The federal government announced yesterday that investors had raised $50 million over the last six months to fund infrastructure development for compressed natural gas adoption in the transportation sector.
In addition, the government announced a 50 per cent discount on conversion kits priced between N1.2 million and N1.5 million to encourage carriers to switch to CNG, which can save up to 77 percent in energy expenses, Vanguard.
In his speech at a stakeholders meeting on the benefits of adoption of CNG as a sustainable and economical energy alternative for transporters, the Programme Director of the Presidential Initiative on Compressed Natural Gas Programme, PCNGI, Mr. Michael Oluwagbemi, the government is also engaging with banks to supply cash for the scheme.
The event, organized by Portland Gas and PCNGI, featured the theme “Driving Sustainable Transportation: Accelerating CNG Adoption in Nigeria”.
Oluwagbemi represented by Mr. Tosin Coker stated that the government will soon deploy CNG-powered buses and tricycles to enhance public transit in Abuja.
He said “In December 2023, we hosted our first investor forum, which saw tremendous participation from companies now investing in the sector. I am pleased to report that well over $50 million has been mobilised directly by the sector since then more than any amount mobilised in the last ten years combined. We are also enabling ordinary Nigerians, particularly transport operators, to convert their vehicles.
“Last month, on May 29, we announced the Conversion Incentive Program, making it easier for Nigerians to adopt CNG. This effort is supported by private sector partners, development funds and banks, all eager to finance this transformative initiative.
“More importantly, in an effort to reduce the cost of public transport, we are catalysing the sector by supporting the introduction of CNG buses and tricycles. In the next few days, you will witness these buses on the streets of Abuja, even as we also start to make conversion kits available at 50% discount to the transport sector.”
Meanwhile, the Managing Director, Portland Gas Limited, Mr. Folajimi Mohammed pointed out that, in addition to being less expensive than gasoline and diesel, CNG delivers higher mileage for drivers and vehicle owners.
Mohammed stated that the technology allows owners to keep their previous petrol/diesel system and switch fuel as needed.
He said “CNG is a cleaner-burning fuel, resulting in lower emissions and better air quality. CNG is generally cheaper than petrol, leading to significant fuel cost savings. CNG vehicles have a longer engine life due to the cleaner burning properties of the fuel.
“The conversion involves installing a CNG tank, fuel lines, regulators, and other accessories in the vehicle. Certified CNG conversion centres handle the entire conversion process, which typically takes three hours. The vehicle’s existing petrol system is kept intact, allowing the driver to switch between petrol and CNG as needed.
“Conversion kits are available for dedicated CNG and bi-fuel. A hybrid system allows the vehicle to run on either natural gas as the primary fuel or gasoline as the reserve fuel. When the natural gas runs out, the engine is switched over to gasoline either manually with a dashboard switch, or automatically, dual fuel vehicles are well suited for applications in which much of the driving is in an urban area, serviced by a CNG fill station, but where occasional long-distance trips are required.”
He said that the cost of conversion varies based on the car model, size of the CNG tank, and conversion center, but it usually ranges between N1.2m and N1.5m.
