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FG’s CNG Programme Reduces Fuel Costs By 40%, Converts One-Third Of Targeted Vehicles

Victor Okebunmi by Victor Okebunmi
May 19, 2025
in Featured, News
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FG’s CNG Programme Reduces Fuel Costs By 40%, Converts One-Third Of Targeted Vehicles
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The Federal Government has so far converted 33% of the targeted one million commercial vehicles from petrol to Compressed Natural Gas (CNG) under the Presidential CNG Initiative, Programme Director/Chief Executive, *Engr. Michael Oluwagbemi* disclosed over the weekend.

Oluwagbemi made this known while addressing participants at the Renewed Hope Global Virtual Town Hall Conference, a weekly civic engagement platform designed to connect Nigerians at home and abroad with key government policies and initiatives under President Bola Ahmed Tinubu’s Renewed Hope Agenda.

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He explained that the CNG initiative, which officially took off in August 2023, represents a significant shift in Nigeria’s energy mix. It aims to reduce fuel costs by 40%, cut emissions, and improve energy security. *So far, over 250 conversion centres have been licensed, 10,000 technicians trained, and about $500 million in investments have been attracted.*

According to him, the Federal Government actively encourages local content that aligns with the Nigeria First Policy by supporting CNG vehicle production in Enugu and Onitsha. Plans are also underway to expand CNG infrastructure across all six geopolitical zones and roll out locally manufactured CNG-powered tricycles.

To ensure public safety, he revealed that all CNG cylinders are fitted with safety valves and advised Nigerians to work only with licensed operators.

Director-General of the Energy Commission of Nigeria (ECN), *Dr. Mustapha Abdullahi*, who joined the session en route to the airport, lauded the Presidential CNG team and the Renewed Hope Town Hall initiative. He described Oluwagbemi’s presentation as “clear, practical, and inspiring.” He pledged that his agency would continue to support the CNG transition in alignment with the national energy strategy as a strategic departure from past policy failures. Participants noted that the programme presents an opportunity to reduce fuel costs, boost local manufacturing, and reduce carbon emissions. Calls were also made for stronger awareness campaigns on CNG safety, wider access to conversion centres, and support for innovations that can extend the use of CNG to rural equipment and machinery.

The conference convener, *Amb. Joseph Kolawole Adebola, MINIM, MCICN*, commended Engr. Oluwagbemi for clarifying the CNG policy and described the session as both enlightening and timely. He urged Nigerians at home and in the Diaspora to seize the emerging opportunities within the initiative, noting that the Town Hall serves as a forum for engagement and a platform for policy suggestions and transformative ideas that can shape the nation’s future.

The Renewed Hope Global Virtual Town Hall Conference is held every Saturday and is streamed on various platforms, including YouTube, TikTok, and Instagram.

 

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