Federal Government Aims to Save $4.4 Billion in Petrol Imports through CNG Target

Driving Towards Savings: Nigeria’s CNG Revolution

In a bid to bolster gas supply to the local market, Nigeria’s Federal Government is spearheading an initiative to transition approximately one million vehicles to Compressed Natural Gas (CNG). This strategic move is projected to yield annual savings of about $4.4 billion in petrol imports, marking a significant step towards energy sustainability and economic efficiency.

The Presidential Initiative on Compressed Natural Gas (PCNGi) outlined the ambitious plan, highlighting the need for an $890 million investment to establish infrastructure for CNG adoption. At a recent Co-Creation Session on Nigeria Gas Vehicle Monitoring System (NGVMS) in Abuja, Engr. Zayyan Tambari, Coordinator of Regulations, Compliance, and Facilitation at PCNGi, emphasized the government’s goal to replace 20 percent of the nation’s daily petrol consumption, currently standing at 50 million litres, with CNG.

Echoing this sentiment, Hon. Ekperikpe Ekpo, Minister of State Petroleum Resources (Gas), underscored the government’s commitment to optimizing Nigeria’s abundant gas resources. Emphasizing the importance of safety in CNG utilization, Ekpo highlighted the necessity for specific materials and tools across the supply chain.

Engr. Ogbugo Ukoha, Executive Director of Distribution System, Storage, and Retailing Infrastructure at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), shed light on regulatory efforts to promote gas usage. Notably, NMDPRA has gazetted regulations addressing technical frameworks, specifications for gas retailing infrastructures, and fuel quality standards.

As part of its proactive approach, NMDPRA is encouraging petrol station owners to incorporate CNG dispensing points into their facilities. Furthermore, the authority is poised to mandate fuel trucks, fleet owners, and facilities to transition to CNG, given the escalating costs of diesel.

The transition to CNG heralds a new era of energy efficiency and cost-effectiveness for Nigeria. With concerted efforts from government bodies, regulatory agencies, and industry stakeholders, the nation is driving towards a sustainable future powered by clean, affordable natural gas.