costs, deepen domestic gas utilisation and stimulate economic growth.

He, however, emphasised the need for sustained investments in refuelling infrastructure, vehicle conversions and other critical components required to accelerate the adoption of CNG.

Ekpo commended the leadership of Pi-CNG & EV for the progress recorded under its current management, assuring the initiative of the Federal Government’s continued support towards achieving its objectives.

He also highlighted the importance of increasing domestic gas consumption, noting that gas supply had risen above two billion cubic feet per day for the first time in Nigeria’s history.

According to him, the country’s vast gas reserves provide a strong foundation for expanding the use of natural gas across key sectors of the economy, particularly transportation.

“Nigeria is a gas nation with a gas reserves index of over 80 years, and that is why we are talking about the Decade(s) of Gas.

“It is important that we listen to the directive of Mr President to make transportation cheaper via CNG. We will continue to give you all the backing, to provide the necessary assistance to make sure we drive this project to a logical conclusion,” he said.

In his remarks, the Executive Chairman and Chief Executive Officer of Pi-CNG & EV, Ismaeel Ahmed, said the initiative would intensify investments and programmes aimed at expanding CNG infrastructure and increasing vehicle conversions nationwide.

He said the efforts were expected to accelerate the adoption of CNG-powered vehicles and help reduce transportation costs for millions of Nigerians.

Ahmed explained that a joint industry market study completed by the Decade of Gas Secretariat had provided a framework for accelerating the rollout of CNG, tracking progress, identifying implementation gaps and strengthening efforts to expand adoption.

He said the initiative would leverage the study to improve coordination among stakeholders and address challenges affecting the deployment of CNG infrastructure and conversion facilities.

Similarly, the Coordinator of the Decade of Gas Secretariat, Ed Ubong, described CNG as a key component of Nigeria’s energy transition, noting its potential to support domestic energy utilisation and economic development.

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Ubong assured the presidential initiative of the secretariat’s continued support, adding that efforts to expand domestic and export gas utilisation would create benefits for Nigerians and investors.

The Federal Government has been promoting CNG as an alternative to petrol-powered transportation following the removal of petrol subsidy, which increased pressure on transport operators and commuters.

The planned rollout of one million CNG-powered vehicles is expected to support the government’s broader drive to harness Nigeria’s natural gas resources, reduce reliance on petrol and make transportation more affordable.