President Bola Ahmed Tinubu has warned that Nigeria’s expanding compressed natural gas (CNG) market must not become an industry that benefits mainly equipment importers and foreign suppliers, stressing the need for local manufacturing, technology transfer and skills development.
The President said Nigerian manufacturers, workers and businesses must play a major role in the development of the country’s CNG industry to ensure that the economic benefits of the transition are shared locally.
Tinubu gave the warning at the National CNG Summit held on Tuesday in Abuja. He was represented at the event by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo.
According to the President, the growing adoption of CNG-powered vehicles presents an opportunity to develop local industrial capacity rather than depend heavily on imported equipment and foreign expertise.
He cautioned that the expansion of the market should not become an opportunity that benefits only equipment importers and overseas suppliers.
The President’s position highlights the importance of connecting Nigeria’s energy transition efforts with local economic development, particularly through investment in manufacturing, technical expertise and employment.
Tinubu Calls for Local Manufacturing
Tinubu urged stakeholders in the CNG industry to prioritise local assembly and manufacturing of conversion kits, storage systems and other components required for the development of the market.
These components are essential to the conversion of vehicles from conventional petrol or diesel systems to compressed natural gas.
Increasing local production could create opportunities for Nigerian companies to participate in the supply chain, reduce dependence on imported equipment and strengthen the country’s industrial base.
The President’s call also reflects the need to ensure that the growing demand for CNG equipment translates into business opportunities for domestic manufacturers.
As more motorists and transport operators consider switching to CNG, demand for conversion equipment, storage facilities, maintenance services and related infrastructure is expected to remain important to the industry’s development.
However, without deliberate investment in local production, much of the demand could be met through imports, limiting the benefits available to Nigerian businesses and workers.
Technology Transfer and Skills Development
Beyond manufacturing, the President called for technology transfer partnerships involving Nigerian companies, foreign technology providers, technical institutions and research organisations.
Such partnerships are expected to support the development of local expertise and improve the ability of Nigerian businesses to participate in different areas of the CNG value chain.
Tinubu also emphasised the importance of training engineers, technicians, welders, fabricators, inspectors and mechanics.
These categories of workers are important to the installation, inspection, operation and maintenance of CNG systems and infrastructure.
A skilled workforce is particularly important because CNG operations require technical knowledge and strict attention to safety standards.
Training programmes could therefore help prepare Nigerian workers for employment opportunities while strengthening the quality of services available to motorists and businesses using natural gas.
The involvement of technical institutions and research bodies could also encourage innovation and the development of solutions suited to local operating conditions.
Nigeria Records More Than 143,000 CNG Vehicles
The Presidential Initiative on Compressed Natural Gas and Electric Vehicles (PiCNG & EV) disclosed that Nigeria now has more than 143,000 vehicles running on CNG.
The figure reflects the growing adoption of natural gas as an alternative fuel in the country’s transport sector.
CNG has attracted attention as Nigeria seeks to expand the use of its domestic natural gas resources and provide motorists with alternatives to conventional vehicle fuels.
The initiative has also attracted up to $2.6 billion in private-sector infrastructure investment, according to the figures presented in the supplied report.
The reported investment demonstrates the growing commercial interest in the development of CNG infrastructure and related services.
Private-sector participation is important to the expansion of the market because the industry requires investment in facilities, equipment, conversion services and other supporting infrastructure.
However, Tinubu’s warning suggests that investment growth must be accompanied by a stronger role for Nigerian companies and workers.
CNG Expansion and Nigeria’s Energy Transition
The expansion of CNG adoption forms part of Nigeria’s broader efforts to utilise its natural gas resources and diversify energy options in the transport sector.
As a country with significant natural gas resources, Nigeria has opportunities to develop industries around gas production, distribution, processing and utilisation.
The transport sector is one area where increased use of natural gas could support a wider domestic market for the country’s resources.
However, the success of the transition will depend on more than increasing the number of vehicles using CNG.
It will also require reliable infrastructure, accessible conversion services, qualified technical personnel, effective regulation and public confidence in the safety of the systems.
The development of local manufacturing capacity could help strengthen the sustainability of the industry by ensuring that more of the equipment, expertise and services required are available within Nigeria.
Local Participation Key to Long-Term Growth
Tinubu’s message places local content at the centre of Nigeria’s expanding CNG market.
While foreign suppliers and technology providers can contribute capital, equipment and technical knowledge, Nigerian companies must also be positioned to develop the capacity required to serve the industry.
Stronger partnerships between local manufacturers, foreign investors, research institutions and training organisations could help achieve this objective.
For Nigerian workers, the development of technical skills could create new employment opportunities in manufacturing, vehicle conversion, equipment maintenance, inspection and infrastructure operations.
For businesses, local assembly and production could open new markets and encourage investment in engineering and industrial services.
Ultimately, the growth of Nigeria’s CNG industry will be measured not only by the number of vehicles converted or the amount of private investment attracted, but also by the value created within the domestic economy.
The President’s warning is therefore a call for a more inclusive approach to the energy transition, one in which local manufacturers, skilled workers and Nigerian businesses share meaningfully in the opportunities created by the country’s expanding CNG market.
