The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced a staggering 2,500% increase in the country’s Compressed Natural Gas (CNG) conversion capacity for the year 2024. This remarkable boost was revealed by NMDPRA’s Chief Executive Officer, Farouk Ahmed, during the inaugural Petroleum Industry Stakeholders’ Forum held on Thursday in Abuja.
To support this ambitious expansion, NMDPRA has established 186 new conversion centers across the country. Ahmed attributed this growth to the ongoing Presidential Compressed Natural Gas Initiative (PCNGI), which aims to promote CNG as a viable alternative to petrol. As a result of these efforts, the population of Nigerian Gas Vehicles (NGVs) is expected to rise significantly, with current estimates suggesting that there are already between 30,000 and 50,000 CNG vehicles and trucks on the roads.
Ahmed expressed optimism about the future of CNG in Nigeria, stating, “We will continue to collaborate with the PCNGI to ensure the deployment of CNG infrastructure in major cities like Lagos and Abuja, targeting up to 100,000 conversions.” This initiative not only aims to increase CNG vehicle numbers but also seeks to improve air quality and reduce dependence on traditional fuels.
The NMDPRA has attracted over $400 million in investments for the development of CNG infrastructure, including 86 new daughter stations and 65 mother stations currently under construction. The refueling capacity for CNG has also seen a significant rise, moving from 20 to 56 stations.
In addition to expanding infrastructure, Ahmed announced plans to launch an NGV Monitoring System this year in collaboration with the Standards Organisation of Nigeria (SON). This system is designed to ensure that CNG growth is managed safely and sustainably.
Despite these positive developments, Ahmed acknowledged several challenges that could hinder the spread of CNG in Nigeria. These include issues related to licensing and permits for petroleum handling facilities, as well as a lack of cooperation among some industry operators. He urged stakeholders to adhere to regulatory requirements focused on safety and efficiency.
As Nigeria moves into 2025, Ahmed emphasized the NMDPRA’s commitment to enhancing regulatory oversight and improving product quality analysis through upgraded laboratories and better inter-agency collaboration.
The Nigerian government is also taking steps to encourage the adoption of CNG vehicles. The National Automotive Design and Development Council (NADDC) has pledged to address infrastructure gaps that currently limit CNG vehicle usage.
Additionally, import tariffs on CNG equipment have been waived to further stimulate growth in this sector.
With these initiatives in place, Nigeria is poised for a significant transformation in its energy landscape as it embraces cleaner alternatives like Compressed Natural Gas.
