The Nigerian National Petroleum Company Limited (NNPCL) has announced plans to cut the cost of Compressed Natural Gas (CNG) vehicle conversions by 50%, in a strategic move to accelerate adoption and reduce dependence on petrol-powered transport. This initiative is part of the Presidential CNG Initiative (Pi-CNG) launched under the Federal Government’s Renewed Hope Agenda.
During an investigative hearing before the House of Representatives Ad-Hoc Committee on CNG Policy Implementation, Executive Vice President of Gas, NNPCL, Lekan Ogunleye, revealed that the firm has appointed a dedicated focal point to drive private sector participation and streamline investment in CNG infrastructure.
According to Ogunleye, “NNPCL has already put in place the critical infrastructure required for a nationwide rollout. We’re supporting investor-led expansion while actively working to reduce conversion costs for consumers.”
CNG Adoption Grows, Centres Expand Nationwide
Michael Oluwagbemi, Project Director of the Presidential CNG Initiative (PCNGi), confirmed significant progress. Conversion centres have surged from just 7 in 2023 to over 300 centres in 24 states, with more expected by Q1 2026. He noted that some sectors already benefit from free vehicle conversions through private-public partnerships and reiterated the initiative’s zero-tolerance stance on corruption—disclosing the recent dismissal of two staff over ethical breaches.
“We are training more technicians to support Phase Two,” Oluwagbemi added. “Scaling access and enforcing integrity remain top priorities.”
Government Highlights Environmental and Economic Goals
Minister of State for Petroleum (Gas), Ekperikpe Ekpo, represented by Permanent Secretary Vitalis Ibe, stressed that CNG adoption is vital to Nigeria’s climate action strategy. “Compressed Natural Gas is cleaner, safer, and more cost-effective than petrol. This initiative supports emissions reduction and helps Nigerians cut transport expenses,” he said.
Reps Demand Transparency, Equity in Implementation
Speaker of the House, Tajudeen Abbas, represented by Hon. Sada Soli, called the policy a cornerstone of Nigeria’s energy transition agenda. He urged stakeholders to prioritise equity and ensure all states benefit equally from the programme.
However, the committee chair, Hon. Jaha Ahmadu Usman, raised critical concerns about the initiative’s viability, transparency, and safety. “More than a year after fuel subsidy removal and Pi-CNG’s launch, access remains limited, safety unclear, and public engagement low,” he warned.
Usman outlined four investigative focus areas:
- Safety and regulatory oversight
- Geographical equity
- Global best practice alignment
- Long-term sustainability
Stakeholders Call for National Inclusion
Representatives from the National Union of Road Transport Workers and the Road Transport Workers Employees Association of Nigeria commended the initiative but stressed that every state must be included. They argued that expanding access would ensure that both commercial drivers and low-income earners benefit from the transition.
If successfully implemented, the 50% reduction in CNG conversion costs could drive mass adoption and reduce fuel-related expenses for millions of Nigerians. However, the success of the rollout will depend on consistent funding, regulatory discipline, and nationwide infrastructure development.
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