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The Democrat News > Blog > Uncategorized > 30,000 Vehicles Now Use CNG in Nigeria as PCNGi Secures $491M Investment
Uncategorized

30,000 Vehicles Now Use CNG in Nigeria as PCNGi Secures $491M Investment

Esther Udoh
Last updated: April 8, 2025 2:28 pm
Esther Udoh
Published April 8, 2025
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Over 30,000 vehicles in Nigeria have been converted to run on CNG under the Federal Government’s clean energy push. The PCNGI project has created over 9,000 direct and 75,000 indirect jobs, while attracting $491 million in private investment. Project Director Michael Oluwagbemi highlighted its impact on reducing living costs, boosting industry, and protecting the environment.

The $491 million investment in Nigeria’s CNG initiative is credited to strong stakeholder confidence and government incentives. Launched by President Tinubu in October 2023, the program promotes CNG and EV adoption. Over 200 conversion centers have been set up, with a goal of 1 million free or subsidized vehicle conversions, focusing on public transport, ride-share operators, and MDAs.

The CIP is on track to complete over 10,000 conversions by the end of the quarter, with 22,000 conversion kits distributed and 3,000 technicians trained. Plans include a partnership with CreditCorp to offer discounted conversions to public servants. The program has delivered 421 CNG buses and 36 EV buses as part of the Renewed Hope Mass Transit Scheme, now operational. To address CNG fuel supply challenges, the Refueling On-Lending Programme will establish 25 refueling stations across 15 states.

The first CNG refueling station is operational in Kwara, with more stations in Kogi, Ekiti, Rivers, and Abuja by May 1. By June 2025, 17 states will have CNG refueling, expanding to 30 by year-end. NNPC has 12 stations, with 8 more planned. NIPCO operates 22 stations, with 8 under construction. Private sector players like Bovas, AY Shafa, and Mikano are expanding infrastructure, with Mikano’s Ogun station supporting heavy-duty trucks.The PCNGI is launching a Diesel Conversion Program to cut logistics costs by 80%, helping reduce food inflation.

In partnership with the Ministry of Education and MDGIF, it will introduce subsidized CNG services and training in 20 universities, with operations starting by Q2 2025. A new Gas Vehicle Monitoring System (NGVMS) will ensure only certified vehicles refuel at stations, addressing safety concerns.Oluwagbemi assured the public that the Benin explosion was caused by illegal CNG cylinder fabrication, and those responsible have been caught.

The PCNGI, in partnership with NNPC and others, has completed a Mobility CNG Framework to supply 100 million cubic feet of gas daily at preferential rates, launching in 2-4 weeks. He thanked President Tinubu and the Ministries of Finance and Petroleum for their support, highlighting the program’s role in job creation, cost reduction, and climate change mitigation.

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