The Presidential Compressed Natural Gas Initiative (PCNGi) has announced an investment of over $450 million in the compressed natural gas (CNG) value chain.
Michael Oluwagbemi, project director and CEO of PCNGi, disclosed this at the 9th Nigeria Energy Forum (NEF2024) held in Lagos. Represented by Tosin Coker, PCNGi’s head of commercial, Oluwagbemi stated that the funds were allocated to mother stations, daughter stations, refuelling stations, and vehicle conversion centres.
The initiative has successfully converted over 10,000 vehicles from petrol to CNG, and according to Oluwagbemi, “By 2027, the initiative will have converted more than one million vehicles using petrol to CNG.” Addressing safety concerns, he assured Nigerians that the initiative, in collaboration with various government agencies, had implemented precautionary measures to prevent CNG-related vehicle explosions.
Oluwagbemi also mentioned that in November, over $200 million had already been invested in the CNG value chain.
Ibironke Olubamise, national coordinator for the Global Environment Facility (GEF) Small Grants Programme (SGP), managed by UNDP, emphasized the programme’s focus on investing in youth energy innovation for economic growth and environmental sustainability.
Joseph Osanipin, director-general of the National Automotive Design and Development Council (NADDC), highlighted that the council had trained more than 4,000 auto technicians on converting petrol vehicles to CNG and had launched campaigns to raise awareness about CNG’s benefits. “CNG can guarantee cleaner environment, it is cheaper and affordable,” he said.
Similarly, Oluwatobi Ajayi, chairman and managing director of Nord Automobile Ltd, shared that the company had integrated CNG into its vehicle production process in response to the federal government’s policy on CNG adoption.
Adekunle Makinde, co-chair of NEF, announced that the 2024 Africa Energy Innovation Contest (AEIC) was supported by GEF-SGP UNDP as the principal sponsor, alongside Afrexim Bank and Oando Clean Energy Ltd. He revealed that the contest’s top three winners were awarded grants to deploy innovative energy solutions.
“The first prize of N2 million was awarded to solar-powered dehydrators for agro-processing,” Makinde stated. “The second prize of N1.5 million went to an irrigation loop by Thinpower, while the third prize of N1 million was awarded to solar-powered irrigation and cold storage for farms.”
