1 week Ago By Innocent Oweh
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Says It May Hit $1bn By End Of 2025 ABUJA – Despite skepticism associated with the Compressed Natural Gas policy (AutoCNG), the Federal Government has put the level of investment attracted to the sector at over $491 million within the last one year. This is as the Presidential Compressed Natural Gas Initiative (PCNGI) has said it was aiming to attract $1 billion in investments into Nigeria’s alternative fuel sector by the end of 2025. The Programme Director and Chief Executive Officer of PCNGI, Engr.
Michael Oluwagbemi, disclosed this while briefing State House correspondents, during the ‘Meet the Press’, at the Presidential Villa, Abuja. Engr. Oluwagbemi, who said that the initiative has created over 84,000 direct and indirect jobs, expressed confidence that the ambitious investment target is well within reach, citing recent progress in the sector.
Recall that President Bola Tinubu launched the PCNGI on October 1, 2023, after the removal of fuel subsidy on May 29, the same year, with the aimed of facilitating the adoption of compressed natural gas and electric vehicles (EVs) in Nigeria to cushion the rising cost of transportation. Flanked by some officials of the PCNGI and the Presidential Media Team, led by Bayo Onanuga, Engr. Oluwagbemi, said: “We’ve set a goal of about $1 billion of investment for ourselves this year.
I think we have made appreciable progress towards achieving that. If I just take the hundred additional NNPC investments in daughter stations, that’s close to $50 million, and the $27 million arrested, we’re already close to $100 million in the last one month alone.” He explained that the continued growth in investment inflows could see the initiative surpass its target, saying, “So if I’m doing about $100 million a month, I think I will be close to $1.
2 billion by the end of the year. So yes, I think I’m confident we’ll hit our $1 billion goal.” Oluwagbemi also provided updates on the initiative’s infrastructure expansion, particularly in the areas of refueling and conversion capacity.
“We have a goal of having 500 conversion centres set up this year. To have a total of 500 conversion centres at the end of the year means an additional 300 are supposed to be set up this year”, he said. He further stated that the expected increase in conversion centres will significantly expand Nigeria’s capacity to transition vehicles from petrol to gas.
“That will increase our conversion capacity from about 65,000 a year currently, to about 250,000 to 300,000 a year at the end of this year. So it will also be a significant boost for conversions,” he noted. Speaking further, Oluwagbemi revealed that PCNGI has attracted more than $491 million in private sector investments within the past year.
Oluwagbemi described the milestone as the most important achievement of the initiative to date, noting that it followed extensive stakeholder engagement and public awareness campaigns from May to November 2024. “We have attracted over $491 million of investments in the past year to AutoNG and we are very proud of it. This has created over 9,000 direct and 75,000 indirect jobs”, he said.
He said that the initiative is not only helping to reduce the cost of living but is also boosting job creation, driving industrial investments, and promoting environmental sustainability. He revealed that Nigeria’s vehicle conversion capacity had increased dramatically—by almost 3,000 percent—thanks to private sector investments that established more than 200 new conversion centers, up from just seven at the start of the programme. “This has directly employed over 3,000 new technicians as a result of the Conversion Incentive Programme,” he added.
The Conversion Incentive Programme (CIP), which was introduced in response to cost-ofliving protests in August 2024, is targeted at converting one million vehicles—primarily public and government-owned—either for free or at subsidized rates. So far, about 22,000 conversion kits have been delivered, with 10,000 conversions expected to be completed by the end of the current quarter. “We’ve also expanded the programme to allow deep discounts for public servants and will soon launch a financing initiative in collaboration with Credit Corp and public sector unions,” he revealed.
Oluwagbemi also highlighted the procurement of 655 CNG and EV buses through the Federal Ministry of Finance. Of these, 421 CNG buses and 36 EV buses have been delivered, with 405 already deployed under various government and commercial transport schemes. “The Renewed Hope Mass Transit scheme launched during the yuletide has continued commercially and will soon be expanded to tricycles,” he noted.
Responding to recent concerns over fuel availability, Oluwagbemi said the PCNGI had launched a Last Mile Gas Infrastructure scheme to support refueling needs and ease pressure caused by increased CNG adoption. “We are providing equipment at cost to key conversion centres and refueling partners, with 25 sites targeted and 15 states slated for coverage. The first site in Kwara is already live,” he said, adding that the initiative is expected to reach 17 states by June and expand to 24–30 states by the end of the year.
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