PCNGi Reveals $200m Investment as Over 100,000 Vehicles Convert to CNG

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The Presidential Compressed Natural Gas Initiative (PCNGi) has successfully converted over 100,000 vehicles to CNG or bi-fuel configurations, contributing to a reduction in fuel costs by more than 60%.

Michael Oluwagbemi, the Project Director and CEO of PCNGi, made this announcement in a statement on Wednesday, providing an update on the progress of the initiative.

According to Oluwagbemi, the initiative has already attracted over $200 million in investments to develop the necessary CNG infrastructure, leading to the creation of thousands of jobs across the country. The statement, titled “Status Update on the Presidential CNG Initiative,” highlighted that the growing demand for CNG-powered vehicles has resulted in the establishment of more conversion centres, bringing the total to over 140 centres, up from just seven last year.

“To date, over 100,000 vehicles have been converted from petrol to CNG/bi-fuel-powered, and more conversion centres are being established across the country. Investors are ramping up the development and deployment of CNG infrastructure, with over $200 million already invested across the value chain,” Oluwagbemi said.

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The initiative has sparked widespread public interest, particularly in the commercial transport sector, with plans to convert one million commercial vehicles to CNG or bi-fuel configurations within the next three years. This ambitious target has received the backing of the National Union of Road Transport Workers, which is supportive of the initiative’s goals.

However, the project director took aim at media outlets he believes have misrepresented the initiative. In particular, he refuted claims made in a recent editorial by The Punch, which had cited that there were only 50 conversion centres. He clarified that the actual number of centres has risen to more than 140, significantly surpassing the figure reported.

“We believe the sanctity of facts is not lost on The Punch, but to claim or assert without veracity and evidence is an obvious attempt at mischief,” Oluwagbemi said, stressing that the number of conversion centres has increased to meet growing demand.

Additionally, Oluwagbemi addressed concerns raised by some commercial drivers about the costs associated with conversion. He clarified that conversions for commercial vehicles are entirely free under the Conversion Incentive Programme, aimed at making the transition to CNG more accessible.

The initiative has not been without its challenges. Following a CNG cylinder explosion in Edo State, Oluwagbemi took time to reassure the public about the safety of CNG as an alternative fuel.

He explained that the incident was caused by the failure of a substandard, uncertified CNG cylinder during refilling. He also emphasized that CNG is safer than other fuel options, citing that it is “eight times less explosive than diesel and eighteen times less explosive than petrol.”

In further support of the program’s credibility, Oluwagbemi highlighted the Nigerian government’s commitment to the initiative.

He pointed to the conversion of fleet vehicles by several government agencies, including the Nigerian Army, Nigeria Police, and Federal Road Maintenance Agency.

He also referenced a federal directive requiring all newly purchased government vehicles to be CNG-enabled.

Looking to the future, the PCNGi chief announced a new collaboration with financial institutions through the Credit Corp Credit Access for Light and Mobility programme. This initiative will provide loans to civil servants and private-sector employees to help them convert their vehicles to CNG, expanding the reach of the program.

“The initiative will allow civil servants and private-sector employees to obtain loans for CNG conversions, further expanding access to the initiative’s benefits,” Oluwagbemi explained.