PCNGI attracts $491m investments, generates over 84,000 jobs in one year
By Seun Ibiyemi
The Programme Coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), Mr Michael Oluwagbemi, has revealed that the initiative has attracted over $491 million in investments into the AutoCNG sector, creating more than 9,000 direct and 75,000 indirect jobs over the past year.
Speaking to State House Correspondents on Monday, Oluwagbemi shared updates on the progress of the initiative and its growing impact across the country.
He noted that the capacity for converting vehicles from petrol and diesel engines to bi-fuel alternatives has expanded significantly — from just seven certified centres at the start of the programme to over 200 today.
Oluwagbemi also reported that the Conversion Incentive Programme (CIP), launched by President Bola Tinubu in August 2024, had led to the recruitment of 3,000 new technicians. The CIP was designed to facilitate the free or subsidised conversion of up to one million vehicles — with a focus on commercial transport, rideshare services, and government-owned vehicles.
According to the coordinator, around 22,000 conversion kits were procured at the outset, with deliveries commencing in October 2024 through the Ministry of Finance.
He went on to explain that the PCNGI aims to establish 10,000 conversion centres by the end of the second quarter of 2025, having commenced roll-out in December 2024.
To support public sector adoption, the initiative has also introduced a discounted financing model for civil servants, in collaboration with CreditCorp, to help them manage the balance of vehicle conversion costs.
“To prove the practicality and efficiency of compressed natural gas (CNG) and electric vehicle (EV) platforms, a fleet of CNG buses, tricycles, and electric buses were procured on our behalf by the Federal Ministry of Finance,” he said. “So far, 421 CNG buses and 36 EV buses have been delivered, with 405 already deployed. These include buses allocated as part of agreements with the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) during wage negotiations.”
Oluwagbemi explained that PCNGI was set up to support the widespread adoption of alternative-fuelled vehicles — including both natural gas and electric — in response to the removal of petrol subsidies, which had caused a significant rise in transport costs.
While acknowledging recent shortages in CNG supply and long queues in some areas, he assured the public that this was a temporary situation. He attributed the strain to a surge in conversions, with over 30,000 additional vehicles retrofitted by the private sector — effectively more than quintupling Nigeria’s CNG fleet within a short span of time.
“This has naturally put a strain on existing gas infrastructure,” he said, “but the PCNGI team is actively working to address these challenges.”
He announced the launch of the Refuelling On-Lending Programme, a scheme aimed at supplying refuelling equipment to key conversion centres and partner refuelling stations. A total of 25 sites across 15 states are expected to benefit.
“The first site, located in Kwara State, is already operational. By 1 May 2025, additional locations in Kogi, Ekiti, Rivers, and Abuja will go live. By 12 June, Kaduna, Abia, and Enugu will come onboard, with Niger, Kano, and Benue following shortly,” he said.
Oluwagbemi explained that between May and November 2024, PCNGI had embarked on a wide-ranging public sensitisation campaign and stakeholder outreach effort to build private sector confidence and encourage complementary investment.
He added that this campaign had succeeded in sparking growing interest from both commercial operators and private vehicle owners.
To further strengthen refuelling infrastructure, PCNGI has partnered with private companies to roll out more than 150 new refuelling locations over the next 18 months.
“NNPC has already established 12 stations, with eight more expected this quarter. We’ve secured approval for an additional 100 sites over the next 18 to 24 months,” he noted.
“NIPCO has imported equipment for 32 daughter-station sites — 22 are already operational and eight are under construction. Bovas currently has eight sites under construction, while AY Shafa has completed one and has another nine underway. Other players such as Ibile Oil and Gas, MBH, and Mikano are investing in both daughter and mother stations.”
Addressing safety concerns, Oluwagbemi referenced the isolated incident in Benin last year, which was caused by individuals illegally fabricating CNG cylinders. He confirmed that those responsible have since been arrested by law enforcement.
He assured the public that with the forthcoming launch of the Nigeria Gas Vehicles Monitoring System (NGVMS), safety would be significantly enhanced. Only vehicles with certified tanks and proper accreditation would be allowed to refuel under the new system.
“The NGVMS is currently in the final stages of development, and we anticipate its rollout by the end of the year. We are absolutely committed to protecting the lives and investments of everyone involved in this vital sector,” he concluded.