FG tasks states on investment in CNG… highlights benefits

The Federal Government (FG) has called on state governments to invest in the development of Compressed Natural Gas (CNG) infrastructure.

The Programme Director of the Presidential Compressed Natural Gas Initiative, Michael Oluwagbemi, made the call on Saturday during a press conference in Abuja.

The call is sequel to the critical role states must play in actualising President Bola Tinubu’s energy transition agenda.

He stressed that state governments, being direct beneficiaries of revenue from improved transportation and energy policies, should lead by example in investing in CNG infrastructure.

“I cannot emphasise enough the role of states in the energy transition programme of Mr. President. Ultimately, states own transportation policies and the Federal Government can only encourage states to switch to energy-efficient vehicles and invest in infrastructure like pipelines,” Oluwagbemi said.

He noted that states was in charge of most of the regulations bordering transportation activities and by investing in energy transition programmes, they were in the position to benefit from increased revenue distributions.

“When it comes to the regulation of transportation activities, it is the responsibility of states and state governments are the number one beneficiaries of an increase in the distribution of revenue. Since they are the most significant beneficiaries, they should invest in it,” he said.

Oluwagbemi called on states to encourage private individuals, including civil servants, to convert their petrol-powered vehicles to CNG and to make direct investments in the dispensing of the product.

“States should encourage private individuals, including their civil servants, to convert their vehicles to CNG. They can also have direct investments in dispensing the product,” he added.

Oluwagbemi explained the government’s assiduous efforts to strategically expand CNG infrastructure across major transit corridors, with a view to ensuring that majority of Nigerians benefit from the energy switch benefits.

He highlighted three key routes—Calabar to Benin, Lagos to Kano, and Lagos to Benin via Lokoja—as critical zones for the rollout of CNG infrastructure.

“We are making sure that the investment is going to the corridor with the most users. Ninety per cent of Nigerians ply three major transit corridors: The Calabar to Benin transit corridor; the Lagos to Kano transit corridor; and the Lagos-Benin-Lokoja corridor,” Oluwagbemi noted.

He also explained that providing CNG refuelling stations along these corridors would significantly reduce transportation costs and the overall cost of goods, particularly food.

“When we do that, there will be a reduction in the cost of food,” he said.