The Federal Government of Nigeria is targeting $1 billion in annual investments to expand Compressed Natural Gas (CNG) conversion projects across the country.

This ambitious goal was revealed by Michael Oluwagbemi, Programme Director of the Presidential Compressed Natural Gas Initiative (PCNGi), during the launch of a new CNG Conversion Centre at Mile 2 commercial parks in Lagos.

Oluwagbemi highlighted the strong progress so far, stating, “In the last one year, over $500 million has already been invested in the CNG space. We are on track for $1 billion this year.”

He emphasized the initiative’s nationwide reach, adding, “The programme is not only focused on southern Nigeria but is making deliberate investments to extend CNG access to northern Nigeria, to reduce food transport costs and stabilize prices nationwide.”

Noting the importance of private sector involvement, he compared the current phase of CNG infrastructure development to Nigeria’s early GSM rollout, saying, “We didn’t always have mobile towers everywhere. But we made progress because of private investment; and that’s what’s happening with CNG today.”

At the event, Lagos State Secretary of the National Union of Road Transport Workers (NURTW), Usman Teslim, praised the government’s efforts.

He said, “This new model is a relief to drivers. Instead of leaving their vehicles parked for days, they can now complete conversions in three to four hours after work.”Teslim also noted the positive impact on transportation costs: “PCNG-branded buses now offer a 50 percent reduction in fares.

These buses are not just symbols of change; they are delivering real economic relief at our motor parks.”With growing investments from major players such as Greenville, NIPCO, AYM Shafa, Femadec Energy, and government funds, the CNG initiative is set to revolutionize commercial transport and energy usage in Nigeria.