Grace Ashiru
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has entered into a partnership with Rolling Energy to facilitate the conversion of 100,000 vehicles to Compressed Natural Gas (CNG) within 18 months. This initiative is designed to help small and medium enterprises (SMEs) reduce operational costs while supporting Nigeria’s shift toward cleaner energy solutions.
SMEDAN’s Director-General, Dr. Charles Odii, revealed this development on Friday during the launch of a CNG Conversion and Training Centre in Abuja. He highlighted the project as a strategic effort to equip SMEs to meet evolving energy demands.
Dr. Odii further stated that the Presidential CNG Initiative (Pi-CNG) is tasked with the ambitious goal of converting approximately one million vehicles to CNG within the same 18-month timeline.
“We at SMEDAN are committed to converting 10% of those vehicles at our centers,” he stated.
Grow Nigeria Strategy
Odii highlighted that the initiative aligns seamlessly with SMEDAN’s GROW Nigeria strategy, which is designed to provide Small and Medium Enterprises (SMEs) with Guidance, Resources, Opportunities, and Workforce Support.
“By adopting Compressed Natural Gas (CNG), we are enabling SMEs to reduce operating costs while fostering sustainable energy practices. This initiative is particularly crucial as businesses navigate rising fuel prices following the removal of subsidies,” he added.
He further noted that the conversion center, which has the capacity to handle nine vehicles daily, is supported by a team of 20 skilled technicians.
Additionally, the facility doubles as a training hub for young Nigerians, offering programs in CNG conversion, maintenance, and repair. These efforts not only create new business opportunities but also equip participants with critical technical skills.
Harnessing Nigeria’s Natural Gas Resources
During the event, the Executive Vice Chairman of the Presidential CNG Initiative, Mr. Toyin Zubair, commended SMEDAN and its partners for leveraging Nigeria’s abundant natural gas reserves to drive economic development.
“Nigeria possesses one of the largest natural gas reserves in the world. Utilizing this resource domestically to power vehicles and industries will not only lower costs but also contribute to a cleaner environment,” Zubair emphasized.
Rolling Energy CEO, Mr. Mubarak Danbatta, has highlighted the affordability of Compressed Natural Gas (CNG) as a key advantage for small and medium-sized enterprises (SMEs). He emphasized that the initiative is intentionally designed to be inclusive, with a primary focus on SMEs to ensure that the benefits of the CNG conversion process are accessible to a broad audience.
“With less than N4,000, a vehicle can be fully fueled with CNG, compared to over N60,000 for petrol. This provides significant relief for businesses,” Danbatta explained.
What You Should Know
The Nigerian government has increasingly prioritized CNG initiatives to promote its adoption as an alternative to premium motor spirit, commonly referred to as petrol.
•Just a few weeks ago, the P-CNG announced that it had invested over $200 million into Nigeria’s CNG value chain.
•This initial investment was allocated to developing critical infrastructure, including the construction of mother stations, daughter stations, refueling stations, and conversion centers.
•Out of the total investment, $175 million was dedicated to the establishment of mother stations, which serve as vital distribution hubs for CNG. Furthermore, 65 new licenses were issued to support sector expansion, while 75 new daughter stations were under construction to improve accessibility nationwide.
As of December, the initiative’s total investment has grown to over $450 million, according to recent figures shared by Michael Oluwagbemi, the CEO of PCNGi.
