FG: CNG initiative attracted over $175m in private investment

The Federal Government has announced that its Compressed Natural Gas (CNG) initiative has attracted over $175 million in investments from the private sector.

The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, disclosed this at the ongoing 18th OTL Africa Downstream Energy Week in Lagos on the theme: ‘Alliance for Growth’

Verheijen, represented by her Technical Adviser on Energy, Eriye Onagoruwa, said the FG launched the Presidential CNG Initiatives specifically to create a CNG ecosystem capable of achieving Nigeria’s objective of transiting to cleaner transportation fuels and easing the impacts of the removal of fuel subsidies in Nigeria.

She stressed that the unprecedented incentives by the government attract new investment and promote diversification of Nigeria’s energy portfolio.

“The CNG initiative has so far attracted over 175 million dollars in private investment. In addition to government financing and today, Nigeria has more than 125 conversion facilities, up from seven in 2023,” she said.

She emphasised that despite the nation boasting an impressive history of over 80 years in oil and gas production, yet the current output and investment levels do not reflect the true or actual capacity.

According to her, the nation has stagnated below two million barrels per day of oil production for many years now.

She mentioned that in spite of the nation holding 38 per cent of Africa’s hydrocarbon reserves, it has able to capture just four per cent of oil and gas investment in Africa since 2016.

“The government aims to foster transparency and efficiency by introducing incentives that encourage investment in CNG, liquefied natural gas (LNG), and electric vehicle technologies. These measures will not only enhance sector growth but also make energy solutions more accessible and environmentally friendly,” she said.

Verheijen emphasised that the initiative will offer affordable, cleaner cooking options, promoting healthier households and a greener environment. According to her, expanding CNG infrastructure will also reduce reliance on traditional fuels and advance Nigeria’s global sustainability commitments.