The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has unveiled an ambitious plan to convert 100,000 vehicles to compressed natural gas (CNG) within 18 months. The initiative, launched in collaboration with the Presidential Committee on the Compressed Natural Gas Initiative (PCNGi) and Rolling Energy, aims to support small and medium enterprises (SMEs) and reduce transportation costs amid rising fuel prices.
Speaking at the inauguration of a CNG conversion and training center in Abuja on Friday, SMEDAN Director-General Charles Odii outlined the project’s dual focus on cost reduction and skills development.
“This new center is designed to convert vehicles to run on CNG, an affordable and environmentally friendly alternative to traditional fuels,” Odii said. “With its capacity to convert nine vehicles daily and a dedicated team of 20 technicians, the center will help SMEs reduce transportation costs and adapt to changing energy needs.”
He added that the center will train young Nigerians in CNG conversion, maintenance, and repair, equipping them with practical skills while opening up new business opportunities. SMEDAN has committed to converting 10% of the targeted vehicles at its centers.
“By adopting CNG, we are helping SMEs cut costs while promoting sustainable energy practices. This effort is particularly timely as businesses face rising fuel costs following subsidy removal,” Odii said.
In addition to the CNG initiative, SMEDAN is upgrading Industrial Development Centers nationwide to provide affordable tools and power tailored to the needs of small businesses.
Calls for Broader Renewable Energy Investments
While the initiative has drawn commendation, stakeholders are urging the government to expand its focus beyond CNG. Toks Omishakin, California’s Secretary of Transportation, lauded Nigeria’s move toward cleaner energy but advocated for long-term investments in renewable solutions.
“I see a tremendous opportunity for collaboration between California and Nigeria in exploring renewable energy solutions like solar, wind, and hydrogen,” Omishakin said.
Similarly, Toyin Zubair, Executive Vice-Chairman of the PCNGi, emphasized the importance of leveraging Nigeria’s abundant natural gas reserves to power vehicles and industries. “Nigeria has one of the largest gas reserves in the world. By using this resource locally, we can reduce costs and create a cleaner environment,” he said.
Mubarak Danbatta, CEO of Rolling Energy, highlighted the affordability and accessibility of CNG as a major advantage for SMEs.
“With less than ₦4,000, a vehicle can be fully fueled with CNG, compared to over ₦60,000 for petrol. This is a significant relief for businesses,” Danbatta said, adding that CNG is “not a business for the rich but for everyone.”
The initiative is expected to provide relief for SMEs struggling with rising operational costs while fostering sustainable energy practices across Nigeria.
