By Destiny Obinna
The Federal Government is considering the deployment of mobile Compressed Natural Gas (CNG) refuelling stations to improve access to affordable energy in rural communities, particularly for farmers seeking alternatives to diesel and petrol-powered irrigation equipment.
The Chairman/Chief Executive Officer of the Presidential CNG Initiative and Electric Vehicles (Pi-CNG & EV), Ismaeel Ahmed, disclosed this at the APC Progressive Strategy Roundtable in Abuja, themed, “Promise to Proof: The Renewed Hope Conversation.”
Speaking during a session titled, “Fuel That Works: Reliable Energy, Affordable Transport and Fair Prices for Every Household and Business,” Ahmed said the proposed mobile stations would serve remote communities where establishing permanent refuelling facilities might not be commercially attractive to private investors.
He explained that consultations with state governments, particularly in northern Nigeria, had shown growing demand for CNG beyond the transportation sector, with farmers increasingly seeking cheaper energy sources for agricultural activities.
According to him, farmers are exploring the use of CNG-powered irrigation pumps to reduce production costs associated with diesel and petrol.
Ahmed cited Jigawa State as an example, disclosing that the governor had informed the initiative that more than two million farmers in the state could benefit from affordable 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.
Although solar-powered irrigation had been introduced as an alternative, he said some farmers preferred mechanical pumps because of their wider coverage and operational capacity.
The Pi-CNG chief executive said the Federal Government was committed to accelerating the expansion of gas infrastructure, adding that President Bola Tinubu had authorised the initiative to intensify its activities.
However, he identified inadequate gas supply and delays in securing licences for CNG refuelling stations as major challenges confronting the programme.
He appealed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to expedite the licensing process for investors seeking to establish CNG stations.
While acknowledging the importance of safety regulations in the development of gas infrastructure, Ahmed urged the regulator to streamline the process to support the timely implementation of the initiative.
He also reiterated the need to explore mobile CNG stations as a means of reaching farmers and other consumers in remote communities where permanent facilities might not immediately attract private investment.
Ahmed disclosed that 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, Dr. Abba Abubakar Aliyu; the representative of the Niger Delta Power Holding Company, Mr. Abdullahi Kassim; the Chairman of the Nigerian Electricity Regulatory Commission, Dr. Musiliu Oseni; and the representative of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Dr. Mustapha Lamorde.
On rural electrification, Aliyu discussed electricity access gaps, national mapping, least-cost electrification planning and the deployment of mini-grids and captive power projects.
Participants were informed of plans to deploy 1,350 mini-grids under a $750 million project aimed at improving electricity access in underserved communities.
Kassim, while presenting the activities of the Niger Delta Power Holding Company, discussed its ownership structure, the history of the National Integrated Power Projects assets and its contribution to electricity generation.
He disclosed that the company operated 10 power plants with a combined generation capacity of 4,000 megawatts.
He also highlighted the company’s transmission and distribution infrastructure, industrial power initiatives, solar deployments and recently awarded community infrastructure contracts.
On electricity tariffs, affordability and service delivery, Oseni explained the different customer bands and the relationship between electricity tariffs and hours of supply.
He said electricity costs were estimated at about N200 per kilowatt-hour, while the commission was pursuing measures to improve power supply through investments in generation, mini-grids, debt recovery and net billing.
NERC also reported an increase of approximately 780 megawatts in installed generation capacity.
On fuel availability and energy security, Lamorde discussed the regulatory framework for petroleum supply, domestic refining, product pricing and strategic fuel reserves.
His presentation highlighted efforts to monitor fuel availability, with a target of 30 days of supply monitoring and a longer-term goal of developing strategic reserves capable of covering 90 days.
Participants were also informed that the Port Harcourt, Warri and Kaduna refineries, with a combined capacity of about 445,000 barrels per day, were currently shut down.
The representative said the government was engaging international technical experts to address the challenges affecting the facilities.
He further 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.
On petroleum product quality, the regulator highlighted efforts to modernise laboratories across the country, noting that two laboratories had recently been completed, while another was expected to be commissioned before the end of the year.
Participants also raised questions about historical electricity generation capacity, additional refinery investments, local production of electric vehicles and solar panels, diaspora investment opportunities and complaints against electricity distribution companies.
Addressing issues surrounding electric vehicles and battery production, Ahmed said lithium development was being handled by the Ministry of Solid Minerals Development.
He added that the government was interested in encouraging local battery manufacturing, vehicle assembly and electric vehicle production.
Responding to concerns about electricity disconnections, Oseni said mass disconnections were prohibited and outlined the complaint channels available to electricity consumers.
He also discussed possible compensation arrangements for customers who finance improvements to electricity distribution networks.
The NERC chairman acknowledged that electricity supply to Band A customers had improved but admitted that overall service delivery remained below the desired level.
