Iroghama Ogbeifun, Chief Executive Officer , Starz Investment Company Ltd and Engr. Tari Mayor-Bright, Sovereign & Subnational Coordinator of Pi-CNG during the panel discussion themed “From Policy to Practice: Strengthening Domestication for Economic Development” at the 13th Practical Nigerian Content Forum
The Presidential Committee on Compressed Natural Gas Initiative (Pi-CNG) has announced a dramatic increase in the number of CNG vehicle conversion centers in Nigeria, growing from just seven in 2023 to 158 in 2024. The committee aims to establish up to 1,000 centers nationwide to promote cleaner and more affordable energy solutions.
Engr. Michael Oluwagbemi, Programme Director and Chief Executive of Pi-CNG, shared these updates during a panel session titled “From Policy to Practice: Strengthening Domestication for Economic Development” at the 13th Practical Nigerian Content Forum in Bayelsa. Represented by Engr. Tari Mayor-Bright, Sovereign & Subnational Coordinator of Pi-CNG, Oluwagbemi outlined the initiative’s progress, goals, and opportunities for stakeholders.
Scaling Infrastructure and Driving Market Growth
Oluwagbemi emphasized that the increased number of conversion centers is pivotal to transitioning petrol-powered vehicles to compressed natural gas (CNG). “With a minimum conversion cost of ₦1,000,000 per vehicle and a target of five million conversions, this represents a market opportunity of approximately ₦5 trillion,” he stated.
He further revealed plans to establish a CNG manufacturing hub in Ajaokuta, Kogi State, where 10 hectares of land have been secured near the Ajaokuta Steel Mill. The hub will focus on producing essential CNG kit components, such as flexible pipes, filters, and valves, while leveraging partnerships for knowledge transfer to achieve local production of more advanced components like the Electronic Control Unit (ECU).
To ensure market sustainability, Pi-CNG is working with the Nigerian Content Development and Monitoring Board (NCDMB) to develop the Ajaokuta hub under the Nigeria Oil and Gas Park Scheme (NOGaPS) and attract private investment through collaborations with entities like InfraCorp.
Building Local Capacity
Oluwagbemi highlighted the importance of skill development and capacity building, noting that Pi-CNG currently operates 100 training centers and plans to expand to 1,000 nationwide. “We are collaborating with the Nigerian Institute of Transport Technology (NITT) to certify trainees and equip local mechanics with the skills needed for CNG conversions and maintenance,” he added.
The initiative also encourages entrepreneurs to establish CNG maintenance and conversion stations, offering five-year service contracts to vehicle owners as an additional business opportunity.
Addressing Growing Demand and Fueling Infrastructure
The growing demand for CNG refueling stations was underscored by reports of queues at existing facilities. Oluwagbemi explained that while setting up a standard CNG station costs approximately $600,000, the introduction of composite refueling units (CNG-in-a-box technology) offers a cost-effective and efficient alternative.
“These portable units, inspired by models used in India, are now being deployed in Nigeria, providing faster refueling capabilities and a streamlined supply chain,” he said. Pi-CNG is also collaborating with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure widespread deployment of these units, with opportunities for investors to co-locate them at existing refueling stations.
Enhancing the Value Chain
To strengthen the midstream CNG value chain, Pi-CNG is promoting the integration of compression facilities with refueling units and positioning mother stations near gas supply sources. This strategy aims to incentivize upstream gas producers to boost output and participate in the growing CNG market.
Oluwagbemi also announced that Pi-CNG is exploring mini-LNG solutions in preparation for the completion of the AKK pipeline. “We have entered an equity agreement with a company in Ajaokuta to develop a mini-LNG facility, supported by the Bank of Industry and NMDPRA, with approvals currently underway,” he concluded.
A Growing Opportunity
Oluwagbemi expressed optimism about the future of CNG adoption in Nigeria. “The market dynamics are shifting positively, attracting interest from upstream gas producers, midstream operators, and independent station owners. Despite initial challenges, the interplay within the CNG value chain is unlocking opportunities for all stakeholders.”
With its ambitious targets, Pi-CNG is driving Nigeria toward a cleaner energy future while creating significant opportunities for local businesses, entrepreneurs, and investors.
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