Despite the challenges facing the adoption of Compressed Natural Gas, the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, has insisted that the use of CNG will reduce the high cost of transportation.
Ekpo said Nigeria’s gas sector has witnessed significant transformation under the administration of President Bola Tinubu, expressing confidence that CNG will get to all Nigerians as an alternative to petrol and diesel.
Speaking Tuesday at the Nigerian International Energy Summit in Abuja, Ekpo highlighted the substantial progress in gas infrastructure development, policy reforms, gas utilisation, and domestic initiatives, marking a remarkable turnaround for the sector.
He said in response to the 2023 fuel subsidy removal and subsequent petrol price surge; the government initiated a nationwide CNG programme to provide cost-effective and environmentally friendly transportation alternatives.
“With over 100,000 vehicles targeted for conversion and a $200m investment in CNG infrastructure, this programme is crucial in reducing transportation costs and promoting energy sustainability,” Ekpo said.
He also commended the Nigerian National Petroleum Company Limited and private sector partners for their investments in mini liquefied natural gas projects in the country.
The partnership, he stated, has seen the establishment of five mini LNG plants—Prime LNG Plant, BUA LNG, Highland LNG, NGML/GasNexus LNG, and LNG Arete in Ajaokuta, Kogi State—all designed to accelerate Nigeria’s industrialisation, economic growth, and prosperity by taking gas from existing pipelines, liquefying it, and transporting it to far-reaching areas, especially in the Northern region.
Ekpo commended NNPCL’s Group Chief Executive Officer, Mele Kyari, for his commitment to replicating these mini LNG projects across all geopolitical zones of the country in line with President Bola Tinubu’s initiatives to drive the economy using natural gas.
“The Federal Government is attracting investment in LNG, CNG, and gas-to-chemicals, and by fostering a business-friendly environment, Nigeria is building a sustainable gas ecosystem that drives industrialisation, job creation, and energy security, ensuring a cleaner and prosperous future,” he stressed.
The gas minister reaffirmed the government’s commitment to the Decade of Gas initiative, which aims to position Nigeria as a leading gas-powered economy by 2030 through infrastructure expansion, increased domestic utilisation, and export growth.
The key projects under the initiative include pipeline development, gas-based industries, and gas-to-power initiatives.
He mentioned that the Obrikom, Obiafo, Oben, and Ajaokuta-Kaduna-Kano Gas Pipeline projects remain flagship initiatives in Nigeria’s national gas expansion drive, according to Ekpo.
The former lawmaker pointed out that the AKK pipeline, spanning 614 kilometres, is expected to enhance gas supply to key industrial and commercial hubs across Nigeria.
“With an expected completion date of 2025, this $2.8b initiative will stimulate industrialisation, create jobs, and attract investments in manufacturing and power generation,” he concluded.
Our correspondent observes that many Nigerians are reluctant to convert their vehicles to CNG due to a lack of refuelling stations.
It was also reported that since 2023, less than 60 CNG stations have been constructed nationwide.
Similarly, the free conversion of commercial buses to CNG has not shown any reduction in transport costs, as the beneficiaries still charge the same fare as their colleagues using petrol.
