Though the federal government has remarkably provided support to the transportation industry with free Compressed Natural Gas (CNG) conversion kits, fresh drive shows downstream petroleum industry pulling the strings, CHIKA IZUORA, writes
Nigeria is advancing the Compressed Natural Gas (CNG) adoption by supporting vehicle conversions, infrastructure expansion, and public awareness for clean, affordable energy solutions.
Unarguably, Nigeria is leading Africa’s shift to more sustainable energy alternatives by transforming energy futures with CNG innovations, harnessing abundant gas reserves.
Nigeria, through this ambitious project joins nations like Egypt, Morocco, South Africa, Kenya, and Tanzania as pioneers in promoting the growth of CNG, which is in line with the worldwide trend towards cleaner, more efficient energy sources.
The country is uniquely positioned to spearhead the continent’s switch to CNG since it has one of Africa’s largest natural gas deposits. Nigeria may drastically lessen its reliance on conventional fossil fuels like gasoline and diesel by using its abundant natural resources. Switching to CNG is both ecologically and financially advantageous because these traditional fuels are not only more polluting but also more volatile.
There are several economic and environmental gains to using CNG as an energy source. When compared to traditional fuels, CNG emits fewer greenhouse gases, improving air quality and creating a healthier living space. Economically, lowering dependency on foreign fuels improves Nigeria’s energy security, generates employment possibilities in a number of industries, and draws significant investments in CNG infrastructure.
In addition too, including CNG in the country’s energy mix supports Nigeria’s dedication to international environmental objectives and guarantees its citizens access to reasonably priced and dependable energy.
This comprehensive strategy demonstrates how CNG has the ability to propel Nigeria’s energy revolution and sustainable development.
Through several calculated actions meant to support its shift to greener energy, Nigeria has already set the stage for the broad adoption of CNG.
The promotion of vehicle conversion projects by both public and private organisations is one noteworthy endeavor. These programs enable customers to take advantage of more affordable fueling alternatives while actively supporting environmental sustainability by making it easier for cars to switch from gasoline to CNG. This method shows how cost-effective and useful CNG is for daily use.
The federal government through the Pi-CNG programme director, Presidential Compressed Natural Gas Initiative (Pi-CNG), Mr. Michael Oluwagbemi, reiterates dedication to reducing carbon emissions, tackling urban air pollution, and creating green jobs.
Oluwagbemi, spoke passionately about this recently in Lagos, during the 2025 Fuel with CNG Diesel Retrofit Workshop, organised by Pi-CNG for stakeholders in the industry.
According to him, these targets are through the adoption of Compressed Natural Gas (CNG).
“We are not just retrofitting engines, we are reimagining Nigeria’s energy future,” Oluwagbemi declared.
He emphasised the initiative’s role in solving national problems, including reducing inflation and improving the financial wellbeing of ordinary Nigerians.
“It is also the impact on the life of the common Nigerian. More money in your pocket means that you can use money to buy, send your child to school.
“Also, treat a sick sibling in the hospital, invest in your own life, to build a house, to buy cars, right?” the programme director asked.
By introducing a “cheaper, safer, more reliable source of energy that is domestic,” the programme aims to lower energy costs.
It also allows citizens to more disposable income for education, healthcare, housing, and other investments.
Similarly, the guest speaker, Mr. Toba Omibiyi, Technical Director at Large and Grant Ltd., a construction company, affirmed the safety of CNG, countering common concerns.
He attributed public misconceptions to a lack of proper orientation and education, stressing the need to educate the public about CNG’s advantages and debunk myths, such as confusing it with Liquefied Petroleum Gas (LPG).
The workshop focused on Nigeria’s transition toward cleaner, more sustainable fuel alternatives.
It brought together high-level government officials, automotive industry leaders, environmental experts, fleet operators, and green tech innovators.
Also, discussions during the workshop included strategies for converting diesel-powered vehicles to run on CNG, which is a cleaner, cost-effective alternative expected to revolutionise Nigeria’s road transport system.
To further sustain stakeholder engagement, Pi-CNG, organised a pivotal workshop in Lagos, marking a significant step towards the country’s transition to cleaner fuel alternatives.
Stakeholders from the energy and transport sectors gathered to discuss strategies for converting diesel-powered vehicles to run on CNG, a cleaner and cost-effective alternative.
The workshop featured training sessions for auto technicians, expert-led panels on regulatory frameworks, infrastructure readiness, and financing schemes for CNG conversion projects.
Oluwagbemi, during the programme, emphasised the federal government’s commitment to reducing carbon emissions, tackling air pollution, and creating green jobs through CNG adoption.
“We are not just retrofitting engines—we are reimagining Nigeria’s energy future,” Oluwagbemi declared.
He also reiterated that when the programme started that the adoption rate was low.
Experts believes that Nigeria, being part of this larger movement in Africa, presents opportunities to collaborate with regional partners. Joint ventures, technology exchanges, and shared infrastructure investments could further accelerate the CNG transformation across the continent.
As Nigeria advances its CNG agenda, the country also recognises the importance of strengthening its energy infrastructure.
Reliable energy transmission systems are vital to integrating CNG and other renewable sources into the broader energy grid. Collaboration with international partners and investments in advanced technology will ensure Nigeria’s energy infrastructure can support its growing energy mix.
Nigeria’s initiatives to embrace CNG as a sustainable energy source demonstrate its dedication to both economic development and environmental management. Nigeria is not only meeting its energy demands but also establishing a standard for other African countries by using its natural gas deposits and enacting progressive policies. A bright future for a cleaner, greener, and wealthier Africa is indicated by the ongoing initiatives and the larger regional shift towards CNG.
Massive Deployment Of CNG Adoption In Downstream Oil And Gas Industry
With the deployment of 4,000 CNG powered trucks for the purpose of reducing petroleum products bridging cost Dangote group has further strengthened investment in the transition space.
The presidency joyfully reacted to Dangote Petroleum Refinery investment of over N720 billion to implement its landmark initiative of deploying 4,000 CNG powered trucks for the nationwide distribution of petroleum products, which is expected to save Nigerians over N1.7 trillion annually.
This bold step will see the privately-owned refinery absorb over N1.07 trillion annually in fuel distribution costs. The initiative is also poised to significantly benefit over 42 million Micro, Small and Medium Enterprises (MSMEs) by reducing energy costs and enhancing profitability.
The Presidency described the initiative as a pivotal moment in the federal government’s push to mainstream gas-powered transportation.
Commercial coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), Tosin Coker, praised the move as a strong vote of confidence in Nigeria’s gas-fueled future.
“Dangote Group’s acquisition of 4,000 CNG trucks is not only impressive in scale but also highly strategic,” he said. “It signals to the market that CNG is no longer a distant prospect but a current, practical solution to high energy costs, emissions, and supply chain challenges. PCNGI regards this as a milestone achievement in our efforts to accelerate gas-powered transport adoption.”
The Independent Petroleum Marketers Association of Nigeria (IPMAN) also commended the development, calling it a timely resolution to longstanding challenges in the downstream sector.
IPMAN’s national publicity secretary, Chinedu Ukadike, stated that the new model would significantly reduce logistical burdens for independent marketers by delivering more affordable fuel directly to filling stations.
“Our pipelines have been non-functional for years, yet nothing has been done to revive the infrastructure linking the country’s 21 depots. We’ve had to rely on expensive transport from coastal depots,” Ukadike said. “Dangote’s intervention lifts a huge burden off the shoulders of independent marketers,”he said.
Development economist and policy analyst, Professor Ken Ife, said the initiative would drive down the price of PMS and yield widespread benefits for Nigerians.
The CEO, Financial Derivatives Company, Bismarck Rewane, dismissed concerns about the refinery becoming a monopoly, arguing that inefficiencies in the sector have been systemic and long-standing. He added that the scheme would help curb the parasitic role traditionally played by middlemen.
“What Dangote is doing achieves two key objectives: delivering products across the entire country at a uniform price by eliminating bridging costs, and significantly reducing logistics expenses through the use of CNG-powered trucks to reach every corner of the nation.
“In economic terms, middlemen—who typically do not invest—are often viewed as parasitic, extracting margins simply for distributing goods. Dangote is bypassing this layer by directly handling distribution and, notably, providing credit facilities to the retail end of the business,” he said.
Energy expert and co-founder of Dairy Hills, Kelvin Emmanuel, said Dangote’s decision to absorb logistics costs marks a turning point that could finally allow Nigerians to enjoy the benefits of local refining.
Energy analyst Ibukun Phillips described the move as “revolutionary”, suggesting it could reshape Nigeria’s energy sector by improving affordability and access, particularly in rural communities.
“Rural consumers, who typically pay more despite earning less, stand to benefit immensely. This could also revive abandoned filling stations and promote equitable distribution,” she explained.
The initiative, which eliminates transportation costs for fuel marketers and large-scale consumers, is expected to help reduce pump prices and inflation. From 15 August, Dangote will begin the direct delivery of petrol and diesel to filling stations, industrial facilities, and other high-volume consumers.It aims to meet Nigeria’s daily consumption of 65 million litres of refined petroleum products. This includes 45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel.With the average logistics cost estimated at N45 per litre, the refinery will cover over N1.07trn annually in free distribution expenses.
Dangote Group is investing N720 billion in the acquisition of 4,000 CNG-powered trucks as well as the establishment of nationwide CNG ‘mother and daughter’ stations, among other infrastructure to implement the free distribution initiative.
This strategic programme forms part of Dangote’s broader commitment to eliminating logistics bottlenecks, enhancing energy efficiency, promoting environmental sustainability, and supporting Nigeria’s economic development. The company noted that lower fuel distribution costs will help reduce production costs, ease inflationary pressures, and stimulate economic growth.
The initiative is also expected to resuscitate dormant filling stations, fostering job creation in the process. Over 15,000 direct jobs are projected to be created across the logistics chain, including drivers, station managers, and attendants at the CNG stations.
The refinery also emphasised that this programme would help curb cross-border smuggling of petroleum products and support a more efficient and environmentally friendly distribution system.
Between Depleting Workforce And Declining Productivity