Over 50,000 Vehicles Converted To CNG In Nigeria, Says NMDPRA

… Targets 100,000 Conversion Centres In 2025

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has disclosed that about 50,000 vehicles have been converted to run on Compressed Natural Gas (CNG).

The Authority Chief Executive, Engr. Farouk Ahmed made the disclosure in a document seen by THE WHISTLER.

Ahmed said the NMDPRA has taken deliberate and proactive actions to protect and grow the oil and gas industry in line with the aspirations and provisions of the Petroleum Industry Act 2021.

He said the NMDPRA has taken necessary steps to ensure the evolution of an open and competitive market in the product supply chain.

Ahmed said the full price deregulation of the petroleum products market has enabled the creation of a level playing field that fosters healthy competition and enables investment opportunities.

Prices of Premium Motor Spirit jumped above N1,000 per litre in 2024 compared to N170 sold before the removal of fuel subsidy in May 2023.

The government, in a bid to ameliorate the hardship induced by high energy cost, developed the CNG as a viable alternative to PMS. The government took action through the establishment of the Presidencial CNG Initiative (PCNGI).

The government also mandated the Nigerian National Petroleum Company Limited (NNPC) to drive CNG penetration through massive investment

The NMDPRA boss said the Authority has supported the PCNGI, adding over the last year, the downstream regulator has “helped stimulate 186 new conversion centers increasing Nigeria’s conversion capacity by over 2500 per cent.

“These conversions alongside new buys have raised the Nigerian Gas Vehicles (NGV) population to an estimated 50,000 vehicles and trucks and it continues to grow daily.”

“With over $400m attracted for investment in 86 and 65 new daughters and mother stations under construction respectively, Nigeria’s refueling capacity has therefore risen from 20 to 56.”

He said the collaborative efforts of PCNGI, NMDPRA and Standard Organisation of Nigeria ( SON) led to the development of standards and the Nigeria Gas Vehicle Monitoring System.

According to him, the initiative is in the pilot phase and is expected to be launched in 2025.

He added, “To address the observed deficit in critical energy projects financing, the NMDPRA is supporting the establishment of Africa Energy Bank, which is expected to be a game changer in enabling investment in critical infrastructure across the continent.

“Indeed, Nigeria is poised to be the energy center for Africa, with competitive financing and favourable regulatory environment.”

He said the NMDPRA will continue to collaborate with PCNGI to ensure deployment of CNG infrastructure in major cities of Lagos and Abuja, up to 100,000 conversions.

Over 50,000 Vehicles Converted To CNG In Nigeria, Says NMDPRA is first published on The Whistler Newspaper