The Ministry of Steel Development has revealed that it is in talks with the Presidential Compressed Natural Gas Initiative (P-CNGI) to establish a compressed natural gas park within the Ajaokuta Industrial Park.
Minister of Steel Development, Prince Shuaibu Audu met with P-CNGI programme director and chief executive officer, Engr. Michael Oluwagbemi in Abuja to discuss the establishment of a CNG park within the industrial park.
Audu emphasised that one of the key objectives under President Bola Tinubu’s ‘Renewed Hope’ agenda is the CNG Initiative. This initiative is critical, particularly following the removal of the petroleum subsidy, as it aims to reduce transportation costs by at least 40 per cent. The minister noted that the ministry is collaborating with the P-CNGI to set up the CNG park within the proposed Ajaokuta Industrial Park.
“Mr. President has mandated that he wants a minimum of one million CNG vehicles on the road by 2027. There is a lot of work to be done, and everything needed to partner with the Federal Government under the CNG initiative is available in Ajaokuta. The industrial park in Ajaokuta will house various companies, including the CNG park,” said Audu.
He added that Ajaokuta has all the resources needed to actualize the CNG initiative, including gas, engineering workshops, and tools workshops to facilitate the construction or assembly of the kits. The minister conveyed President Tinubu’s excitement about the initiative and the partnership between the Ministry and P-CNGI, which aligns with the plans to industrialise Nigeria, diversify and grow the economy and create jobs.
Audu commended Olugbemi for his excellent work in realising the CNG initiative. The permanent secretary of the ministry, Dr. Chris Osa Isokpunwu also praised the initiative and pledged the ministry’s support for the partnership with P-CNGI.
Olugbemi highlighted the importance of the steel industry for the CNG initiative, stating that steel components are at the heart of the project. He noted that establishing the CNG park in Ajaokuta would evolve from importing some components to manufacturing them locally. This shift will address challenges related to transporting CNG components into the country.
In a statement by the ministry’s head of press and public relations, Salamatu F. Jibaniya, Olugbemi explained that the collaboration with the Ministry of Steel Development has been crucial from the beginning. Ajaokuta, with its access to raw materials, is an ideal hub for this initiative. Olugbemi expressed optimism about the excellent collaboration with the ministry and emphasized that they have already made significant progress.
Sole administrator of Ajaokuta Steel Company Limited, Engr. Sumaila Abdul-Akaba welcomed the project, especially during the revival phase of the company. He assured P-CNGI of the steel company’s cooperation in bringing the project to fruition.
The meeting underscored the strategic importance of integrating the CNG initiative into the broader framework of Nigeria’s industrial development. By leveraging the resources and infrastructure available in Ajaokuta, the collaboration aims to accelerate the transition to CNG, reduce dependency on petroleum and foster economic growth through industrialisation. The successful implementation of this project is expected to set a precedent for future public-private partnerships in Nigeria’s industrial and energy sectors.
