Nigeria Invests $75m in CNG Infrastructure to Boost Clean Energy

The Federal Government has allocated over $75 million to develop Compressed Natural Gas (CNG) infrastructure as part of its drive to expand clean energy solutions across Nigeria.

This announcement was made by Mrs. Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, during the 18th OTL Africa Downstream Energy Week in Lagos, reported the News Agency of Nigeria (NAN).

Represented by her Technical Adviser on Energy, Mrs. Eriye Onagoruwa, Verheijen noted that this investment reflects the government’s commitment to promoting sustainable energy and reducing carbon emissions nationwide.

Highlighting the sector’s growth potential, she noted, “Despite having an oil and gas industry that has been operational for over 80 years, Nigeria has only tapped into 4% of its resources since 2016.”

“The government aims to foster transparency and efficiency by introducing incentives that encourage investment in CNG, liquefied natural gas (LNG), and electric vehicle technologies. 

“These measures will not only enhance sector growth but also make energy solutions more accessible and environmentally friendly,” she said.

Verheijen emphasized that the initiative will offer affordable, cleaner cooking options, promoting healthier households and a greener environment.

According to her, expanding CNG infrastructure will also reduce reliance on traditional fuels and advance Nigeria’s global sustainability commitments.

Lagos State Governor Babajide Sanwo-Olu, represented by Energy Commissioner Biodun Ogunleye, reaffirmed the state’s commitment to embracing cleaner energy solutions.

Sanwo-Olu highlighted that energy transition goes far beyond simply switching fuel sources, explaining, “It’s not just about fuel replacement; it’s about building an integrated ecosystem that covers exploration, production, storage, and retail.”

Adetunji Oyebanji, Chairman of the Advisory Board for OTL Africa Downstream Energy Week, spoke on the effects of deregulating Nigeria’s downstream sector.

He described deregulation as a game-changer, promoting competition, transparency, and efficiency within the sector. Oyebanji noted that initiatives like the launch of the Dangote Refinery would play a key role in the industry’s future.

He urged stakeholders to actively shape Africa’s energy future, emphasising that investment in compressed natural gas (CNG) infrastructure is a crucial step towards sustainable energy for Nigeria.