Avalon Policy Dilogue: Presidential CNG Initiative Aims to Convert 1 Million Cars by 2027
The Federal Government has launched a bold initiative to convert 1 million vehicles to Compressed Natural Gas (CNG) by 2027. The announcement came from Program Director of the Presidential CNG Initiative, Engr. Michael Oluwagbemi during his address at the Avalon Policy Dialogue.
Oluwagbemi outlined that while the government will not foot the bill for the conversion of all these vehicles, it has devised a mass conversion incentive program that will be predominantly driven by the private sector. Speaking about the initiative, he revealed that down payments have been made for 20,000 conversion kits, set to be available within the next month. Furthermore, he stated that plans are underway to establish conversion sites nationwide through affiliated partners.
According to him, the program has already seen significant interest, with 85 conversion sites registered under the affiliate program. “Since December 2023, the initiative has attracted $50 million in investments, primarily focused on refuelling and conversion infrastructure,” Oluwagbemi stated. “Over 120 applications for refuelling stations are currently underway pending approval at NMPDRA and we are ensuring it goes through every regulatory hurdle. Most of it will deliver additional CNG dispensing capacity at current refuelling price.”
On his part, the CEO of Mezovest, Mr Tosin Thompson, commended the Federal Government on the CNG initiative describing it as timely and strategic for revitalizing the economy. He acknowledged the role that the Presidential CNG Initiative has been playing and added that collaboration with the private sector will be key to the success of the initiative.
“It is obvious that the federal government is serious about driving CNG adoption and we in the private sector are delighted that there is adequate demand stimulation and incentive that would give us the confidence to invest long term in the sector,” Thompson said. He added that beyond plans to expand already existing conversion sites and invest in refuelling infrastructure, “we are looking into developing the human capital required to play in this sector for the long term.”
Oluwagbemi concluded by emphasizing the role of the private sector, stating, “I am confident that the private sector recognizes the immense opportunity within the CNG sector and will continue to invest, bridging the gap and driving the adoption of CNG.”
