The Federal Government yesterday disclosed that it has reached an agreement with gas companies for the supply of an additional 20 million standard cubic feet (mscf) of gas to meet the growing demand for Compressed Natural Gas (CNG) by vehicle owners.

As part of its broader strategy, the government said it plans to convert between 125,000 and 200,000 vehicles to run on CNG by the end of this year.

Speaking at the official launch of the Mobility CNG Supply Framework in Abuja, the Programme Director and Chief Executive of the Presidential Compressed Natural Gas Initiative (PCNGI), Engr. Michael Oluwagbemi, stated that the initiative is targeting the deployment of one million CNG-powered vehicles by 2027.

He added that the federal government, in collaboration with private sector partners, is also accelerating the rollout of CNG refueling stations across the country to support this transition. According to him, “We are looking to have at least 125,000 to 200,000 vehicles on the road in addition to the one we already have running on CNG this year. We want to be on pace for one million by the end of 2027.

“If we get closer to 250,000 or 300,000 total CNG vehicle count this year, at the end of this year, we’ll have done a lot of good work. Of course, this is an estimate.”

Oluwagbemi, who noted that the private sector probably converts about twice, if not three times the number of vehicles that the PCNGI converts, noted that the government was very eager to incentivize the private sector to do the work.

“The private sector has the biggest share of the work, but we are always there to create an enabling environment, providing incentives, continue to encourage them with the right kind of targeted incentives like this concessionary gas pricing, and deliver to the Nigerian people, a more secure energy future leveraging gas.”

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