FG to establish industrial parks for CNG vehicle kit production

The Federal Government is set to establish industrial parks to produce kits and other components currently being imported to convert vehicles to run on compressed natural gas (CNG).

It said it would vigorously pursue this project with a firm belief that the CNG revolution is a catalyst for Nigeria’s industrialization. Chief Executive Officer, Presidential Compressed Natural Gas Initiative (PCNGI), Michael Oluwagbemi, disclosed this in Lagos at a training workshop organised by the Nigeria Auto Journalists Association (NAJA).

Oluwagbemi, who was represented at the event by the Strategic Project Adviser for the PCNGI, Olayinka Rufai, in his presentation, said the government had identified several manufacturers of components required for CNG vehicle conversion showing interest in establishing their plants in Nigeria. He said: “We do not want to replace the importation of fuel with the importation of equipment.

“In the government’s ambitious mission to convert a million commercial vehicles in three years (amongst other targets), there lies an opportunity to establish local production of these conversion kits and their components.

“As such, we are in advanced stages of preparation to set up industrial parks where CNG-related equipment, materials, and components are produced.

“We have identified the central and well-suited Ajaokuta Steel Complex for the first of these parks. We have identified manufacturers of conversion kits, cylinders, and even tricycles who have all indicated interest in establishing facilities to assemble or produce from scratch.”

According to the PCNGI CEO, the initiative will drive down the demand for foreign exchange and boost the economy. Indeed, he added that it would create job opportunities for the youth, and skilled labour, and “eventually bring in foreign exchange as we begin to generate export capacity.”
Oluwagbemi stressed that Nigeria is more of a gas than an oil country, adding that the adoption of the CNG as a primary fuel source for vehicles would offer a tangible, immediate gain for all Nigerians. He said, “CNG allows us to decrease our reliance on imported fuels and build a more resilient energy future.

“By using CNG, vehicle owners will see a reduction in fuel costs of up to 50%, which is especially critical for drivers who rely on their vehicles for income and transport.

“Additionally, CNG-powered vehicles are known for significantly lower maintenance costs. Unlike petrol and diesel, CNG burns cleaner, resulting in fewer engine deposits and less frequent oil changes, ultimately extending the life of vehicle engines and reducing repair expenses.”
He disclosed the FG was determined to drive the CNG vision to achieve maximum success.
He said apart from injecting $250 million in the past 12 months, the government was also collaborating with financial institutions for easy access by motorists.