The Federal Government has committed over $75 million towards the development of Compressed Natural Gas (CNG) infrastructure as part of efforts to promote cleaner energy across the country.
Mrs. Olu Verheijen, the Special Adviser to President Bola Tinubu on Energy, disclosed this at the ongoing 18th OTL Africa Downstream Energy Week in Lagos on Monday, according to a report by News Agency of Nigeria (NAN).
Verheijen, represented by her Technical Adviser on Energy, Mrs. Eriye Onagoruwa, stated that the investment aligns with the government’s goal to advance sustainable energy and cut carbon emissions.
Highlighting the sector’s growth potential, she noted, “Despite having an oil and gas industry that has been operational for over 80 years, Nigeria has only tapped into 4% of its resources since 2016.”
“The government aims to foster transparency and efficiency by introducing incentives that encourage investment in CNG, liquefied natural gas (LNG), and electric vehicle technologies.
“These measures will not only enhance sector growth but also make energy solutions more accessible and environmentally friendly,” she said.
Verheijen emphasized that the initiative will offer affordable, cleaner cooking options, promoting healthier households and a greener environment. According to her, expanding CNG infrastructure will also reduce reliance on traditional fuels and advance Nigeria’s global sustainability commitments.
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On his part, Lagos State Governor, Mr. Babajide Sanwo-Olu, represented by the Commissioner for Energy, Mr. Biodun Ogunleye, reaffirmed the state’s dedication to cleaner energy solutions.
Sanwo-Olu stressed that energy transition extends beyond fuel replacement, saying, “Energy transition isn’t just about replacing one fuel source; it involves creating a holistic ecosystem that includes exploration, production, storage, and retailing.”
In his remarks, Mr. Adetunji Oyebanji, Chairman of the Advisory Board for the OTL Africa Downstream Energy Week, discussed the impact of Nigeria’s downstream sector deregulation.
He described the deregulation as a transformative move fostering competition, transparency, and efficiency. Oyebanji further highlighted that developments such as the launch of the Dangote Refinery would shape the future of the industry.
He encouraged stakeholders to actively participate in shaping Africa’s energy landscape, noting that investment in CNG infrastructure is a pivotal step toward a sustainable energy future for Nigeria.
What you should know
The Compressed Natural Gas (CNG) Conversion Incentive Program, spearheaded by the Presidential Compressed Natural Gas Initiative (PCNGi), is designed to alleviate the impact of rising fuel costs and promote the adoption of cleaner energy sources for transportation.
The program provides incentives for vehicle owners and fleet operators to convert their petrol-powered vehicles to CNG, a more affordable and environmentally sustainable fuel option.
PCNGi launched the CNG Conversion Incentive Program on September 13, 2024, beginning with Lagos, Ogun, and Oyo states.
The initiative expanded to Kaduna and Abuja on September 14, 2024.
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