The Independent Petroleum Marketers Association of Nigeria (IPMAN) has appealed to the Federal Government for financial support to convert existing petrol stations into Compressed Natural Gas (CNG) refilling centres.
Speaking at a recent event, IPMAN’s National President, Abubakar Maigandi—represented by executive member Mr. Dele Tajudin—highlighted the importance of the Presidential Compressed Natural Gas Initiative but stressed that without substantial government backing, its full potential could not be realized. Despite the government’s announcement that over 100,000 vehicles have been converted from petrol to CNG within a year, Maigandi warned that the required capital investment, structural changes, and regulatory clearances remain significant barriers.
“Converting to CNG is not a simple process,” he stated. “It requires major infrastructure changes, adherence to strict regulations, and, most critically, adequate funding. Without government intervention, most independent marketers simply can’t afford to make the transition.”
He also pointed out that most petrol stations across Nigeria were built specifically for petrol and diesel sales, not for CNG, resulting in limited access and long queues at the few existing CNG outlets. “Independent marketers have nationwide reach, especially in areas underserved by major players. We are in a strong position to lead this transition—if we get the necessary financial and technical support from the government,” he added.
At the same event in Lagos, the Programme Director and Chief Executive of the Presidential CNG Initiative, Michael Oluwagbemi, reported a dramatic increase in CNG vehicle adoption—from fewer than 4,000 vehicles to nearly 100,000 in just one year. He attributed this progress to President Bola Tinubu’s strategy to use local energy sources to cushion the effects of fuel subsidy removal.
“The President’s vision is to reduce economic pressure on Nigerians by promoting affordable and sustainable energy alternatives like natural gas,” Oluwagbemi explained.
He noted that private sector players have been instrumental in the sector’s growth, citing the Dangote Group’s rollout of 4,000 CNG trucks and over $1 billion already invested in the initiative. This includes $280 million from Dangote Group, $28 million from Arita LNG, and investments from firms like Femadec, Greenview, and Greenville.
The number of CNG conversion centres has increased from just seven to 265 in the past year, while 60 CNG refuelling stations are now operational, with another 175 under development.
Addressing safety concerns, Oluwagbemi said, “CNG is significantly safer than petrol and diesel. It is 18 times less likely to explode than petrol and eight times less likely than diesel. Most explosion incidents are either exaggerated or involve petrol-powered vehicles, not CNG.”
He also highlighted the broader economic impact of the initiative, noting reduced transportation and food costs. “In some parts of Lagos, for instance, meat prices have dropped due to livestock being transported via CNG-powered trucks,” he said.
Looking ahead, Oluwagbemi revealed that the initiative’s next phase aims to convert 250,000 more vehicles in collaboration with private operators, with support from major transport unions. “We’ve gone from 20 operational CNG stations in late 2023 to 60 today, and we plan to commission 100 more in the next three months,” he added.
Babatunde Karim, a representative of the Road Transport Employers Association of Nigeria, also endorsed the programme, citing substantial fuel savings. “We used to spend N50,000 on petrol for certain routes. With CNG, that cost has dropped to about N12,000. It’s a big relief,” he said. However, he urged the government to resolve issues related to gas pressure and supply shortages.
Responding to critics, Oluwagbemi stated, “Rome wasn’t built in a day. Those responsible for Nigeria’s fuel subsidy crisis shouldn’t be the ones questioning the pace of our recovery efforts.” He called on Nigerians to support President Tinubu’s broader energy transition and renewable energy agenda.
