SMEDAN Partners with Rolling Energy to Convert 100,000 Vehicles to CNG

  • SMEDAN partners with Rolling Energy to convert 100,000 vehicles to Compressed Natural Gas (CNG) within 18 months, reducing costs for SMEs and supporting cleaner energy.
  • The CNG Conversion and Training Centre in Abuja aims to equip young Nigerians with skills in CNG maintenance and create new business opportunities.

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has partnered with Rolling Energy to convert 100,000 vehicles to Compressed Natural Gas (CNG) within the next 18 months. This initiative aims to reduce operational costs for small and medium enterprises (SMEs) while supporting Nigeria’s shift toward cleaner energy. SMEDAN’s Director-General, Dr Charles Odii, announced on Friday during the unveiling of a CNG Conversion and Training Centre in Abuja, calling the project a strategic move to help SMEs adapt to evolving energy needs.

Odii explained that the Presidential CNG Initiative (Pi-CNG) aims to convert one million vehicles in 18 months. SMEDAN is committed to converting 10% of these vehicles at their centres. The initiative aligns with SMEDAN’s GROW Nigeria strategy, which provides SMEs with Guidance, Resources, Opportunities, and Workforce Support. He emphasised that adopting CNG will help SMEs lower costs while promoting sustainable energy practices, especially considering rising fuel prices due to removing subsidies.

The newly established CNG Conversion and Training Centre, which can convert up to nine vehicles daily, is staffed by 20 skilled technicians. It also serves as a training hub for young Nigerians, providing valuable CNG conversion, maintenance, and repair skills while creating new business opportunities.

Toyin Zubair, Executive Vice Chairman of the Presidential CNG Initiative, praised SMEDAN and its partners for utilising Nigeria’s abundant natural gas reserves to drive economic growth. He noted that converting vehicles and industries to use local natural gas will reduce costs and contribute to a cleaner environment.

Rolling Energy CEO Mubarak Danbatta highlighted CNG’s affordability as a major advantage for SMEs. He explained that a vehicle can be fully fueled with CNG for less than N4,000, compared to over N60,000 for petrol, offering significant savings for businesses.

In recent weeks, the Nigerian government has invested heavily in CNG initiatives, encouraging the adoption of this alternative fuel. The Presidential CNG Initiative has already invested over $200 million in the country’s CNG value chain, focusing on developing infrastructure such as mother stations, daughter stations, refuelling stations, and conversion centres. By December, the total investment had risen to over $450 million, with 65 new licenses issued and 75 new daughter stations under construction to improve access across Nigeria.

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