CNG - NEWS AGENCY OF NIGERIA

Philip Daniel Yatai
Dec, Sat, 2024

SMEDAN, coy target 100,000 CNG vehicle conversions to support SMEs

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By Lucy Ogalue

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), says it is collaborating with Rolling Energy to convert 100,000 vehicles to Compressed Natural Gas (CNG) in 18 months.

The Director-General of SMEDAN, Dr Charles Odii said this at the unveiling of a CNG Conversion and Training Center on Friday in Abuja.

According to him, the initiative will support Small and Medium enterprises (SMEs).

The News Agency of Nigeria (NAN) reports that the initiative is a collaboration between SMEDAN, Rolling Energy, and 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”.

According to 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.

According to Odii, 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.

The California’s 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,” Omishakin said.

The Executive Vice Chairman of the Presidential CNG Initiative, Mr Toyin Zubair, commended SMEDAN and other stakeholders for their contributions.

He emphasised 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,” Zubair said.

The Chief Executive Officer 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 ,” Danbatta said. (NAN)

Edited by Ese E. Eniola Williams

Tosin Kolade
Oct, Wed, 2024

General News

Tinubu charges Nigerians to embrace CNG

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By Salif Atojoko

President Bola Tinubu, on Wednesday, charged Nigerians to embrace the Compressed Natural Gas (CNG), which he said had come to stay.

Mr Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), said, while addressing State House correspondents, that the President gave the charge at the Federal Executive Council (FEC) meeting.

“We are well aware that the President set up a Presidential Committee on the CNG to drive the CNG project.

“It is left for us to inform the general public that CNG has come to stay, and we have to follow that route because CNG is safe, cheaper, and protects the environment,” said the Minister.

He said the President also directed that most of the filling stations across the country should be converted to CNG stations with conversion kits to enable people convert their vehicles to CNG.

“It is important to note that when you are using CNG, you save a lot of money, a litre of fuel can go for N1000, but you get CNG at N200 per litre, which saves you N800.

“With the passion of Mr President, the push that he has given to us, we’ll try to drive the CNG programme to reach the nooks and crannies of this country.

“We have to take advantage of the natural resources, gas, that God has endowed us with,” said Ekpo.

The Minister assured that gas was available in large quantity, and the only challenge was infrastructure to deliver the product to filling stations.

He, however, said the President directed that adequate infrastructure should be provided to ensure the delivery of gas to filling stations.

“What we produce in our country is more than enough for us to use for CNG; and of course, you know, we are exporting to so many other countries,” he said.

On the high cost of conversion of cars to CNG, the Minister said it was because the conversion kits were imported.

He said that with more private investors taking advantage of the CNG project, the price would drastically come down eventually.

Alhaji Mohammed Idris, Minister of Information and National Orientation, said the President and members of FEC believed that there was need for further enlightenment of the Nigerian public to know the advantages of using CNG.

“It is not just because it is cheaper, but because it also marks our own transition from fossil fuels to cleaner energy that the world is moving towards,” he said. (NAN) (www.nannews.ng)

Edited by Oluwole Sogunle

Muhyideen Jimoh
Oct, Fri, 2024

Oil & Gas

Stakeholders earmark N10bn fund for CNG conversion

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By Emmanuella Anokam

The Ministry of Finance Incorporated (MOFI) and other stakeholders are partnering to provide N10 billion credit to Nigerians for Compressed Natural Gas(CNG) conversions.

The stakeholders are Nigerian Consumer Credit Corporation (CREDICORP) and the Presidential Initiative on Compressed Natural Gas (Pi-CNG).

At the agreement signing on Wednesday in Abuja, the partners unveiled the N10 billion Credit Access for Light and Mobility (CALM) Fund, in response to growing financial strain on Nigerians, due to high energy and transportation costs.

The News Agency of Nigeria (NAN) reports that the Pi-CNG and CREDICORP are among the portfolios companies under MOFI, an investment and assets management establishment of the Federal Government.

The new fund will enable Nigerians to obtain loans for CNG conversions kits and energy-saving solutions through Participating Financial Institutions (PFIs), providing a pathway to sustainable energy without the financial burden of upfront costs.

Speaking, Mr Uzoma Nwagba, Managing Director/Chief Executive Officer, CREDICORP, said MOFI would aggregate and expand the consortium fund, collaborating with private and institutional investors to grow initial N10 billion fund.

Nwagba explained that the CREDICORP would act as Fund Manager; using its expertise in consumer credit to manage loan disbursements and offer credit guarantees.

“We are setting aside a fund that will allow Nigerians specifically access credits to convert their vehicles to CNG with one to three years repayment duration.

“CREDICORP will seed the CALM Fund with N2.5 billion, ensuring that Nigerians can access affordable financing at 15 to 20 per cent per cent interest rate, through Participating Financial Institutions (PFIs).

“People are charged different interest rates depending on their institutions and credit worthiness, financial behavior, earnings and diligence with paying back previously,” he said.

He said the Pi-CNG Ltd. would serve as a service provider, facilitating the conversion of vehicles to CNG through authorised centers and offering discounted conversion packages for consumers using CALM loans.

Michael Oluwagbemi, Chief Executive Officer, Pi-CNG, said the need for Nigerians to be mobile and enjoy affordable, eco-friendly fuel and reliable transportation made President Bola Tinubu to introduce the Pi-CNG programme.

Oluwagbemi said to achieve this for a vast majority of consumers, the president initiated the launch of the conversion incentive programme for the commercial sector.

“The Consumer Credit Corporation is partnering with us to launch this access for private individuals to access consumer credits to afford the cost of conversion, to enjoy the low cost of CNG and the access it gives for transportation.

“This scheme has the tendency to attract the investment that will enable these conversion kits to be manufactured domestically; another programme is being coordinated with MOFI, on domestic manufacturing capacity for the CNG sector,’’ he said.

The Pi-CNG boss explained that the development would enable civil servants or workers in the organised private sector whom their salaries/income could be tracked and verified by a financial institution to benefit from the fund.

He said it would naturally translate into other sectors of the economy, because the civil servants and organised private sector workers could leverage their vehicle at low cost for the economic benefit.

Earlier, Dr Armstrong Takang, Managing Director/Chief Executive Officer, MOFI, said the fund would address the unintended consequences arising from oil subsidy reforms.

He said one of the unintended consequences was the cost of transportation which spiked over the last several months, creating a lot of challenges for many families who were finding it difficult to move around.

“Through flexible financing options, Nigerians will be able to obtain immediate credit to convert their vehicles to CNG and adopt solar energy solutions—reducing dependency on expensive fuels and lowering electricity bills,” he said.

Nigerians are encouraged to explore this opportunity by applying for CALM Fund loans through participating financial institutions (www.credicorp.ng/apply) while specific CNG conversion centres will market the options to consumers. (NAN)(www.nannews.ng)

Edited by Chijioke Okoronkwo

Philip Daniel Yatai
Oct, Tue, 2024

Science & Tech

FG rewards Nigerian vehicle designer with electric car

986 total views today

By Khadijat Ahmed/Lucy Ogalue

The Federal Government has rewarded Mr Enoch Tobiloba with an electric car, after emerging the winner of a challenge to design a hybrid car that uses both Compressed Natural Gas (CNG) and electricity.

Mr Joseph Osanipin, Director-General, National Automotive Design and Development Council (NADDC), presented the vehicle to Tobiloba in Abuja.

The News Agency of Nigeria (NAN) reports that the challenge was organised by the NADDC and the Office of the Special Assistant to the President on Youth Initiatives, Monitoring and Delivery.

The competition, which was held from Sept. 11 to Sept. 12 was designed to equip youths with the knowledge and skills needed to capitalise on the opportunities in the CNG value chain.

The initiative is in line with the Renewed Hope Agenda of President Bola Tinubu.

Osanipin expressed the Federal Government’s commitment to enhancing local auto industry and fostering innovation among Nigerian youths.

He emphasised the imperative of commencing the design of vehicles that are uniquely ours and produced with the topography of Nigeria in consideration.

“In a bid to elevate local content in vehicle manufacturing, the initiative encourages aspiring designers to engage in the full vehicle development process, starting from concept design to production.

“It all starts with designing. We want to engage Nigerians so that we can design vehicles, beginning with components such as rim, shock absorbers and other essential parts.

“The programme aims to gradually increase the local content of vehicles, allowing for a more sustainable automotive sector. Currently, efforts are underway to design and produce various component parts domestically.

“After the designing phase, we will gather people in Nigeria to produce these parts. Once we have successfully tested and integrated them, we can proceed to mass production,” Osanipin said.

While acknowledging the complexity of the project, the director-general expressed confidence in the timeline set for the next four years.

He, however, said that progress would be steady, as there were no immediate deadlines for completion.

“So it is gradual. We cannot say it will be done in two years or three years but we have taken the step and we are moving ahead with that step.

Let us see where it will take us in the next four years,” he said.

Osanipin congratulated the winner, who he identified as EV brand Ambassador and urged him not to relent in his endeavours.

“So we want you to continue to empower yourself, develop yourself, and then see how this will lead us as a country,” he said.

The recipient of the electric vehicle, Mr Enoch Tobiloba, a final year student of Yaba Technology College, expressed delight at the recognition and thanked the NADDC and the government.

“I am very happy because this has strengthened my hope in the future for automobile engineering and design in Nigeria.

”This is a motivation for me to keep doing what I do best, which is transportation design.

“This is an eye opener to everybody and other transportation design enthusiasts not to give up but try to find their way into auto industries in Nigeria to help boost the sector,” he said. (NAN)

Edited by Kadiri Abdulrahman