By Adedapo Adesanya
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) is collaborating with Rolling Energy to convert 100,000 vehicles to Compressed Natural Gas (CNG) in 18 months as part of efforts to support small businesses struggling to navigate the tough operating environment.
The Director-General of SMEDAN, Mr Charles Odii, disclosed this at the unveiling of a CNG Conversion and Training Centre in Abuja, noting that another partner is Pi-CNG.
“This new centre is designed to convert vehicles to run on CNG, an affordable and environmentally friendly alternative to traditional fuels.
“With its capacity to convert nine vehicles daily and a dedicated team of 20 technicians, the centre will help SMEs reduce transportation costs and adapt to changing energy needs.
“It will also train young Nigerians in CNG conversion, maintenance, and repair, equipping them with practical skills and opening up new business opportunities,” he stated.
According to Mr Odii, the mandate of the Pi-CNG initiative is to roll out about one million converted cars in the next 18 months.
“We at SMEDAN are committing to taking 10 per cent of those cars to be converted at our centres,’’ he said.
He added that the project aligned with SMEDAN’s GROW Nigerian strategy, which focuses on providing SMEs with Guidance, Resources, Opportunities, and Workforce Support.
“By adopting CNG, we are helping SMEs cut costs while promoting sustainable energy practices. This effort is particularly timely as businesses face rising fuel costs following subsidy removal.
“SMEDAN is also committed to improving access to critical infrastructure for SMEs. We are upgrading Industrial Development Centres across the country to provide affordable tools and power tailored to the needs of small businesses,” Mr Odii said.
On his part, the Californian Secretary of Transportation, Mr Toks Omishakin, praised Nigeria’s efforts in adopting cleaner energy alternatives, such as CNG, but urged stakeholders to look beyond CNG and invest in long-term renewable solutions.
“I see a tremendous opportunity for collaboration between California and Nigeria in exploring renewable energy solutions like solar, wind, and hydrogen,” he said.
The Executive Vice Chairman of the Presidential CNG Initiative, Mr Toyin Zubair, commended SMEDAN and other stakeholders for their contributions, emphasising the need to harness Nigeria’s vast natural gas resources to drive the economy.
“Nigeria has one of the largest gas reserves in the world. By using this resource locally to power vehicles and industries, we can reduce costs and create a cleaner environment,” Mr Zubair said.
The chief executive of Rolling Energy, Mr Mubarak Danbatta, explained that the conversion process prioritised safety and affordability, making it accessible to SMEs.
“With less than N4,000, a vehicle can be fully fueled with CNG, compared to over N60,000 for petrol. This is a significant relief for businesses.
“CNG is not a business for the rich. It is a business for everyone. And the good thing is that this partnership is being done with SMEDAN and Pi-CNG for the benefit of SMEs,” Mr Danbatta said.