The Kano State Investment Promotion Agency (KANINVEST) has signed a Memorandum of Understanding (MoU) with STATA Power Utility Nigeria Limited for the implementation of a customised gas programme in the state.

Speaking at the MoU signing ceremony on Friday, the Director General of KANINVEST, Muhammad Nazir Halliru, described the $5 million project as a significant milestone aimed at reducing greenhouse gas emissions, creating a cleaner environment, and generating employment opportunities for the state’s youth.

According to him, the programme, when actualised, will involve the supply of Compressed Natural Gas (CNG) and the conversion of vehicles from petroleum-based fuel to CNG.

He noted that the initiative addresses the high cost of petroleum products and their impact on commercial transportation, adding, “This reflects the vision of this administration to create a more conducive environment by reducing greenhouse gas emissions, improving public health, and creating jobs.”
Halliru further explained that the gas supply would extend beyond vehicles to industries and major companies in the state, enhancing production and services.

The Director General revealed that implementation is expected to commence within six months after STATA Power Utility Nigeria Limited establishes gas stations in the state.

“We have secured the approval of His Excellency, the Executive Governor, for this substantial investment. We anticipate implementation to begin within the next six months as the company sets up its facilities at approved locations,” he said.

He added that the project would also enjoy tax incentives as part of the state government’s commitment to supporting pioneer investments.

The Chief Executive Officer of STATA Power Utility Nigeria Limited, Salman Dantata, expressed enthusiasm about the partnership, describing it as “groundbreaking” and aligned with global trends toward cleaner energy and environmental sustainability.

“This initiative seeks to reduce transportation costs, improve air quality, lower carbon emissions, and enhance energy efficiency across Kano State by transitioning from traditional fuel sources to CNG for automobiles,” Dantata stated.

He revealed that STATA’s total investment in the project could rise to $15 million over the next two years, covering the establishment of Liquefied and Compressed Natural Gas (LCNG) stations across the state. The firm also plans to provide conversion kits and set up conversion centres at the stations.

Additionally, Dantata announced plans to introduce 5,000 solar-powered tricycles and 10 motor vehicles for commercial purposes within the next year.

The mother station, with a capacity of 110 metric tonnes per day, will be situated in the Tamburawa area of Kura Local Government Area. Sister stations, each with a capacity of 2 metric tonnes, will be located in areas including Dalladi Nasidi, Maiduguri Road, IBB Road, Shagari Quarters, Cotton Gingery, Sharada, and Bechi Quarters.

Dantata disclosed plans to expand the project to 20 stations within five years, projecting the creation of over 300 direct and 5,000 indirect jobs for Kano’s youth.