Management of the Presidential Compressed Natural Gas Initiative, PCNGI, has signed a memorandum of understanding, MoU, with LNG ARETE to unlock the potential of the sector for improved transportation in Nigeria.
The Program Director/Chief Executive of the Presidential Compressed Natural Gas Initiative (PCNGI), Mr Micheal Olowagbemi, during the signing of the MOU, said they operationalised President Bola Tinubu’s goal to bring affordable transportation to Nigerians.
Arete Mini-LNG Project Investment Signing Ceremony Held at PCNGi, Abuja.
The official signing ceremony for the $6 million Arete Mini-LNG project investment took place at the PCNGi headquarters in Abuja on Friday.
This strategic investment will drive the expansion of Compressed… pic.twitter.com/wJqMwDInkl— PCNGI (@PCNGInitiative) April 4, 2025
Mr Olowagbemi said that to achieve this, it is important that they provide the raw material, which is the abundant gas available in the country, to the end user.
Olowagbemi said, “The constraint has always been how to not just produce it, but how to distribute it and how to get it to the final user in the various forms in which it can be used.
“The confidence that the Nigerian people have in Mr President and this program in the last one and a half years that we’ve launched, the Presidential CNG Initiative, the way they’ve embraced this journey of leveraging gas resources for transportation, as well as other critical sectors, have made a difference,” Mr Olowagbemi said.
He said the journey to signing the MoU is because Nigerians believed in the president’s vision and that with 30 of our 36 states having gas reserves, Nigeria should not be solely dependent on oil.
“Gas is cheaper, it is safer, and it’s more reliable. Nigerian people’s belief also meant that all across this country, especially in the far north, there has been increasing demand to be able to access gas to enable transportation in other sectors.”
He added that the previous and the present administrations have committed to moving gas from the region where it is primarily produced, which is the southern part of the country, to the rest of the country.
“Many industries across the north, from textile to agriculture to processing to manufacturing, will benefit hugely from this project. The logistics, of course, of moving goods from the north down to the south, food items especially, and processed and manufactured products will also be cheaper because of this project,“ he said.
Mr. Michael Olowegbemi stated that LNG Arete Ltd, having gone through various processes, including investment committees that partner with organisations like the Midstream/Downstream Gas Infrastructure Fund and putting up about $12 million (twelve million dollars), is now able to unlock counterpart funding from the Presidential Compressed Natural Gas Initiative.
The project director of LNG Arete, Hajara Pitan, expressed appreciation to President Bola Tinubu for his foresight in promoting the use of compressed natural gas for transportation and all stakeholders who ensured the MoU was finally agreed upon and signed.
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