…says 200,000 CNG automobiles on highway by December 2025
The Presidential Compressed Pure Fuel Initiative (PCNGi) has launched the implementation of its Concessionary Autogas Provide and Pricing Framework to manage pricing and streamline provide in Nigeria’s fast-growing auto CNG market.
The launch comes amid surging demand for compressed pure fuel instead gasoline and a fast enlargement of refueling stations throughout the nation, positioning CNG as a key part of the federal government’s clear vitality transition technique.
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Talking on the Mobility CNG Provide Framework Kick-Off Occasion in Abuja, Michael Oluwagbemi, Programme Director, PCNGi, highlighted the importance of the framework as a key part of President Bola Tinubu’s ongoing vitality reforms.
He defined that the brand new pricing construction, accredited earlier in 2024 by the Chief Government of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), permits for autogas CNG to be priced decrease than fuel for energy technology or industrial use, recognising it as a strategic nationwide trade.
“What we’re doing right here in the present day is to flag off the implementation of that concessionary pricing framework, as a result of it was needed, as you may think about, that in an financial system the place fuel is getting used for numerous functions, that it’s potential for somebody to say, I wish to make calls for of fuel for auto CNG because it’s priced decrease, after which go and use it for energy.
“So there was a possible alternative for arbitrage. So we would have liked to do it in an organised marketplace for autogas CNG, and in addition then develop {the marketplace} the place individuals can truly make demand, pay for it, get their fuel, use it, promote it into the auto CNG. As , that market has been rising tremendously within the final yr”, Oluwagbemi mentioned.
The framework additionally lays the inspiration for a regulated and environment friendly market, making certain that stakeholders throughout the worth chain from fuel suppliers to station operators and car house owners can take part transparently and sustainably.
Based on Oluwagbemi, the Nigerian auto CNG market has witnessed exponential development prior to now yr. From simply 20 CNG refueling stations nationwide, the nation now boasts over 65, with two newly inaugurated in Ibadan and one other 27–28 anticipated within the coming weeks.
“So there’s a rising market. We simply obtained the announcement by Dangote that he’s additionally including one other 100 knowledge stations to the 175 that we have now underneath building. So you may think about that we have to get this moving into an organised means”, he mentioned.
Car conversion has additionally seen a rise, he mentioned “We’ve gone from about 4,000 CNG automobiles, largely in Edo State, to over 50,000 each day customers throughout the nation. And that doesn’t embrace vans, that are being transformed at a fast tempo every single day.”
Learn additionally: Nigeria CNG initiative attract over $500m investment in 2024 PCNGI
He added that lengthy queues at CNG stations in cities like Abuja are actually a standard sight, a transparent indicator of rising demand. “It’s a superb drawback, and we’re right here to resolve it. The market gained’t be excellent from day one, however our job is to make it higher every single day,”
Trying forward, PCNGi estimates that Nigeria could have between 125,000 to 200,000 CNG automobiles on the highway by the top of 2025, aiming to hit a nationwide goal of 1 million automobiles by 2027. Whereas the PCNGi is spearheading the initiative, Oluwagbemi emphasised that the personal sector is accountable for almost all of car conversions two to a few occasions the quantity carried out by government-supported channels.
“Our function is to incentivize and allow. The federal government gained’t construct every thing, However by offering focused incentives like concessionary fuel pricing, we are able to catalyze personal funding and ship a safer vitality future for Nigerians,” he mentioned.
