The Dangote Group is undertaking an initiative to transition over 6,000 diesel trucks to Compressed Natural Gas (CNG). This will add to their 4,000 trucks that have already been converted to CNG. Michael Oluwagbemi, who is in charge of the Presidential Compressed Natural Gas Initiative Programme, shared this information in a recent video on the PCNGI’s X account
He noted that major corporations like Dangote and BUA are embracing the CNG initiative, transitioning their fleets from diesel to gas to reduce expenses.
“Dangote has recently announced plans to convert over 6,000 trucks to use cleaner fuel, in addition to the 4,000 trucks that have already made the switch. BUA, another company, is also joining this effort. With so many trucks being converted, I am hopeful that we will see between 150,000 and 250,000 conversions by the end of the year,” he said. Oluwagbemi expressed his happiness with how well the Nigerian public is responding to the new fuel initiative, adding, “I am thrilled by how Nigerians have welcomed this program. Their support is key to its success.”
CNG represents a sustainable fuel option that fosters a sense of national pride, and it’s inspiring to witness the growing enthusiasm among Nigerians for this initiative. The commitment of various government agencies in the value chain is crucial, particularly the Nigerian Automotive Development Council, which plays a vital role in overseeing conversion workshops to ensure they meet safety standards. We are actively collaborating with them to establish a robust regulatory framework for these workshops, which is now in place. Moreover, we are partnering with the Standard Organisation of Nigeria to ensure that all imported kits and cylinders comply with the highest quality standards.
We have looked closely at our global and domestic manufacturing sites to ensure they comply with SON guidelines. Throughout this process, we have forged a strong partnership with SON, collaboratively tackling safety concerns to uphold the highest levels of quality and reliability.
The Nigerian Mainstream Downstream Petroleum Regulatory Authority is collaborating with our team to improve our preparedness for the integration of data stations and fuel stations. This collaboration focuses on optimizing the licensing process to remove bureaucratic barriers and accelerate the acquisition of necessary permits. As a result, we aim to create a more conducive environment for investment opportunities in this sector.
Furthermore, the agency is actively engaging with the Ministries of Transportation and Technology to enhance training and capacity building, having successfully trained over 5,000 technicians since last year through this partnership. As I mentioned, we are an interventionist organization, a presidential initiative.
Our partnership with the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the National Gas Expansion Program and Regulatory Authority (NMDPRA) Our initiative has received strong support. Last year, we secured funding for six companies in the Compressed Natural Gas (CNG) sector. These companies are now setting up refilling stations across the country, making CNG more available to businesses and consumers.
We recently conducted a groundbreaking ceremony in Akwa Ibom State, spearheaded by Chief Timipre Sylva, the Minister of State for Gas. The event is an important step forward in our efforts to build the CNG infrastructure.
We are also collaborating closely with the Minister of Transport, the Minister of Finance, and the Minister of Information, highlighting the importance of teamwork across different levels of government. We understand that the success of this transformative program relies on more than just our efforts. It’s very important to work together with various government agencies and different ministries to reach our goals. These partnerships help us handle the challenges of putting our plans into action and make sure our projects fit with the country’s energy plans. Our goal is to establish these ties in order to enable a better future as regards sustainable energy.