President Tinubu Unveils Major CNG Infrastructure Projects Nationwide
In a significant effort to bolster the country’s clean energy supply, President Bola Tinubu on Friday virtually launched four major compressed natural gas (CNG) infrastructure projects across Lagos, Abuja, and Owerri. This day of simultaneous rollouts marks a considerable expansion of clean transport infrastructure in Nigeria.
Focus on Indigenous Gas Resources
During the commissioning ceremony, President Tinubu emphasized the importance of leveraging Nigeria’s indigenous gas resources for the nation’s energy transition instead of relying on imported alternatives. He highlighted that these four projects signify a pivotal moment for clean transportation in Nigeria. According to Presidential Spokesperson Bayo Onanuga, the President reiterated that “Nigeria is a gas nation,” affirming that the country’s energy future would be developed from existing local resources.
Transformative Impact of New Infrastructure
The President remarked, “Lagos fuels the nation; if Lagos can supply our gas at competitive prices, the entire country stands to benefit.” He further pointed out that Abuja now hosts one of the most advanced CNG facilities in West Africa, exemplifying what the nation’s gas reform will translate to—from policy to practical implementation. He also announced the SPROUT program, aimed at alleviating the transport costs for students, indicating that the Federal University of Technology, Owerri (FUTO) has joined this national network.
Ministerial Support for Gas Transition
Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo underscored that these projects are crucial steps in realizing Nigeria’s Decade of Gas plan. He reiterated the government’s commitment to ensuring that domestic gas serves as the backbone of the nation’s energy transition, noting that Nigeria possesses over 210 trillion cubic feet of proven gas reserves that can significantly benefit various sectors.
Acknowledgment of Collaborative Efforts
Minister Ekpo commended the collaboration among MDGIF, Pi-CNG, EVs, and financial institutions in the rapid execution of these projects. He assured the public that the Ministry of Petroleum Resources is focused on creating a conducive regulatory and financial environment for domestic gas investment. Oluwole Adams, Executive Director of the Midstream and Downstream Gas Infrastructure Fund, echoed this sentiment, highlighting how these projects exemplify effective cooperation among stakeholders in the gas sector.
New Facilities and Their Implications for Urban Transportation
All four projects fall under the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and are part of a broader government strategy to enhance domestic gas access, cut transportation costs, and facilitate a cleaner energy transition. President Tinubu inaugurated the Portland Gas CNG Mother Station in Ojota, Lagos, with a daily capacity of 96,000 standard cubic meters, alongside accompanying facilities in Abuja. The new IBILE Oil and Gas Corporation (IOGC) CNG refueling stations aim to make clean energy more accessible to millions of Lagos residents, offering a more affordable transportation alternative and significantly reducing vehicle emissions.
Innovative CNG Facilities in Abuja and FUTO
In Abuja’s Jahi area, the President inaugurated a high-capacity CNG daughter booster station, developed in partnership with Loring Energy Limited and MDGIF. This facility stands out as the most technologically advanced in West Africa, equipped with cutting-edge dispensers and processing infrastructure. Additionally, at FUTO, the FEMADEC CNG Daughter Station and Conversion Center was launched to support the 20-University CNG Ecosystem Initiative, aiming to mitigate the economic impacts of fuel subsidy reforms on university students and faculty.
Enhanced Access to Financing for CNG Vehicles
The federal government is also fostering the transition to clean transportation through the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV). Partnerships with organizations like the Consumer Credit Corporation of Nigeria and Moniepoint Microfinance Bank will provide structured credit options for individuals looking to convert vehicles to CNG. The Credit Access for Light and Mobility (CALM) Fund will enable motorists to modify their vehicles affordably, offering loan options with competitive interest rates and manageable repayment plans.
