Nigeria’s Compressed Natural Gas (CNG) conversion initiative has seen a remarkable surge, with the number of conversion centres increasing to 158 in 2024, up from just seven in 2023 a staggering rise of over 2,000 percent.
Programme Director and Chief Executive of the Presidential Committee on Compressed Natural Gas Initiative (Pi-CNG) Michael Oluwagbemi, shared this development during a panel discussion at the 13th Practical Nigerian Content Forum in Bayelsa state. He revealed plans to further expand the number of conversion centres to 1,000 in response to the growing demand for CNG-powered vehicles.
Oluwagbemi explained that the aim of expanding these centres is to help convert petrol-powered vehicles to CNG vehicles, creating a sustainable market for CNG stations across the country. He emphasized the significant market potential, estimating that converting five million vehicles would represent a ₦5 trillion market opportunity, with conversion costs, including kits and services, estimated at ₦1 million per vehicle.
In addition, Pi-CNG plans to set up a manufacturing hub for CNG equipment in Ajaokuta, Kogi State, where 10 hectares of land have already been secured. This hub will produce key components for conversion kits, such as flexible pipes, filters, and valves, and could even develop the Electronic Control Unit (ECU) through reverse engineering.
Oluwagbemi also called for collaboration with the Nigerian Content Development and Monitoring Board (NCDMB) to establish the Ajaokuta CNG hub under the Nigeria Oil and Gas Park Scheme (NOGaPS). The initiative also aims to convert 500,000 commercial vehicles and build 1,000 training institutes nationwide to enhance capacity building for CNG maintenance and conversion.
With the growing popularity of CNG vehicles, Pi-CNG is also seeing increased interest from independent filling station owners, many of whom are retrofitting their facilities to accommodate CNG refueling stations. The cost of setting up these refueling stations, which was initially around $600,000, is being reduced with the introduction of composite refueling units portable, fast-refueling systems inspired by Indian technologies.
Oluwagbemi disclosed plans to create a seamless CNG value chain by pairing CNG refueling units with compression facilities and drawing in upstream gas producers and midstream operators. He also shared that Pi-CNG is developing a mini-LNG facility in Ajaokuta, in collaboration with the Bank of Industry and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), with approvals currently underway.
