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Home Finance Investments

Tinubu’s CNG Initiative Spurs Growth, Boosts Clean Energy Adoption, CNG Initiative generates $459m in a year

Paul by Paul
December 11, 2024
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Tinubu’s CNG Initiative Spurs Growth, Boosts Clean Energy Adoption, CNG Initiative generates $459m in a year
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The Programme Director of the Presidential Compressed Natural Gas Initiative (PCNGI), Michael Oluwagbemi, announced a significant expansion in CNG conversion infrastructure during a stakeholders’ sensitisation programme hosted by Portland Gas Limited at the Oil and Gas Free Zones Authority (OGFZA) in Onne, Rivers State.

Oluwagbemi revealed that the number of CNG conversion centres has surged from seven to 153 under PCNGI, an initiative driven by President Bola Ahmed Tinubu’s commitment to mitigating high fuel costs by promoting natural gas as a more affordable alternative.

The OGFZA also showcased the success of its Liberty Oil and Gas Free Zone, reporting over $1 billion in Foreign Direct Investment (FDI) within 17 months of Tinubu’s administration. Bamanga Jada, OGFZA’s Managing Director/CEO, praised the PCNGI as a transformative palliative measure aimed at providing cleaner and cheaper energy alternatives.

Collaboration and Strategic Implementation

Speaking at the event, the Minister of Industry, Trade, and Investment, Jumoke Oduwole, underscored the government’s commitment to fostering partnerships across public and private sectors to drive CNG adoption. Represented by Mrs. Theresa Ogolo, the minister highlighted the importance of robust sensitisation campaigns to educate transport operators, industrial players, and end-users on the economic and environmental benefits of CNG.

“The adoption of CNG aligns with the Federal Government’s broader energy transition strategy to diversify the energy mix, reduce carbon emissions, and harness Nigeria’s abundant natural gas reserves,” Oduwole said.

She added that Onne Oil and Gas Free Zone was strategically selected as a launchpad for CNG infrastructure development due to its role as an industrial and innovation hub.

Tackling Infrastructure Gaps

Portland Gas Limited’s Managing Director, Folajimi Mohammed, emphasized the importance of the initiative in accelerating CNG adoption. He noted that while CNG conversions have increased rapidly, refilling infrastructure still lags. However, private sector involvement is expected to address this challenge soon.

“The Onne zone is crucial for CNG conversion, given its concentration of industries,” Mohammed said. “The present administration’s aggressive push for CNG adoption is driving progress, and the refilling gap is already being tackled by stakeholders.”

This initiative marks a significant milestone in Nigeria’s transition to clean energy, leveraging natural gas as a sustainable and economically viable fuel source for transportation and industry.

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