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Nigeria Plans Major Increase in Compressed Natural Gas (CNG) Conversions by 2025

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By DAYO ADESULU

Federal Government Targets 733% Growth in CNG Conversions as Part of Energy Transition Initiative

The Nigerian federal government has announced ambitious plans to increase the country’s Compressed Natural Gas (CNG) conversions by **733%**, aiming for a total of **250,000 conversions by June 2025**, up from **30,000** in October 2024. This initiative is part of the Presidential CNG Initiative (Pi-CNG), which is a key component of the palliative measures introduced by President Bola Ahmed Tinubu’s administration.

Future Growth Projections

By **2027**, Nigeria’s CNG conversions are projected to increase dramatically by more than **3,000%**, reaching **1,000,000 conversions** from the current figure of **30,000**. Engr. Zayyanu Tambari, Regulatory & Compliance Coordinator for the Pi-CNG, shared these insights during a virtual event titled “Driving the Energy Transition: CNG Conversion,” organized by the Major Energies Marketers Association of Nigeria (MEMAN).

Expansion of Conversion Partners

The CNG conversion program is currently supported by **100 conversion partners**, with plans to expand to **150 by March 31, 2025**, and **200 by June 30, 2025**. Engr. Tambari highlighted that **85 CNG buses** have already been delivered to four major cities: Abuja, Lagos, Ibadan, and Ilorin, with each city receiving **20 buses**.

Safety and Infrastructure Enhancements

To ensure the safety of CNG usage, the Nigeria Gas Vehicle Monitoring System (NGVMS) will be launched. Engr. Tambari noted that nine additional CNG refueling sites were established in September 2024, along with a concessioning of tricycle routes around these sites for an additional **2,000 tricycles** in 2024.

By October 2024, local manufacturing of CNG kits and cylinders will commence, supported by the launch of a CNG fund aimed at bridging infrastructure gaps. A finance scheme for refueling and the completion of ‘100,000 conversions’ is also planned for November and December 2024.

NIPCo’s Role in CNG Adoption

Ujiadugbeli Nosiediana, Deputy Operations Manager at NIPCo, highlighted the company’s longstanding commitment to CNG conversion since 2009, pioneering Auto-CNG distribution for vehicles in Nigeria. Currently, NIPCo operates **19 CNG stations**, including four main stations that supply CNG to various booster stations across the country. The company has established five conversion workshops in Benin City, Ibafo, Abuja, and Ibadan, focusing on converting petrol vehicles to CNG.

Regulatory Standards and Safety Measures

Engr. Olalekan Omoniyi, Deputy Director of the Standards Organisation of Nigeria, emphasized the importance of establishing regulatory standards for CNG conversion to ensure safety for lives and property. He urged regulators to obtain relevant standards for managing CNG equipment and components, and highlighted the availability of training for stakeholders on compliance with standards.

The Nigerian government’s ambitious plans to significantly increase CNG conversions reflect a strategic move towards energy transition and sustainability. By enhancing the infrastructure and safety measures around CNG, Nigeria aims to foster a cleaner and more efficient energy landscape that benefits both the economy and the environment.

The Nigerian government’s initiatives to expand Compressed Natural Gas (CNG) conversions are part of a broader strategy to address several key issues, including energy sustainability, economic diversification, and reducing reliance on traditional fossil fuels. Here’s a deeper exploration of the implications, benefits, and challenges associated with the CNG expansion in Nigeria:

1. Background on CNG and Its Benefits

Environmental Advantages: CNG is considered a cleaner alternative to petrol and diesel, producing fewer emissions and pollutants. This shift can significantly reduce air quality issues, contributing to better public health outcomes.
Economic Benefits: Utilizing CNG can help stabilize fuel prices and reduce the economic burden on consumers and businesses. As Nigeria has abundant natural gas reserves, leveraging these resources can enhance energy security.
Job Creation: The expansion of the CNG sector is expected to create jobs in various areas, including conversion workshops, fuel distribution, and maintenance services.

2. Infrastructure Development

Refueling Stations: The establishment of additional CNG refueling stations is critical for supporting the growing number of converted vehicles. The government’s plan to launch nine new refueling sites demonstrates a commitment to building the necessary infrastructure.
Local Manufacturing: By initiating local manufacturing of CNG kits and cylinders, Nigeria aims to reduce dependency on imports, enhance local production capabilities, and stimulate economic growth.

3. Partnerships and Collaboration

Involvement of Stakeholders: The initiative is supported by a network of conversion partners and industry stakeholders, such as the Major Energies Marketers Association of Nigeria (MEMAN) and NIPCo, which plays a crucial role in the distribution and conversion processes.
Training and Standards Compliance: The establishment of standards by regulatory bodies such as the Standards Organisation of Nigeria (SON) ensures that safety protocols are followed during the conversion process, protecting both consumers and the environment.

4. Challenges and Concerns

Funding and Investment: While the initiative is ambitious, securing adequate funding for infrastructure development and conversion programs remains a challenge. The government will need to attract both domestic and international investment to support these plans.
Public Awareness and Acceptance: There is a need for public education campaigns to raise awareness about the benefits of CNG and encourage vehicle owners to consider conversions. Addressing misconceptions about safety and performance compared to traditional fuels is critical.
Regulatory Hurdles: Navigating the regulatory landscape and ensuring compliance with safety standards can be complex. Continuous engagement with stakeholders is necessary to streamline processes and reduce bureaucratic delays.

5. Future Prospects

Long-Term Goals: The Nigerian government aims to increase CNG conversions to **1,000,000 by 2027**. Achieving this goal would require sustained efforts in infrastructure development, public engagement, and regulatory compliance.
Integration with National Energy Policy: The CNG expansion aligns with Nigeria’s broader energy policy objectives, which include diversifying the energy mix and enhancing the role of natural gas in the national economy.

6. Global Context

Global Energy Transition: As countries worldwide transition to cleaner energy sources, Nigeria’s push for CNG aligns with global trends aimed at reducing greenhouse gas emissions and fostering sustainable energy practices.
Regional Collaboration: Nigeria can benefit from regional partnerships with neighboring countries that have similar energy needs and challenges, facilitating knowledge sharing and collaborative solutions.

Conclusion

The Nigerian government’s initiative to significantly increase CNG conversions represents a pivotal shift toward a more sustainable energy future. By addressing infrastructure needs, fostering partnerships, and overcoming challenges, Nigeria aims to leverage its abundant natural gas resources, improve air quality, and create economic opportunities while contributing to the global energy transition. As the initiative progresses, continued stakeholder engagement and awareness campaigns will be essential for its success.

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