Nigeria Aims for $4.4 Billion Annual Savings by Replacing 20% of Petrol with Compressed Natural Gas



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In a strategic move to boost domestic gas supply, the Federal Government’s Presidential Initiative on Compressed Natural Gas (PCNGi) aims to convert approximately one million vehicles to Compressed Natural Gas (CNG). This initiative is expected to save Nigeria about $4.4 billion annually in petrol importation costs.

PCNGi has projected that an investment of around $890 million will be necessary to develop the infrastructure needed for this alternative fuel. During a presentation at a Co-Creation Session on the Nigeria Gas Vehicle Monitoring System (NGVMS) in Abuja, Engr. Zayyan Tambari, the Coordinator of Regulations, Compliance, and Facilitation for PCNGi, highlighted the government’s goal to replace 20 percent of the current daily petrol consumption of 50 million litres with CNG.

Hon. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), emphasized the government’s commitment to maximizing the benefits of Nigeria’s gas resources. Represented by Engr. Abel Nsa, Mr. Ekpo underscored the importance of ensuring safe usage of CNG in vehicles, requiring specific materials and tools across the value chain.

“We need to address safety issues in the use of CNG. Education and specific tools and materials are essential as we transition,” Ekpo stated. He drew parallels to the economic impact of mobile phone adoption during President Obasanjo’s tenure, suggesting a similar transformative potential for CNG.

Engr. Ogbugo Ukoha, Executive Director of Distribution System, Storage, and Retailing Infrastructure at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), revealed that the agency has gazetted two regulations focused on the technical framework and specifications for developing gas retailing infrastructures and fuel quality standards.

Ukoha also mentioned that NMDPRA is encouraging petrol station owners to install CNG dispensing points. Additionally, new licenses for petrol stations will now require CNG dispensing facilities.

“The Authority is also engaging stakeholders to mandate the conversion of fuel trucks and fleet owners to CNG, given the high cost of diesel,” Ukoha added.

This initiative aligns with the government’s broader strategy to ensure Nigeria reaps the full economic benefits of its abundant gas resources while promoting a cleaner, more sustainable fuel option.

Gbenga Samson
Gbenga Samson
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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