The Federal Government of Nigeria has strengthened its partnership with Ekiti State by donating 15 Compressed Natural Gas (CNG) buses and launching seven conversion centers aimed at supporting the transition to cleaner energy in transportation. The CEO of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, announced the handover during a ceremony in Ado Ekiti and highlighted the Federal Government’s broader initiative to establish a CNG Industrial Park. This initiative is part of a strategic effort to modernize the transport sector and reduce reliance on traditional fuel sources by harnessing the benefits of CNG, which offers a cheaper and cleaner alternative for vehicles.
Oluwagbemi underscored the significance of the CNG sector in Nigeria, noting that it has attracted investments exceeding $175 million for the development of conversion centers, assembly plants, and refueling stations. The economic ramifications of this investment are expected to ripple through the job market, generating thousands of employment opportunities for youth and technicians across the country. Just two weeks prior, CNG buses were introduced in Abuja and Kogi State, where they resulted in a reduction of transportation fares by up to 40%, demonstrating the tangible benefits of incorporating CNG technology in urban transit systems.
The handover of the CNG buses is anticipated to yield similar economic advantages in Ekiti State, contributing to eased financial burdens on citizens reliant on public transportation. Alongside the buses, the distribution of conversion kits and the establishment of the conversion centers will enable local operators, including tricycle drivers, to switch from petrol to CNG, which Oluwagbemi claims is not just eco-friendly but also a more reliable and safe option for powering vehicles. The incorporation of clean energy into transportation aligns with the government’s objectives to stimulate both the economy and the employment landscape.
In advocating for the CNG initiative, Oluwagbemi stated that the successful transition to this greener form of fuel requires substantial financial investment, estimating an overall need of $3.5 billion to $4.5 billion, primarily from the private sector. With ongoing progress in the sector, over 10 mother stations and approximately 75 daughter stations are in development, with some located in Ekiti State. The emergence of assembly plants located in various cities, including Lagos and Ajaokuta, is also critical, as it lays the foundation for local businesses to flourish while supporting the production of vehicles and conversion kits.
The remarkable growth in the number of conversion centers—from only seven to over 125 in a single year—illustrates the rapid advancement of the sector. Additionally, Oluwagbemi reported that more than 34,000 conversion kits had been procured, with a further 70,000 on the way, driving toward a goal of one million vehicle conversions by 2027. The government is also actively providing new CNG tricycles to operational sectors, having recently distributed 2,000 units to the Ministry of Youth, with a further handover planned for the Ministry of Labour. This initiative is expected to create over 20,000 jobs across various facets of the CNG economy, highlighting its potential to significantly improve livelihoods.
During the ceremony, Ekiti State Governor Biodun Oyebanji expressed gratitude for the buses and acknowledged the efforts behind the new conversion centers. He reaffirmed the state government’s commitment to embracing CNG technology for vehicle mobility, which he believes will benefit the entire Ekiti populace. Represented by Public Utilities Commissioner Prof. Mobolaji Aluko, the governor appealed to commercial operators in Ekiti, particularly those using tricycles, encouraging them to consider the conversion of their vehicles to CNG. This call to action aims to enhance the state’s economic prospects and ensure that the community reaps the benefits of adopting renewable energy solutions for transportation.
