The Federal Government is considering mobile Compressed Natural Gas (CNG) stations to expand gas access in rural communities, particularly for farmers seeking cheaper energy for irrigation.
The Chairman/CEO of the Presidential CNG Initiative and Electric Vehicles (Pi-CNG & EV), Ismaeel Ahmed, disclosed this at the Abuja roundtable, Promise to Proof: The Renewed Hope Conversation, organised by the APC Progressive Strategy Roundtable.
Speaking during a session titled “Fuel That Works: Reliable Energy, Affordable Transport and Fair Prices for Every Household and Business,” Ahmed said consultations with state governments, especially in northern Nigeria, showed CNG demand was extending beyond transportation to agriculture.
According to him, farmers want to switch from expensive diesel and petrol to CNG-powered irrigation pumps to cut production costs.
He cited Jigawa State, where the governor told the initiative that over two million farmers could benefit from cheaper energy for irrigation.
Ahmed explained that mechanical irrigation pumps could cover about three hectares of farmland, compared with solar-powered pumps, which typically cover about one hectare.
He said the Federal Government was committed to aggressively expanding gas infrastructure, adding that President Bola Tinubu had given the initiative the go-ahead to intensify its activities.
However, he identified gas supply and delays in licensing CNG refuelling stations as major challenges.
He appealed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to accelerate licensing for investors, while acknowledging the need for strict safety regulations.
Ahmed said mobile CNG stations could serve remote communities where permanent facilities may not be commercially viable for private investors.
He said the CNG programme had recorded about 143,000 vehicle conversions, with investments estimated at $2.6 billion.
The roundtable also featured presentations by the Managing Director of the Rural Electrification Agency, Abba Abubakar Aliyu; the representative of the Niger Delta Power Holding Company, Abdullahi Kassim; the Chairman of the Nigerian Electricity Regulatory Commission, Musiliu Oseni; and the representative of the NMDPRA, Mustapha Lamorde.
On rural electrification, Aliyu discussed access gaps, national mapping, least-cost planning and deployment of mini-grids. The meeting was informed of plans to deploy 1,350 mini-grids under a $750 million project to improve electricity access in underserved communities.
Kassim said the Niger Delta Power Holding Company operates 10 power plants with a combined capacity of 4,000 megawatts. He also highlighted its transmission and distribution infrastructure, industrial power initiatives and solar deployments.
Oseni addressed tariffs, affordability and service delivery, explaining customer bands and the relationship between tariffs and hours of supply.
He said electricity costs were about N200 per kilowatt-hour, while the commission was pursuing measures to improve supply through investments in generation, mini-grids, debt recovery and net billing. He added that installed generation capacity had increased by about 780 megawatts.
On fuel availability, Lamorde discussed the regulatory framework for petroleum supply, domestic refining, product pricing and strategic reserves, with a target of 30 days of supply monitoring and an eventual goal of 90 days.
He said the Port Harcourt, Warri and Kaduna refineries, with a combined capacity of about 445,000 barrels per day, were currently shut down, but government was engaging international technical expertise to resolve the challenges.
He disclosed that more than 26 refineries had been licensed nationwide, while a pre-start-up safety review had been conducted for a 30,000-barrel-per-day Brenco refinery expected to commence operations soon.
On electric vehicles and battery production, Ahmed said lithium development was being handled by the Ministry of Solid Minerals Development, adding that government was interested in encouraging local battery manufacturing, vehicle assembly and production of electric vehicles.
Responding to concerns about disconnections, Oseni said mass disconnections were prohibited and outlined complaint channels for consumers. He acknowledged that supply to Band A customers had improved but admitted overall service delivery remained below the desired level.
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