The Federal Government announced on Monday that it has reached an agreement with gas companies to supply an additional 20 million standard cubic feet of gas to meet rising demand for Compressed Natural Gas from vehicle owners.
As part of its broader strategy, the government plans to convert between 125,000 and 200,000 vehicles to run on CNG by the end of this year. The disclosure was made during the official launch of the Mobility CNG Supply Framework in Abuja.
The Programme Director and Chief Executive of the Presidential Compressed Natural Gas Initiative, Engr. Michael Oluwagbemi, stated that the initiative aims to deploy one million CNG-powered vehicles by 2027. He added that the government, in partnership with private sector players, is fast-tracking the establishment of CNG refueling stations nationwide to support the transition.
“We are looking to have at least 125,000 to 200,000 vehicles on the road in addition to the ones we already have running on CNG this year. We want to be on pace for one million by the end of 2027,” Oluwagbemi said.
“If we get closer to 250,000 or 300,000 total CNG vehicle count this year, at the end of this year, we’ll have done a lot of good work. Of course, this is an estimate.”
Oluwagbemi noted that the private sector likely converts two to three times more vehicles than the PCNGI and emphasized the government’s commitment to incentivizing private sector participation.
“The private sector has the biggest share of the work, but we are always there to create an enabling environment, providing incentives, continue to encourage them with the right kind of targeted incentives like this concessionary gas pricing, and deliver to the Nigerian people, a more secure energy future leveraging gas,” he said.
The initiative is part of efforts to promote cleaner and more affordable energy alternatives for transportation while reducing reliance on petrol. The government’s push for CNG adoption aligns with its broader strategy to utilize Nigeria’s abundant gas resources for economic growth and energy security.
