FG’s Compressed Natural Gas (CNG) Project Faces Breakdown Over Infrastructure Gaps
Date: 14 May 2025 By: IDNN Energy Desk
The much-hyped Presidential CNG Initiative has hit a major roadblock, with energy marketers warning that poor infrastructure and bureaucratic delays are sabotaging the program’s rollout.
Mike Osatuyi, former National Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), declared the initiative “has not taken off meaningfully” since its launch, despite government incentives and media hype.
Long Queues, Empty Stations, Unfulfilled Promises
Osatuyi told NAN that cities like Lagos and Abuja are experiencing long queues at CNG stations due to a shortage of:
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Refueling stations
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Conversion centres
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Trained technicians
Hotspots like Zuba-Kubwa Road, Airport Road, Ibafon, and Ibadan Tollgate have become epicenters of commuter frustration.
He lamented that the plan to introduce 200,000 CNG-powered vehicles is stagnating. “If we had started 20 years ago, petrol consumption would have reduced by 50%,” Osatuyi noted.
“Drop the Top-Down Model — Let IPMAN Join”
Osatuyi advocated a decentralised approach:
“Instead of building new stations from scratch, empower existing IPMAN stations to offer CNG and petrol side-by-side. That will drastically reduce cost and boost access.”
He also criticised the current budget as “too timid” and called on FG to back words with massive investment. Despite the appointment of a Gas Minister and creation of the Presidential Initiative on CNG (Pi-CNG), led by FIRS Chairman Zacch Adedeji, progress has been limited.
CNG: Clean, Cheaper, But Still Out of Reach
CNG promises:
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Lower fuel costs
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Reduced emissions
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Safer combustion than petrol
Yet it remains out of reach for most Nigerians due to: -
High vehicle conversion costs
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Lack of awareness
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Weak enforcement of policy
Governor Dapo Abiodun of Ogun State recently said cost remains a major deterrent for conversion and industrial use.
Call to Action: From Promise to Progress
The Federal Government activated its conversion scheme in 2024 across 8 states — including Lagos, Oyo, Ogun, Edo, Delta, FCT, Kogi, and Nasarawa — with limited uptake.
In March, it launched a ₦2.5 billion credit scheme to incentivize conversions and local kit production. But experts now insist on:
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Accelerated infrastructure investment
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Stakeholder inclusion (IPMAN, unions, private operators)
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Transparent rollout targets