The federal government has successfully mobilised at least $1 billion in private capital to boost the entire value chain of the CNG segment. In a move to expand the use of compressed natural gas (CNG) nationwide, it also launched the Nigerian Gas Vehicle Monitoring System (NGVMS), aimed at ensuring safety, accountability, and environmental integrity in the CNG industry.
During a pilot event at an NNPC retail station in Abuja, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, explained that only vehicles converted at accredited facilities using certified kits will be allowed to refuel at approved CNG stations. This system is designed to track the entire process, from conversion to refuelling, and guarantee both safety for consumers and credibility for the emerging CNG ecosystem in Nigeria.
Ekpo affirmed that the initiative marks a landmark under President Bola Tinubu’s Renewed Hope Agenda and the Decade of Gas Initiative, positioning CNG as a cleaner, more affordable energy alternative. Ismaeel Ahmed, Chairman/CEO of the Presidential Initiative on CNG (PiCNG), reiterated that “over $1 billion in private sector investments have flowed into Nigeria’s CNG value chain,” noting that new conversion and refuelling facilities are expected to be rolled out nationwide by year’s end.
Transport union leaders, present at the launch, expressed gratitude to the president for introducing PiCNG, especially in light of the 2023 fuel subsidy removal. They say that over 1 million free CNG kits, buses, and tricycles (keke) have been distributed, slashing transport costs and helping to ease food price pressures. They urged the government to prioritise commercial vehicles for CNG conversion and to expand the number of CNG stations across states, acknowledging that access remains limited in many regions.
Meanwhile, in related energy news, the Dangote refinery has reportedly reduced its crude oil purchases significantly due to operational challenges, a factor contributing to current pressure on gasoline supply and prices.
