In a significant move to promote compressed natural gas (CNG) as a cleaner and more affordable fuel alternative, Nigeria has witnessed an exponential increase in the number of CNG conversion centres, rising from just seven in 2023 to 158 in 2024—a remarkable growth of over 2,000 percent.
This rapid expansion is part of the country’s broader strategy to domesticate the CNG sector, reduce fuel imports, and enhance economic development.
Engr. Michael Oluwagbemi, Programme Director and Chief Executive of the Presidential Committee on Compressed Natural Gas Initiative (Pi-CNG), revealed the development during a panel discussion titled From Policy to Practice: Strengthening Domestication for Economic Development at the 13th Practical Nigerian Content Forum held in Bayelsa State.
He emphasized that the Pi-CNG initiative aims to establish an additional 1,000 conversion centres to meet the growing demand from stakeholders and to facilitate the conversion of petrol-powered vehicles to CNG.
“The goal of increasing the number of conversion centres is to facilitate converting petrol cars to compressed natural gas (CNG) vehicles, creating a robust market for CNG stations,” said Oluwagbemi.
The conversion process, which involves retrofitting petrol cars with CNG kits and associated services, costs approximately ₦1 million per vehicle.
With a target of converting five million vehicles, this translates to an estimated ₦5 trillion market opportunity, underscoring the immense potential of the initiative.
A major component of the Pi-CNG’s vision includes the establishment of a CNG manufacturing hub in Ajaokuta, Kogi State, where ten hectares of land have already been secured.
Oluwagbemi revealed that five key components of the CNG conversion kits—such as flexible pipes, filters, and valves—could be produced locally, reducing dependence on imports and bolstering Nigeria’s industrial capacity.
Additionally, there are plans to reverse engineer the Electronic Control Unit (ECU) to further promote local manufacturing.
The Pi-CNG is in ongoing discussions with the Nigerian Content Development and Monitoring Board (NCDMB) to collaborate on the development of the Ajaokuta CNG hub under the Nigeria Oil and Gas Park Scheme (NOGaPS).
Oluwagbemi sees this as a critical step in achieving self-sufficiency in the CNG sector, creating jobs, and stimulating economic growth.
Pi-CNG is also committed to increasing the number of commercial vehicles converted to CNG, setting a target of 500,000.
The programme is also placing a strong emphasis on capacity building, with plans to establish 1,000 training institutes nationwide to equip Nigerians with the skills required for the expanding CNG sector.
Oluwagbemi’s ambitious plans reflect Nigeria’s growing commitment to sustainability and energy diversification. By embracing CNG, a cleaner and more affordable fuel, Nigeria aims to reduce its carbon footprint, cut down on fuel imports, and create thousands of jobs in the process.
With the CNG sector poised for massive growth, the initiative stands to transform the country’s energy landscape and contribute significantly to its economic development.
