Due to the lukewarmness of some states, the aggressive promotion of the Compressed Natural Gas (CNG) initiative in the last one year by the Federal Government recorded a slow down.
Another reason given for the below-expectation performance is the unavailability of gas as a result of which the Southeast and the Northeast geo-political zones failed to key into the plan.
Only 23 out of the 36 states have joined the CNG revolution, upscaled by the Bola Ahmed Tinubu Administration, following his “fuel subsidy is gone” pronouncement at inauguration on May 29 last year.
Despite the hiccups, the Presidential Initiative on Compressed Natural Gas Initiative (Pi-CNG) has been able to distribute 150,000 kits and achieved the conversion of 50,000 vehicles from petrol usage to CNG. This is up from the availability of only 2,000 kits and conversion of 4,000 vehicles last year.
The CNG is designed as an alternative to petrol use, following the increase in the pump price of petrol subsidy payment payment. Besides, CNG is a cleaner energy.
Pi-CNG Programme Director, Michael Olugbemi, said: “President Tinubu’s singular policy of eliminating subsidies on petrol made CNG a much more viable alternative since it is 70-90% cheaper, cleaner, safer and more reliable”.
The rapid CNG Initiative, which has attracted about $450 million may lead to an investment drive of about $3 billion in 2027.
But out of the six geopolitical zones, the CNG’s Conversion Incentive Programme (CIP) has been embraced in the Northcentral and Southwest, with growing acceptance in the Northwest and Southsouth.
There are plans to extend the CIP to Northeast and Southeast next year with gas prospects in the affected zones.
