PCNGI Secures $491 Million Investment, Creates Over 84,000 Jobs in One Year

The Presidential Compressed Natural Gas Initiative (PCNGI) has successfully drawn in over $491 million in investments into Nigeria’s AutoCNG sector, resulting in the creation of more than 84,000 jobs in just one year.

Michael Oluwagbemi, the Programme Coordinator, shared these developments during a press briefing at the State House on Monday.

Oluwagbemi highlighted that the initiative has led to the generation of 9,000 direct jobs and 75,000 indirect jobs, furthering Nigeria’s transition towards cleaner, more affordable energy sources in the automotive industry, particularly after the petrol subsidy removal in 2023.

Significant Growth in Vehicle Conversion Capacity

Oluwagbemi pointed out that vehicle conversion capacity—the process of converting vehicles from petrol or diesel to a bi-fuel system (CNG/petrol)—has expanded dramatically from just 7 centers at the start to over 200 currently. The increase has been accelerated by the launch of the Conversion Incentive Programme (CIP) in August 2024, which has already seen 3,000 new technicians being recruited.

• The CIP aims to convert up to one million vehicles, particularly in public transport, ride-hailing services, and government fleets, either free of charge or at a subsidized rate.
• The initiative has procured 22,000 conversion kits, with deliveries beginning in October 2024 via the Federal Ministry of Finance.
• To further support the expansion, the PCNGI plans to establish 10,000 vehicle conversion centers by the end of Q2 2025, with the initiative already underway since December 2024.
• Additionally, the program has partnered with CreditCorp to offer financing options, including loans and discounts, to public servants for vehicle conversions.

CNG and EV Bus Deployment to Boost Transition

To demonstrate the effectiveness of CNG and electric vehicles (EVs), the Ministry of Finance has procured 655 buses—421 powered by CNG, 36 electric, and others—with 405 already deployed. Some of these buses have been allocated to labor unions as part of ongoing wage negotiations.

• With over 30,000 private-sector conversions, demand for CNG has surged, leading to supply challenges at some refueling stations.
• To alleviate this, the PCNGI launched the Refueling On-Lending Programme, providing refueling infrastructure across 25 sites in 15 states. The first site, in Kwara, went live, and others in Kogi, Ekiti, Rivers, and the FCT are expected to open before May 1, 2025. Additional sites are set to launch by June 12 in Kaduna, Abia, Enugu, Niger, Kano, and Benue.

Private Sector Investment Fuels Growth

Oluwagbemi emphasized that between May and November 2024, the PCNGI engaged in an aggressive campaign to attract private-sector investment, which resulted in several companies committing significant capital. Key developments include:

• NNPC Ltd.: 12 CNG refueling sites operational, with 8 more set for completion by the end of Q2 2025, and 100 more approved for rollout within the next 18 to 24 months.
• NIPCO: Equipment for 32 daughter stations imported, with 22 already operational and 8 under construction.
• Bovas: 8 stations under construction.
• AY Shafa: 1 station completed, with 9 more in development.
• Other Investors: Ibile Oil and Gas, MBH, and Mikano are also contributing to both mother and daughter stations.

Addressing Safety Concerns and Regulatory Measures

Oluwagbemi responded to safety concerns raised after a CNG-related incident in Benin, attributing it to illegal cylinder fabrication by economic saboteurs. He assured that arrests had been made in connection with the incident. To enhance regulation, the PCNGI plans to launch the Nigeria Gas Vehicles Monitoring System (NGVMS) by the end of 2025, which will ensure that only certified vehicles and tanks are allowed to refuel.