The Federal Government of Nigeria has announced a bold initiative aimed at converting 10 million Premium Motor Spirit (PMS) vehicles to Compressed Natural Gas (CNG) within the next 36 months.

This significant move was disclosed by the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, during a panel discussion titled “Energy Talk” at the ADIPEC 2023 conference and exhibition held in Abu Dhabi, United Arab Emirates.

Minister Ekpo emphasized that this endeavor is a collaborative effort with the private sector.

He stated, “Our ministry is working with the organized private sector to roll out over two million CNG conversion kits for free within the next nine months to promote the utilization of CNG as the primary fuel for vehicles nationwide.

This initiative is aimed at converting 10 million vehicles from PMS to CNG in the next 36 months.”

The Minister highlighted several key benefits of this ambitious initiative, including the creation of more than 100,000 jobs for Nigerians, substantial government savings resulting from reduced subsidy payments for PMS imports, and a reduction in carbon emissions due to the use of clean natural gas to power internal combustion engines.

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Minister Ekpo also reiterated the Federal Government’s commitment to creating an enabling operational and fiscal environment to support investments in the upstream, midstream, and downstream gas sectors.

He emphasized President Bola Ahmed Tinubu’s dedication to promoting business opportunities related to Nigeria’s abundant natural gas resources.

This commitment is evident in President Tinubu’s decision to split the Ministry of Petroleum Resources into separate entities for oil and gas.

It reflects the President’s determination to advance gas commercialization in Nigeria, both for domestic use and export.

Minister Ekpo, who led the Nigerian delegation to the ADIPEC event, highlighted various government initiatives aimed at promoting and supporting gas-based industrialization and decarbonization.

These initiatives encompass the Decade of Gas program (encompassing upstream, midstream, and downstream activities), expanding access to cooking gas, promoting CNG for vehicles, monetizing gas flares, and developing gas-to-petrochemicals projects.

The Minister also informed the audience about specific policy changes related to gas pricing, non-associated gas acreage development, and the review of production sharing contracts, all designed to attract investments exceeding $20 billion for offshore and deepwater acreage development.