Marketers Call for Government Funding to Establish CNG Centres

The Independent Petroleum Marketers Association of Nigeria (IPMAN) is calling on the Federal Government to provide financial support for converting existing petrol stations into Compressed Natural Gas (CNG) refilling centres. The association believes that while the Presidential Compressed Natural Gas Initiative holds strong potential, it cannot be successfully expanded without substantial backing from the government.

During a recent event, IPMAN‘s National President, Abubakar Maigandi, represented by Mr. Dele Tajudin, an executive member, explained that transitioning petrol stations to accommodate CNG facilities requires significant investment, structural changes, and regulatory clearance, which are currently unavailable to most marketers.

Maigandi emphasized that installing CNG infrastructure is not a straightforward task. It involves complex modifications, adherence to regulatory standards, and adequate funding. Without financial intervention from the government, many independent marketers would be unable to make the transition.

He also highlighted that most petrol stations were originally built to sell petrol and diesel, not CNG. As a result, the lack of appropriate infrastructure has caused long queues and made access difficult for motorists. Maigandi noted that independent marketers are present in nearly every part of Nigeria, particularly in areas underserved by major marketers. He added that with the right financing and technical support from the government, these marketers are in a good position to help drive the transition to CNG.

Meanwhile, the Programme Director and Chief Executive of the Presidential CNG Initiative, Michael Oluwagbemi, announced that the number of CNG vehicles in Nigeria had surged from fewer than 4,000 to almost 100,000 within one year. Speaking at a sensitisation workshop in Lagos, he said the government had made notable strides in promoting alternative fuel use to reduce the impact of subsidy removal.

According to him, the President’s goal was to ease pressure on citizens by using domestic energy sources such as natural gas to establish a more cost-effective and sustainable transportation system. He mentioned that several private sector players, including the Dangote Group, had shown strong support for the programme.

The Dangote Group has deployed 4,000 CNG trucks and contributed significantly to the over one billion dollars invested in the sector so far. This includes $280 million from Dangote, $28 million from Arita LNG, and funding from stakeholders such as Femadec, Greenview, and Greenville.

Oluwagbemi reported that the number of CNG conversion centres had increased from seven to 265 in a year. Currently, 60 CNG refuelling stations are operational, with an additional 175 under construction. Addressing public safety concerns, he noted that CNG is significantly less explosive than petrol and diesel. He pointed out that most explosion incidents are exaggerated or involve vehicles powered by petrol rather than CNG.

He said the broader objective of the initiative is to reduce transportation and food costs while improving household income. In Lagos, for example, the cost of meat has dropped in some areas due to livestock being transported with CNG trucks. Oluwagbemi explained that when transport costs decrease, food prices tend to follow.

He also revealed that the next phase of the initiative would aim to convert 250,000 vehicles in collaboration with private operators. The programme is receiving strong support from major transport unions. Currently, 60 CNG stations are operational, up from just 20 in late 2023. The plan is to commission another 100 stations within the next three months.

An official from the Road Transport Employers Association of Nigeria, Babatunde Karim, acknowledged the benefits of the programme. He shared that before CNG, a particular route would cost around N50,000 in petrol, but now only requires about N12,000 with CNG. He described this reduction as a major relief and evidence that the government is on the right path.

However, Karim also pointed out persistent challenges such as low gas pressure and supply shortages at some stations, which he said require urgent government intervention. Responding to such concerns, Oluwagbemi defended the pace of the programme’s rollout.

He said that meaningful transformation takes time and that critics who contributed to the country’s subsidy crisis should not rush to judge the government’s efforts.

He concluded by encouraging Nigerians to support President Bola Tinubu’s broader energy transition and renewable energy goals.