FG Targets $4.4 Billion Savings with CNG Initiative

 

CNG Points

The Federal Government of Nigeria is advancing its efforts to boost domestic gas supply, aiming to save approximately $4.4 billion annually by reducing petrol imports. The Presidential Initiative on Compressed Natural Gas (PCNGi) plans to convert around one million vehicles to Compressed Natural Gas (CNG), significantly cutting down on petrol consumption.

 

During a presentation at the Co-Creation Session on Nigeria Gas Vehicle Monitoring System (NGVMS) in Abuja, PCNGi Coordinator for Regulations, Compliance, and Facilitation, Engr. Zayyan Tambari, highlighted that the initiative is expected to replace 20 percent of the current daily consumption of 50 million liters of petrol with CNG. Achieving this goal will require an estimated $890 million investment in infrastructure development for alternative fuel.

 

Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, reaffirmed the government's commitment to maximizing Nigeria's gas resources. Represented by Engr. Abel Nsa, Mr. Ekpo emphasized the importance of safety in the transition to CNG, stressing the need for specific tools and materials throughout the value chain.

 

“We are at the point where we need to begin to talk about the safety issues in the use of CNG. We have got to educate ourselves and we have got to use specific tools and materials hitherto that we have not been using,” Ekpo stated, drawing parallels to the economic impact of mobile phone adoption during President Obasanjo's regime.

 

Engr. Ogbugo Ukoha, Executive Director of Distribution System, Storage, and Retailing Infrastructure at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), noted that the agency has introduced regulations to guide the development of gas retailing infrastructure and fuel quality standards. Ukoha added that petrol station owners are being encouraged to incorporate CNG dispensing points into their facilities, with new licenses contingent on the inclusion of such points.

 

“The Authority is also engaging stakeholders to mandate the conversion of fuel trucks, fleet owners, and facilities to use CNG, given the high cost of diesel,” Ukoha said.