…Says Ajaokuta to become one of Nigeria’s CNG hubs
The Minister of Steel Development, Prince Shuaibu Audu has praised President Bola Tinubu’s Compressed Natural Gas Initiative (P-CNGI).
This commendation comes as the Presidential CNG Initiative (P-CNGI) launched its pilot conversion incentive programme and handed over CNG buses to transporters in Kogi State.
In his address at the inaugural launch of the CNG initiative on Wednesday, October 2, 2024, in Lokoja, Kogi State, Prince Audu informed the citizens that the ‘Renewed Hope’ agenda of President Tinubu has now reached their doorstep. He emphasised that the CNG initiative aims to reduce transportation costs by over 40 percent, thereby alleviating the impact of the recent fuel subsidy removal.
The minister also shared plans to position Ajaokuta as one of Nigeria’s CNG hubs. The ministry is preparing to present a proposal to the President for the establishment of an industrial park within the Ajaokuta area, which would also feature a CNG park and a free trade zone.
“Mr. President stated in his Independence Day speech that Nigeria spends over $10 billion annually on fuel subsidies, putting the country on the brink of economic collapse. He recognised the urgency of action, which led to the removal of the petroleum subsidy. While this move has presented challenges, including increased food prices, Mr. President is committed to reversing this trend to ensure that food prices decrease swiftly. One of the initiatives contributing to this goal is the provision of CNG vehicles to Nigerians,” he explained.
“Mr. President has mandated the conversion of one million vehicles from petrol to gas by the end of 2025. This initiative is highly significant for our nation.”
The minister outlined the benefits of the CNG conversion initiative and the pivotal role Ajaokuta plays in this development. He described Ajaokuta as a gas hub for Nigeria, noting that gas pipelines run from Warri to Ajaokuta and from Ajaokuta to Kaduna and Kano (AKK Pipeline). “This means that billions of cubic feet of gas are transported from Ajaokuta to various parts of Nigeria each year.
“We are proposing to Mr. President that Ajaokuta be declared an Industrial Park, which will also host a CNG park, making it one of Nigeria’s key CNG hubs. Instead of relying on conversion centres and parks located outside Kogi State, Ajaokuta offers the necessary land, gas supply and facilities for conversion kit production. This Industrial Park will attract steel companies to Ajaokuta and everything we need is available in our region. Importantly, this initiative will create thousands of jobs for Kogites and Nigerians as a whole.
“The ‘Renewed Hope’ agenda of President Bola Tinubu is here and will revitalise the economy, supporting the President’s ambition to grow the economy by $1 trillion by 2030, with God’s grace,” Audu stated.
Kogi State governor, Alhaji Ahmed Usman Ododo characterised the CNG initiative as a significant milestone in the ‘Renewed Hope’ agenda of President Tinubu. He expressed gratitude to the President for an initiative designed to reduce reliance on petrol, which would help alleviate the struggles faced by the people.
Ododo, represented by deputy governor, Elder Joel Salifu Ododo, pledged the state’s commitment to the project, promising to train 250 youths in CNG conversion technology and empower them to embrace global advancements.
The programme director of the P-CNGI, Engr. Michael Oluwagbemi explained that Kogi was chosen for the inaugural launch due to its status as a confluence of water bodies and its critical role in the national transportation network, serving as a link between the north and other regions of the country. He noted that Kogi also hosts an essential gas hub.
In a statement from the ministry’s head of press and public relations, Salamatu Jibaniya, Oluwagbemi stated that this event is not merely about reducing transportation fares for commercial drivers or fulfilling the President’s promise to convert vehicles and tricycles for free. It is also an opportunity for Nigerians to tap into the country’s abundant resources, urging everyone to embrace the transformative initiative spearheaded by Mr. President.
