Presidential CNG initiative attracts $50 million investment

The Presidential Compressed Natural Gas Initiative (PCNGI) has attracted over $50 million in investment in the last five months, an official has said.

Programme Director/Chief Executive of PCNGI, Michael Oluwagbemi, disclosed this at the Southwest stakeholders’ forum held in Lagos on Wednesday.

“I am pleased to announce to you that since that December till date, over $50m have been mobilised directly by the sector, much more than any amount of money that has been mobilised in the sector in the last eight years combined in just five months,” Mr Oluwagbemi said.

Last August, President Bola Tinubu approved the establishment of the PCNGI.

The Special Adviser to the President on Media and Publicity, Ajuri Ngelale, in a statement said the establishment of the initiative was in furtherance of his commitment to easing the impact of fuel subsidy removal on Nigerians by reducing energy costs.

This transformative initiative, according to Mr Ngelale, is poised to revolutionise the transportation landscape in the country, targeting over 11,500 new Compressed Natural Gas (CNG)-enabled vehicles and 55,000 CNG conversion kits for existing Premium Motor Spirit (PMS)-dependent vehicles.

“While simultaneously bolstering in-country manufacturing, local assembly and expansive job creation in line with the presidential directive,” the spokesperson noted at the time.

On Wednesday, Mr Oluwagbemi said, “Thousands of Nigerian companies are investing in the sector because they see that the present administration is serious about moving the country forward and leveraging the gas resources God has given us.”

He said the CNG initiative was created to cushion the effects of fuel subsidy removal on Nigerians and open new investment windows for domestic and global investors in the gas sector.

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According to him, the government has continued to mobilise the private sector for compressed natural gas use and investments.

He explained that the series of investment inflows to the sector showed the level of commitment by the present administration to boosting cleaner energy and promoting a more efficient energy sector.

Also speaking, the Minister of State, Labour and Employment, Nkeiruka Onyejeocha, said, “As we gather here, we are reminded of the pressing need to propel our nation forward, not just in terms of economic growth, but in creating opportunities that uplift every citizen.”

She added that the Presidential CNG Initiative stands as a testament to this vision, as it not only seeks to revolutionise Nigeria’s transport sector with cleaner energy but also commits to up-skilling and training 25,000 auto technicians in the process.

She noted that the PCNGI and the Federal Ministry of Labour and Employment have partnered, ensuring that every job created and every skill imparted is not just a statistic but a step towards empowerment and progress.

“Moreover, I want to address a fundamental issue that often plagues government-led initiatives: the lack of proper metrics to measure their impact,” she said.

Historically, Ms Onyejeocha said the governments have been involved in numerous job creation programmes, yet the true extent of their success is often overshadowed by inadequate measurement and reporting.

“Under the leadership of President Bola Ahmed Tinubu, however, we are committed to a paradigm shift. We recognise the importance of accountability and transparency in governance. That is why we are determined to not only create meaningful change but also to showcase our achievements with pride.

“As we embark on this journey together, it’s imperative that we keep proper track of the jobs our programmes create. The Federal Ministry of Labour and Employment is committed to this task, ensuring that the impact of initiatives like the Presidential CNG Initiative is not just measured in numbers but in the lives transformed. Furthermore, I want to emphasise the role of the Labour Ministry in bringing together artisan associations and unions.

“These associations and unions are the backbone of our workforce, and by uniting them, we can amplify our efforts towards achieving the 25,000 technicians target set forth by the Presidential CNG Initiative,” she said.

In his presentation, the Head of Commercial at PCNGI, Tosin Coker, said 590 CNG-compliant buses purchased by the Ministry of Finance will be delivered to the people within the month while noting that distribution of the buses will be based on access to CNG.

Mr Coker explained that electric vehicles and 5,500 tricycles would also be provided to alleviate Nigeria’s transport challenges and support the masses.

He noted that the tricycles would be available on hire purchase, with the beneficiaries allowed to pay overtime.