The Federal Government has announced that the Automobile Compressed Natural Gas (AutoCNG) initiative has successfully attracted over $491 million in investments within the last year. The Programme Director and Chief Executive Officer of the Presidential CNG Initiative, Engr. Michael Oluwagbemi, revealed this during a press briefing with State House correspondents at the Presidential Villa in Abuja.
Engr. Oluwagbemi, reported that the initiative has created over 9,000 direct jobs and 75,000 indirect jobs. He noted that the number of facilities capable of converting vehicles from solely petrol or diesel to bi-fuel systems has increased from seven at the programme’s inception to over 200.
Oluwagbemi also highlighted that the Conversion Incentive Programme, launched by President Bola Tinubu in August 2024, has created employment opportunities for 3,000 newly trained technicians.
He explained that the initiative aims to support the free or subsidised conversion of one million vehicles—particularly commercial transport, rideshare, and government (MDA) vehicles—under the supervision of the Presidential Compressed Natural Gas Initiative (PCNGI). The coordinator revealed that an initial batch of 22,000 conversion kits was procured, with deliveries beginning in October 2024 through the Ministry of Finance. Oluwagbemi also mentioned that the initiative targets the establishment of 10,000 conversion centres by the end of the second quarter, following its launch in December 2024.
He stated that the programme had been expanded by the PCNGI to include a discount scheme for public servants, enabling them to finance the remaining cost of vehicle conversions through a partnership with Credit Corp.
“If you also recall, to demonstrate the efficacy of CNG and electric vehicles (EV) platforms, CNG buses and tricycles as well as EV buses were procured on our behalf by the Federal Ministry of Finance. A total of 655 buses were procured. He added “About 421 CNG buses and 36 EV buses have been delivered so far, and the programme has deployed 405 buses, either as part of the settlement of terms with the NLC and TUC as part of the wage negotiations.”
Oluwagbemi explained that the Presidential CNG Initiative (PCNGI) was created to promote the use of natural gas and other alternative-fuel vehicles, including electric vehicles, across the country. He noted that the initiative was introduced in response to the removal of the fuel subsidy, which initially caused a sharp rise in transportation costs as the president moved to stabilize the economy.
While stating that there had been a visible gap in CNG availability with longer queues in some locations, he, however, assured that the situation would be temporary. He linked the pressure to the surge in CNG truck usage and over 30,000 CNG conversions carried by the private sector, which has significantly expanded the CNG fleet of Nigeria. “This naturally will put pressure on our gas infrastructure; but PCNGI is not relenting in finding solutions,” he said.
Oluwagbemi stated that PCNGI had introduced a new scheme known as ‘Refueling On lending Programme’ aimed at supplying refueling infrastructure to major conversion centres and key refueling partners. He said that 25 locations across 15 states are set to benefit from the programme.
Oluwagbemi also noted that from May to November 2024, PCNGI embarked on an intensive stakeholder engagement and public awareness campaign to encourage private participation and co- invest alongside the government’s investments. This effort, he said, has successfully driven up demand among both commercial transport operators and private vehicle owners.
To strengthen infrastructure development, Oluwagbemi said the PCNGI has partnered with private sector players to roll out more than 150 new refueling stations over the next 18 months. He addressed a past safety incident in Benin, attributing it to economic saboteurs who had been involved in the illegal fabrication of CNG cylinders. He confirmed that those responsible had since been apprehended by the police.
Oluwagbemi noted that with the implementation of the Nigeria Gas Vehicles Monitoring System (NGVMS), such incidents can be prevented, as only accredited and properly labeled vehicles with certified CNG tanks will be allowed to refuel. “The necessary steps to launch the NGVMS are ongoing, and we expect it to be in place by year-end. We won’t relent in ensuring the safety of lives and investments of participants in the sector,” he assured.
