The Federal Government is considering deploying mobile Compressed Natural Gas (CNG) stations to rural communities to enable farmers to switch from expensive petrol and diesel to cheaper gas-powered irrigation and reduce agricultural production costs.
The Chairman and Chief Executive Officer of the Presidential CNG Initiative and Electric Vehicles (Pi-CNG & EV), Ismaeel Ahmed, disclosed this at an Abuja roundtable on Promise to Proof: The Renewed Hope Conversation, organised by the All Progressives Congress (APC) and the Progressive Strategy Roundtable.
Ahmed said the proposed mobile stations would address the challenge of limited gas infrastructure in remote communities where private investors might not find it commercially attractive to establish permanent CNG refuelling facilities.
He said the government was exploring the option following consultations with state governments, particularly in northern Nigeria, which revealed growing demand for CNG beyond the transportation sector.
According to him, farmers are increasingly seeking to adopt gas-powered irrigation pumps as an alternative to petrol and diesel-powered equipment to lower production expenses and improve agricultural productivity.
Citing Jigawa State as an example, Ahmed said the governor had informed the initiative that the state had more than two million farmers who could benefit from access to cheaper energy for irrigation.
He explained that mechanical irrigation pumps could cover about three hectares of farmland, compared with solar-powered pumps, which typically cover about one hectare.
Ahmed said although solar-powered irrigation was being promoted as an alternative energy source, some farmers preferred mechanical pumps because of their wider coverage and greater operational capacity.
He said the proposed mobile CNG stations would make gas readily available to farmers in underserved locations, particularly where the absence of permanent refuelling infrastructure was limiting adoption.
The Pi-CNG boss said President Bola Tinubu had authorised the initiative to intensify its activities, stressing that the Federal Government was committed to accelerating the expansion of gas infrastructure across the country.
However, he identified inadequate gas supply and delays in securing licences for CNG refuelling stations as major obstacles to the programme.
He appealed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to expedite the licensing process for investors willing to establish CNG facilities.
While acknowledging the importance of strict safety standards in gas infrastructure development, Ahmed urged the regulator to streamline approval procedures to match the urgency of the government’s gas expansion drive.
He disclosed that the CNG programme had recorded about 143,000 vehicle conversions, with investments estimated at $2.6 billion.
The discussion also focused on electricity access, affordability, power generation and fuel security, with government agencies outlining ongoing interventions and infrastructure expansion plans.
The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, highlighted electricity access gaps and the deployment of mini-grids and captive power projects to underserved communities.
He disclosed plans to deploy 1,350 mini-grids under a $750 million project aimed at expanding electricity access in rural and underserved areas.
The representative of the Niger Delta Power Holding Company, Abdullahi Kassim, said the company operated 10 power plants with a combined generation capacity of 4,000 megawatts.
He also highlighted its investments in transmission and distribution infrastructure, industrial power initiatives, solar deployments and community infrastructure projects.
The Chairman of the Nigerian Electricity Regulatory Commission (NERC), Dr Musiliu Oseni, said electricity production costs were estimated at 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 disclosed that installed electricity generation capacity had increased by approximately 780 megawatts but acknowledged that overall service delivery remained below expectations.
On fuel availability and energy security, the NMDPRA representative, Dr Mustapha Lamorde, disclosed that the Port Harcourt, Warri and Kaduna refineries, with a combined capacity of about 445,000 barrels per day, remained shut down.
He said the government was engaging international technical experts to address challenges affecting the facilities.
Lamorde also disclosed that more than 26 refineries had been licensed across the country, while a pre-start-up safety review had recently been conducted for the 30,000-barrel-per-day Brenco refinery, which is expected to commence operations soon.
He said efforts were also ongoing to strengthen fuel supply monitoring, with a target of 30 days of supply monitoring and an eventual goal of building strategic reserves capable of meeting national demand for 90 days.
The roundtable further examined electric vehicle development and local battery manufacturing, with Ahmed saying the government was interested in encouraging domestic production of batteries, vehicle assembly and electric vehicles.
Participants also raised concerns about electricity disconnections, distribution company performance, local production of solar panels, diaspora investment opportunities and additional refinery investments.
Responding to complaints about electricity disconnections, Oseni said mass disconnections were prohibited and outlined channels through which consumers could seek redress.
He also discussed possible compensation arrangements for customers who finance improvements to electricity distribution networks
