Federal Government Plans to Convert 10 Million PMS Vehicles to CNG

The Federal Government has unveiled an ambitious plan to convert 10 million Premium Motor Spirit (PMS) vehicles to Compressed Natural Gas (CNG) within the next 36 months. The announcement was made by the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, during a panel discussion titled “Energy Talk” at the ongoing ADIPEC 2023 conference and exhibition in Abu Dhabi, United Arab Emirates.

Minister Ekpo revealed that this initiative is a collaborative effort between the government and 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 use of CNG as the primary fuel for vehicles nationwide. This initiative aims to transition 10 million vehicles from PMS to CNG in the next 36 months.”

The Minister emphasized the significant benefits of this initiative, including the creation of over 100,000 job opportunities for Nigerians, substantial government savings resulting from reduced subsidies for PMS importation, and a reduction in carbon emissions through the use of clean gas to power internal combustion engines.

Ekpo reaffirmed the Federal Government’s commitment to creating a conducive operational and fiscal environment that supports investments in the upstream, midstream, and downstream gas sectors. He noted that President Bola Ahmed Tinubu’s administration is dedicated to promoting businesses related to Nigeria’s abundant natural gas resources.

He said, “This is evident in the actions of Mr. President when he split the Ministry of Petroleum Resources into Oil & Gas respectively. This singular action is a testament to President Tinubu’s resolve to promote gas commercialization in Nigeria for export and domestic utilization.”

The Minister, leading the Nigerian delegation at the event, outlined several initiatives related to the government’s efforts to advance gas-based industrialization and decarbonization with the collaboration of the private sector. These initiatives include the Decade of Gas (Upstream, Midstream, and Downstream), expanding access to cooking gas and CNG for vehicles, gas flare commercialization programs, and gas-to-petrochemicals initiatives.

Minister Ekpo also informed the audience about specific policy changes aimed at reforming gas pricing, developing non-associated gas acreages, and reviewing the terms of production sharing contracts to attract investments exceeding $20 billion for offshore and deep-water acreage development. He noted that the ministry is actively working with its respective agencies to push these reforms through the legislative process and secure the President’s endorsement.

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