The Nigeria government has officially launched its Compressed Natural Gas (CNG) Conversion Incentive Program in eight states, with plans to expand to nine more by the end of 2024. This initiative, driven by the Presidential Compressed Natural Gas Initiative (PCNGi), aims to provide an affordable, environmentally friendly alternative to petrol by converting vehicles to run on CNG.
The Initial Rollout
The states where the CNG Conversion Incentive Program is currently active include Oyo, Lagos, Ogun, Edo, Delta, Kogi, the Federal Capital Territory (FCT), and Nasarawa. The program is set to extend to Kwara, Ekiti, Osun, Niger, Rivers, Kano, Akwa Ibom, Abia, and Enugu in the next phase. PCNGi emphasized that while a nationwide rollout is the ultimate goal, the scale and complexity of the project require a strategic, phased approach. As a result, a simultaneous activation across all 36 states and the FCT is not feasible at this time.
Related Story: Nigeria set to launch 2700 CNG-powered vehicles by May 29
Understanding the CNG Conversion Incentive Program
The CNG Conversion Incentive Program was introduced to address the challenges posed by rising fuel costs and promote cleaner energy alternatives for transportation. It offers incentives for vehicle owners and fleet operators to convert their petrol-powered vehicles to CNG, which is both more affordable and environmentally sustainable. By switching to CNG, drivers can significantly reduce fuel expenses while also contributing to efforts to decrease the carbon footprint of the transportation sector.
The program first kicked off on September 13, 2024, in Lagos, Ogun, and Oyo states, and quickly expanded to Kaduna and Abuja on September 14. It is designed to encourage widespread adoption of CNG in Nigeria, aligning with global trends toward cleaner energy solutions.
Incentives for Vehicle Owners
One of the highlights of the program is the offer of free CNG conversion kits. PCNGi has announced that the first 50 vehicles inspected and approved for conversion at each of the designated CNG centers will receive these kits free of charge. This incentive aims to accelerate the transition to CNG, reducing the financial burden on vehicle owners who wish to make the switch.
Once converted, these vehicles can refuel at a cost of N230 per Standard Cubic Meter (SCM) of CNG at any NIPCO station, providing substantial savings compared to the cost of petrol. The cost-effectiveness of CNG, combined with the government’s support, makes it an attractive alternative for both personal and commercial vehicle owners.
Building the Infrastructure for Success
In preparation for the CNG Conversion Incentive Program, PCNGi, in partnership with the Nigerian National Petroleum Corporation (NNPC) and NIPCO Gas, inaugurated twelve new CNG stations in Lagos and Abuja in June 2024. This expansion of CNG refueling infrastructure is a key component of the program’s success, ensuring that vehicle owners have convenient access to refueling stations.
In July 2024, PCNGi took another significant step by signing a Memorandum of Understanding (MoU) to convert one million commercial vehicles to CNG by 2027. This ambitious target will be supported by 2,000 workshops nationwide, where vehicles can undergo the necessary conversion process.
What This Means for Nigeria
The CNG Conversion Incentive Program represents a strategic move by the Federal Government to mitigate rising fuel costs while promoting a cleaner, more sustainable energy source. By encouraging the adoption of CNG, the government aims to reduce the country’s reliance on petrol, lower transportation costs, and contribute to global environmental goals.
As the program continues to expand, more vehicle owners will have the opportunity to benefit from CNG’s affordability and environmental advantages, setting a precedent for other African nations to explore similar sustainable energy initiatives.
