The Federal Government has officially launched the Conversion Incentive Programme in Uyo, Akwa Ibom State, marking a major step towards diversifying Nigeria’s transportation sector and reducing the state’s dependence on oil. This initiative aims to promote the use of Compressed Natural Gas (CNG) in vehicles, thereby offering a cleaner, more affordable alternative to fuel.
The unveiling ceremony took place on Friday at Nsik Motors Terminal, Itam, Uyo. The Programme Director and Chief Executive of the Presidential Compressed Natural Gas Initiative (Pi-CNG), Michael Oluwagbemi, emphasized the significance of the project, describing it as a response to the financial burdens caused by the removal of fuel subsidies. Oluwagbemi, represented by the Head of Commercials, Mr. Tosin Coker, explained that the initiative will serve as a benchmark for vehicle conversion and training programs in Akwa Ibom.
“The Presidential CNG Initiative (Pi-CNG) is part of President Bola Tinubu’s relief measures to assist Nigerians coping with the challenges that arose after the removal of the fuel subsidy. This launch marks a new standard for CNG conversion and training in Akwa Ibom State,” Oluwagbemi said.
As part of the initiative, the government is offering free vehicle conversion kits and cylinders to commercial transport operators. Oluwagbemi explained that the conversion of commercial vehicles to CNG would be carried out at no cost through accredited conversion centers. This strategic move aims to ease the transition towards cleaner and more affordable energy sources for public transport.
“The government is providing the kits and cylinders for free, and the conversion will be done at accredited centers. This is part of President Tinubu’s directive to offer relief to commercial transporters and promote cleaner energy,” Oluwagbemi added.
The launch received enthusiastic support from local transport unions and state officials. Nsikan Johnny, Chairman of Nsik Oil and Gas Limited, expressed his gratitude to the federal government for introducing the initiative, highlighting that it would help ease the economic strain caused by the removal of the fuel subsidy. Johnny also announced plans to build a CNG mother station in Esit Eket Local Government Area and provide mobile CNG dispensers across the state.
“We are committed to promoting clean energy through this initiative. As a focused player in the industry, we aim to establish three mobile dispensers within the next six months and roll out daughter stations across Akwa Ibom to support the CNG transition,” Johnny stated.
The initiative is expected to stimulate job creation, with training programs for local residents on CNG conversion. Nsik Oil and Gas Limited will partner with the Pi-CNG to consolidate value chain infrastructure and expand the availability of CNG-powered vehicles across the state.
State government officials also praised the launch, with Akwa Ibom’s Commissioner for Transport, Orman Esin, represented by Director of Transport Bassey Akpanonong, describing it as a major step towards a successful energy transition for the state.
The event was attended by representatives from transport unions, including the Road Transport Employers Association of Nigeria (RTEAN) and the Nigerian Union of Road Transport Workers (NURTW), who voiced their support for the conversion initiative and its potential to improve the efficiency and affordability of transportation across Nigeria.
The highlight of the event was the signing of a Memorandum of Understanding (MoU) between the Presidential CNG Initiative, Nsik Oil and Gas, and two other key stakeholders, marking the official collaboration to drive CNG adoption in Akwa Ibom.
This initiative aligns with the federal government’s broader efforts to shift towards more sustainable and affordable energy sources, especially in the transportation sector, and is seen as a critical component of Nigeria’s energy transition plan.
