CNG Infrastructure: Tinubu attracted $1bn to our two free trade zones – OGFZA CEO

President Bola Ahmed Tinubu’s alternative energy initiative has attracted over $1 billion in Foreign Direct Investment (FDI) to the Liberty Oil and Gas Free Zone (OGFZ) under the Oil and Gas Free Zone Authority (OGFZA) in the past 17 months, according to OGFZA’s Chief Executive Officer, Bamanga Jada.

Jada made this announcement during a sensitization program focused on developing Compressed Natural Gas (CNG) infrastructure at the Onne Oil and Gas Free Zone in Port Harcourt.

Meanwhile, key stakeholders from the transportation, environmental, and oil and gas sectors have lauded President Tinubu’s CNG initiative as a significant catalyst for industrialization.

Speaking at the same event, the Minister of Industry, Trade, and Investment, Dr. Jumoke Oduwole, described the initiative as one of the President’s bold and transformative reforms.

The sensitization program, themed ‘Driving Sustainable Transportation: Accelerating CNG Adoption,’ was organized by Portland Gas in partnership with the Oil and Gas Free Zone Authority.

Speaking at the event, the minister emphasized that Compressed Natural Gas (CNG) provides a cleaner, more cost-effective, and sustainable solution for powering vehicles, particularly in the transportation and logistics sectors critical to industrial activities.

Represented by a director in the ministry, Theresa Ogolo, the minister described the event as a pivotal moment in advancing sustainable transportation and transitioning to cleaner, more efficient energy systems.

The minister noted, “The adoption of CNG as a viable alternative fuel aligns with the Federal Government’s broader energy transition strategy. This strategy seeks to diversify our energy mix, reduce carbon emissions, and harness the economic potential of Nigeria’s abundant natural gas reserves.

“Our presence here today, at Onne Oil and Gas Free Zone, is deliberate and strategic. As a hub for innovation, investment, and industrial activity, Onne is ideally positioned to serve as a launching pad for this initiative.”

She explained that by establishing CNG infrastructure within the zone, the government aims to facilitate nationwide adoption while fostering industries and transportation systems that are sustainable.

Ogolo further highlighted the Federal Government’s commitment, through the Ministry of Industry, Trade and Investment, to fostering partnerships across both public and private sectors.

She added, “As witnessed today, the strategic collaboration between Oil and Gas Free Zones Authority and Portland Gas Limited on the CNG adoption and development project is an initiative to promote the use of CNG as an alternative cleaner and cheaper energy source tailored towards contributing to the current administration’s transformative agenda.”

To achieve this transformative goal, she emphasized the importance of engaging stakeholders through strategic sensitization and capacity-building efforts focused on CNG adoption. She underscored the need to educate transport operators, industrial players, and end-users about the economic and environmental advantages of CNG. She stressed that public awareness, policy alignment, and coordinated implementation are essential for a seamless and inclusive transition.

She assured attendees that the Federal Government would continue to provide enabling policies, regulatory support, and investment incentives to accelerate the adoption of CNG.

The Programme Director and Chief Executive of Pi-CNG, Michael Oluwagbemi, praised the initiative’s economic impact, referring to gas as the fuel for industrialization.

He said, “Today we are changing the tide through President Bola Ahmed Tinubu.”

Oluwagbemi revealed that the initiative had already attracted $459 million in investments. He also highlighted the expansion of conversion centers, which grew from seven in five states to 153 centers across 23 states.

Folajimi Mohammed, Managing Director of Portland Gas Limited, applauded President Tinubu for spearheading the initiative and noted the Federal Government’s readiness to subsidize the costs.

He stated, “In terms of subsidising the cost, the Federal Government has identified a few people who they have given the free kits already, so they will make sure the conversions are free of charge.

“We know that the CNG conversion is pretty expensive, but through the Ministry of Finance Incorporated, under the Credit Course Scheme, there is a fund called CALM, which is for automatic conversion, light, and solar systems.”

He announced that the Onne Oil and Gas Zone would serve as a conversion center to expedite the adoption of CNG for trucks and cars operating within the area.

He added, “The drive for conversion to CNG has been very aggressive by the present administration. The drive has been spreading very fast. As of today, we are not having issues of conversion, but refilling, which we believe that the adoption has been very high.”

Regarding private sector involvement, he said, “Very soon, private stakeholders would be tackling the issue of refilling and it is going on very well. If you qualify for that scheme, they will give you the funds, almost like a form of a loan, over the time you will pay back.”

He urged people to trust the CNG initiative, emphasizing that it is here to stay. Mohammed also mentioned that Portland Gas had opened seven stations in Lagos and Abuja and had extended operations to Onne to accelerate adoption.

In his welcome address, Bamanga Jada, Managing Director and CEO of the Oil and Gas Free Zone Authority, commended President Tinubu for introducing bold reforms across various economic sectors.

Jada remarked, “One of His Excellency’s many reform policies is the Presidential CNG Initiative, an innovative and far-sighted programme introduced by Mr. President as a component of his palliative intervention to provide cheaper and cleaner fueling alternatives that will significantly lower energy costs in the country.”

He reiterated the authority’s commitment to fostering investments that align with President Tinubu’s goals for industrial growth and economic diversification.

Jada added, “In this regard, we have specifically designated two of our Free Zones at Liberty Oil and Gas Free Zone, Akwa Ibom State, and the Orashi Energy Free Zone in Imo State for gas and green energy projects, with a special focus on gas processing and renewable energy resource development projects.

“In the last 17 months under the Tinubu-led administration, OGFZA’s Liberty OGFZ has attracted FDI worth over USD$1 billion.

“More importantly, today’s event reflects the growing confidence that President Bola Tinubu’s Reform Agenda is receiving from both domestic and foreign investors alike, and showcases the diligent role that our Honourable Minister is playing in advancing Mr. President’s mandates, especially in promoting the adoption of Compressed Natural Gas as a cleaner, efficient and more environmentally friendly energy source.”

He concluded by acknowledging Nigeria’s status as Africa’s largest producer of natural gas, with over 209 trillion cubic feet of proven natural reserves.

He noted, “In recent years, the global energy landscape has undergone tremendous change. Faced with the dual challenges of increasing energy demand and urgent environmental concerns, we must seek solutions that are both efficient and sustainable.

“CNG stands at the forefront of this endeavour. It is a cleaner, more efficient alternative to conventional fossil fuels, and today, we take a significant step toward embracing its potential.”