The former National Secretary of the Independent Petroleum Marketers, Mr. Mike Osatuyi, Association of Nigeria (IPMAN), revealed that the Federal Government’s Presidential Compressed Natural Gas (CNG) initiative is struggling due to poor infrastructure.
This was made known during an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos.
Osatuyi expressed disappointment that nearly two years after its launch, the CNG programme has yet to take off meaningfully.
“Mr Mike Osatuyi, former National Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), says the Federal Government’s Presidential Compressed Natural Gas (CNG) initiative has stalled due to inadequate infrastructure.
“Osatuyi, in an interview with NAN on Wednesday in Lagos, noted that the persistent infrastructure gaps had led to growing queues at CNG stations in cities like Lagos and Abuja,” the source read in part.
He said the shortage of refuelling stations and conversion centres is causing long queues in cities like Lagos and Abuja, especially along Zuba-Kubwa Road, Airport Road, Ibafon, and the Ibadan Tollgate.
IPMAN’s Former Secretary commended the current administration’s push for CNG as a patriotic move but criticised the slow implementation, noting that Nigeria could have reduced petrol use by up to 50% if the initiative had started 20 years ago.
He highlighted CNG’s benefits, including affordability, cleaner emissions, lower transport costs, and improved safety. While acknowledging steps like appointing a Minister of Gas and forming the Pi-CNG led by FIRS Chairman Zacch Adedeji, he noted these efforts have yet to yield significant progress.
According to Osatuyi, the plan to introduce 200,000 CNG-powered buses and tricycles is being hindered by the lack of basic infrastructure.
He argued that the current budget for the initiative does not reflect the urgency of the transition, especially with the rising number of Nigerians interested in converting their vehicles.
Osatuyi urged the government to drop the top-down approach and instead involve more industry stakeholders to prevent what he called a “monopoly of knowledge.”
He recommended allowing existing IPMAN filling stations to offer both petrol and CNG, which would reduce costs, instead of building new stations from scratch.
He stressed that for the CNG initiative to succeed, it requires strong policies, significant infrastructure investment, and extensive industry collaboration.
What you should know
In 2024, the Federal Government activated its Compressed Natural Gas (CNG) Conversion Incentive Program in eight states, which were Oyo, Lagos, Ogun, Edo, Delta, Kogi, the Federal Capital Territory (FCT), and Nasarawa, as reported by Nairametrics.
- Despite CNG’s environmental benefits, the Governor of Ogun State, Dapo Abiodun, expressed concern that the high cost of converting vehicles and machinery to CNG is hindering its widespread adoption in Nigeria.
- In March, the Nigerian Federal Government launched a N2.5 billion credit scheme to promote vehicle conversions to Compressed Natural Gas (CNG) and support local production of conversion kits, aiming to reduce energy and transportation costs nationwide.