CNG: FG call for increased state governments investment

…says over 130 conversion centres established across Nigeria

The federal government through the Presidential Compressed Natural Gas Initiative (PCNGI) has advocated the need for increased state government’s participation in its ongoing drive towards providing a cheaper and cleaner fuel for Nigerians, through the Compressed Natural Gas.

According to Michael Oluwagbemi, the Programme Director of the Presidential Compressed Natural Gas Initiative, who spoke in a press conference in Abuja on Saturday, state governments, being direct beneficiaries of revenue from improved transportation and energy policies, should lead by example in investing in CNG infrastructure.

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Oluwagbemi explained that the government have signed pact with over 75 conversion partners in eight states including Lagos, Ogo, Oyo, Delta, Kogi, Nasrawa, FCT and Kaduna.

“These eight states are the ones where the conversion incentive program has been kicked off. Later this month, we’ll also be adding for the next six to eight weeks, we’ll be adding additional nine states.

“That will include Kwara, Ekiti. We’ll also be adding Akwa Ibom, Rivas, Abia, Enugu, Kano and Niger. These states will be joining the category of states where we’ve activated the program.

“If we have kits on the ground but there are no conversion centres and no technicians, then nobody can install those kits. So even when we were still expecting the kits, we were encouraging our investors and our entrepreneurs. And I have to say, it’s not Nigerian government that set up these centres.

These are set up by business people, entrepreneurs and innovators. And we targeted having 100 of them set up this year. But I’m pleased to announce to you that today there are over 130 conversion centres in the country as a result of our work.

“And I think before the end of the year, we have an additional 120 to be at about 250 before the end of this year. Every day, we have business people and entrepreneurs coming to our doors asking us for templates and support in terms of how and what they should do, where they should place these conversion centres, and we continue to work with them. That, I think, is the big news.

“In terms of states, I cannot emphasise enough the role of states in the energy transition program of Mr. President. Ultimately, states own transportation policies, and the federal government can only encourage states to switch to energy-efficient vehicles and invest in infrastructure like pipelines,” Oluwagbemi said.

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He also pointed out that states control most of the regulations surrounding transportation activities, and by investing in energy transition initiatives, they stand to gain from increased revenue distributions.

“When it comes to the regulation of transportation activities, it is the responsibility of states, and state governments are the number one beneficiaries of an increase in the distribution of revenue. Since they are the most significant beneficiaries, they should invest in it,” he said.

Oluwagbemi urged states to encourage private individuals, including civil servants, to convert their petrol-powered vehicles to CNG and to make direct investments in the dispensing of the product.

“States should encourage private individuals, including their civil servants, to convert their own vehicles to CNG. They can also have direct investments in dispensing the product,” he added.

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According to him, the government is making sure that the investment is going to the corridor with the most users, noting that 90 per cent of Nigerians ply three major transit corridors: The Calabar to Benin transit corridor; the Lagos to Kano transit corridor; and the Lagos-Benin-Lokoja corridor.

He also explained that providing CNG refuelling stations along these corridors would significantly reduce transportation costs and the overall cost of goods, especially food.