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The number of Compressed Natural Gas (CNG) conversion centers skyrocketed from just seven in 2023 to an impressive 158 in 2024, marking a staggering growth of over 2,000 percent. This surge reflects a rapid shift toward alternative energy solutions as demand for cleaner, cost-effective fuel options gains momentum nationwide.
Engr. Michael Oluwagbemi, the Programme Director and Chief Executive of the Presidential Committee on Compressed Natural Gas Initiative (Pi-CNG), revealed this during a panel discussion titled From Policy to Practice: Strengthening Domestication for Economic Development. The event was part of the 13th Practical Nigerian Content Forum, held in Bayelsa State, showcasing Nigeria’s commitment to advancing local content in the energy sector.
He further revealed that Pi-CNG has set ambitious plans in motion to establish an additional 1,000 conversion centers nationwide, aiming to address the growing demands of stakeholders in the compressed natural gas sector.
He said: “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.
“The conversion cost, including kits and services, is approximately ₦1 million per vehicle. With a target of converting five million vehicles, this represents a ₦5 trillion market opportunity.”
He also said: “We are planning to establish a CNG manufacturing hub in Ajaokuta, Kogi State, where 10 hectares of land have already been secured. Five key components of the kits, such as flexible pipes, filters, and valves, can be manufactured locally.
“Even the Electronic Control Unit (ECU) can be developed through reverse engineering. We are already in discussions to make this a reality.”
Read also: Tinubu To Nigerians: Pay ₦1,000 For Petrol, ₦200 For CNG
Oluwagbemi called on 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).
He said plans for assembly plants dedicated to producing fully CNG-powered vehicles and outlined Pi-CNG’s commitment to converting 500,000 commercial vehicles.
The initiative is also prioritizing capacity building, with a target of establishing 1,000 training institutes nationwide.
“We are working with the Nigerian Institute of Transport Technology (NITT) to certify trainees and ensure that local mechanics have the skills to handle CNG conversions and maintenance.
“We aim to create opportunities for mechanics and entrepreneurs to own CNG maintenance or conversion stations.
“We are witnessing queues at CNG refueling stations in some states, indicating a growing demand. Independent filling station owners are now considering retrofitting their facilities or adding CNG refueling units to meet this demand.
“The cost of setting up a CNG refueling station, initially about $600,000, is being mitigated by the introduction of composite refueling units.
“These portable units, modeled after technologies used in India, are being deployed in Nigeria and offer faster refueling capabilities.”
