FG: Despite Criticism, CNG Initiative Has Attracted $500m, Created over 10,000 Jobs

•Says 255 new conversion centres, 53 stations floated nationwide

Emmanuel Addeh in Abuja

Despite initial takeoff challenges, the coordinating office of the Presidential Compressed Natural Gas Initiative (PCNGI) has said it attracted $500 million in investment and created 10,000 jobs nationwide in less than one year.

Besides, the secretariat noted that at least 255 new conversion centres had been established, while 53 daughter stations for refilling had been inaugurated.

In a statement in Abuja yesterday, Programme Director and Chief Executive of the PCNGI, Michael Oluwagbemi, noted that in spite of the criticisms that have trailed the initiative,  close to 100,000 vehicles have been converted, from a mere 4,000 hitherto.

One major issue with the programme has been the reported inadequate infrastructure, as there are too few Compressed Natural Gas (CNG) refueling stations and conversion centres across the country compared to the demand by motorists, particularly outside major urban areas.

Describing a key newspaper report on the alleged gaps in the programme as ‘alarmist’, being barely seven months old in operation nationwide, Oluwagbemi stated that before the current push, there was hardly any CNG vehicles on the roads, and no demand at the few 11 CNG stations nationwide since a 2017 pilot by the Nigerian National Petroleum Company Limited (NNPC).

“One year out, we are pleased that even the doubting Thomases are singing a new tune. With over 50,000 vehicle count and rising to 100,000, the queues at CNG stations are naturally going to rise, because of such unprecedented increase (from mere 4000) in vehicle count.

“This is as a result of massive incentives provided by the administration and the breakthrough in awareness due to the economic benefits of the switch. Nigerians love CNG and the programme is working.

“Indeed, the private sector as well as public partners that will develop the necessary infrastructure to meet the rising demand of CNG vehicles are taking note. Just last week, two new daughter stations in Abuja were commissioned with AY Shafa and Femadec investing in these ventures,” Oluwagbemi added.

According to him, over 175 stations are being rolled out nationwide by various partners, explaining that just last week, the Midstream Downstream Gas Infrastructure Fund (MDGIF) awarded 10 new entries equity investments to develop their various gas projects.

“Three of them were focused on developing CNG stations. This was in addition to four of the six initial N123 billion investments made last year by MDGIF being directed at the sub-sector. In one year, the CNG sector has attracted over $500 million in investments and created over 10,000 direct jobs. 255 new conversion centres that didn’t exist last year and 53 daughter stations exist today as a result of some of those investments.

“Nigeria is making progress with respect to CNG infrastructure but engineering feats take time. It took over 70 years to get addicted to petrol and diesel, it will take more than seven months to be weaned off the addiction,” Oluwagbemi added.