Get Guardian on Google… Jigawa’s two million farmers identified as potential beneficiaries
The Federal Government is considering the deployment of mobile Compressed Natural Gas (CNG) stations in rural communities to expand access to cheaper energy and reduce production costs for farmers, particularly those dependent on fuel-powered irrigation systems.
The Chairman and Chief Executive Officer of the Presidential CNG Initiative and Electric Vehicles (Pi-CNG & EV), Ismaeel Ahmed, disclosed this at an Abuja roundtable on Promise to Proof: The Renewed Hope Conversation, organised by the All Progressives Congress (APC) and the Progressive Strategy Roundtable.
Ahmed said the proposed mobile facilities would serve remote communities where the establishment of permanent CNG refuelling stations might not be commercially attractive to private investors.
He explained that consultations with state governments, particularly in northern Nigeria, had revealed growing demand for CNG beyond the transportation sector, with farmers increasingly exploring gas-powered irrigation as a cheaper alternative to petrol and diesel.
According to him, the initiative is considering ways to make CNG readily available to farmers who want to reduce the cost of agricultural production through the adoption of gas-powered mechanical pumps.
Citing Jigawa State as an example, Ahmed said the governor had informed the initiative that the state had more than two million farmers who could benefit from affordable energy for irrigation.
He noted that mechanical irrigation pumps could cover approximately three hectares of farmland, compared with solar-powered alternatives, which typically serve about one hectare.
Although acknowledging the growing adoption of solar-powered irrigation, he said some farmers preferred mechanical pumps because of their wider coverage and operational capacity.
Ahmed said President Bola Tinubu had authorised the initiative to intensify its activities as part of efforts to expand the country’s gas infrastructure and accelerate the transition to cheaper and cleaner energy alternatives.
However, he identified inadequate gas supply and delays in securing licences for CNG refuelling facilities as major obstacles to the programme’s expansion.
He appealed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to streamline and accelerate the licensing process for investors willing to establish CNG stations.
While acknowledging the need for stringent safety standards in gas infrastructure development, Ahmed urged the regulator to balance safety requirements with the urgency of expanding the programme.
He disclosed that the CNG initiative had recorded approximately 143,000 vehicle conversions, with investments estimated at $2.6 billion.
The disclosure formed part of broader discussions on energy affordability, rural electrification, fuel security and infrastructure development at the roundtable.
In a presentation on rural electricity access, the Managing Director of the Rural Electrification Agency (REA), Dr Abba Abubakar Aliyu, highlighted electricity-access gaps, national mapping, least-cost electrification planning and the deployment of mini-grids and captive power projects.
Participants were informed of plans to deploy 1,350 mini-grids under a $750 million project aimed at extending electricity access to underserved communities.
Also speaking, the representative of the Niger Delta Power Holding Company (NDPHC), Abdullahi Kassim, said the company operated 10 power plants with a combined generation capacity of 4,000 megawatts.
He outlined the company’s investments in transmission and distribution infrastructure, industrial power initiatives, solar deployments and community development projects.
The Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr Musiliu Oseni, addressed concerns over electricity tariffs, affordability and service delivery, explaining the relationship between customer tariff bands and the hours of electricity supply.
Oseni said the estimated cost of electricity was about N200 per kilowatt-hour, while the commission was pursuing measures to improve supply through investments in generation, mini-grids, debt recovery and net billing.
He also disclosed that installed electricity generation capacity had increased by approximately 780 megawatts, while acknowledging that overall service delivery remained below expectations, despite improvements in electricity supply to Band A customers.
On fuel availability and energy security, the representative of the NMDPRA, Dr Mustapha Lamorde, outlined the regulatory framework governing petroleum supply, domestic refining, product pricing and strategic reserves.
He said efforts were underway to strengthen fuel availability monitoring, with a 30-day supply-monitoring target and a longer-term ambition to establish strategic reserves capable of sustaining the country for up to 90 days.
The meeting was also informed that the Port Harcourt, Warri and Kaduna refineries, with a combined installed capacity of about 445,000 barrels per day, remained shut down, while the government was engaging international technical experts to address challenges affecting their operations.
Lamorde further disclosed that more than 26 refineries had been licensed across the country, adding that a pre-start-up safety review had recently been conducted for the 30,000-barrel-per-day Brenco refinery, which is expected to commence operations soon.
On product quality assurance, he said two modernised laboratories had recently been completed, with another expected to be commissioned before the end of the year.
The roundtable also examined prospects for local electric vehicle assembly, battery manufacturing and solar panel production.
Responding to questions on electric mobility, Ahmed said lithium development was being handled by the Ministry of Solid Minerals Development, while the Federal Government was interested in promoting local battery manufacturing, vehicle assembly and electric vehicle production.
Other issues raised included historical electricity generation capacity, additional refinery investments, diaspora participation in the energy sector and complaints against electricity distribution companies.
Addressing concerns over mass electricity disconnections, Oseni said such practices were prohibited under the regulatory framework, urging consumers to use established complaint channels to seek redress.
He also discussed possible compensation arrangements for customers who independently finance improvements to electricity distribution infrastructure.
