The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has partnered with Rolling Energy to convert 100,000 vehicles to Compressed Natural Gas (CNG) within 18 months, an initiative aimed at reducing costs for small and medium enterprises (SMEs) and supporting Nigeria’s transition to cleaner energy.
SMEDAN’s Director-General, Dr. Charles Odii, disclosed this on Friday while speaking at the unveiling of a CNG Conversion and Training Centre in Abuja. He described the project as a strategic move to help SMEs adapt to changing energy needs.
According to Odii, the mandate of the Presidential CNG Initiative (Pi-CNG) is to roll out about one million converted cars in the next 18 months.
“We at SMEDAN are committing to taking 10% of those cars to be converted at our centres,’’ he said.
Grow Nigeria strategy
Odii noted 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,” he said.
- He noted that the centre, equipped with the capacity to convert nine vehicles daily, is staffed by 20 skilled technicians.
- It also serves as a training hub for young Nigerians in CNG conversion, maintenance, and repair, opening new business opportunities and equipping participants with essential skills.
Harnessing Nigeria’s natural gas resources
Also speaking at the event, Executive Vice Chairman of the Presidential CNG Initiative, Mr. Toyin Zubair, lauded SMEDAN and its partners for leveraging Nigeria’s vast natural gas reserves to promote economic growth.
“Nigeria has one of the largest gas reserves globally. Using this resource locally to power vehicles and industries will not only reduce costs but also create a cleaner environment,” Zubair said.
- Rolling Energy CEO, Mr. Mubarak Danbatta, highlighted the affordability of CNG as a major benefit for SMEs.
- He emphasized that the initiative is designed to be inclusive, with a focus on SMEs, ensuring that the benefits of the CNG conversion process are widely accessible.
“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 been pending heavily on CNG initiatives in recent times to encourage the embrace of the alternative to premium motor spirit, popularly known as petrol.
- Just a few weeks ago, the P-CNG announced that it had invested over $200 million in Nigeria’s CNG value chain.
- This initial investment was directed toward developing essential infrastructure, including the construction of mother stations, daughter stations, refuelling stations, and conversion centers.
- Notably, $175 million was allocated specifically for mother stations, which serve as key distribution points for CNG. Additionally, 65 new licenses were issued to support the expansion of the sector, and 75 new daughter stations were under construction to enhance accessibility across the country.
By this December, the initiative said the total investment has surged to over $450 million, according to the latest figures provided by Michael Oluwagbemi, the CEO of PCNGi.