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Minister of Steel Development, Shuaibu Audu
The Minister of Steel Development, Shuaibu Audu, has disclosed that plans are underway to build one of the Compressed Natural Gas hubs in the Ajaokuta area of Kogi State.
He said that the ministry is on the verge of presenting a proposal to President Bola Tinubu for the establishment of an Industrial Park within the Ajaokuta environment, which will also host a CNG park and a free trade zone.
The minister made this known in a statement signed by the Head of Press in the Ministry of Steel Development, Salamatu Jibaniya, on Thursday in Abuja.
Audu further praised Tinubu’s CNG Initiative, highlighting the launch of the pilot Conversion Incentive Program and the transfer of CNG buses to transporters in Kogi State.
He said that the ‘Renewed Hope Agenda’ of Tinubu has been brought to their doorstep, noting that the CNG initiative of Mr President seeks to reduce the cost of transportation by over 40 per cent to cushion the impact of the removal of fuel subsidy.
He stated, “Mr President said at his Independence Day speech that because Nigeria spends over billions of naira annually on fuel subsidy, Nigeria was on the brink of an economic collapse, and therefore he needed to do something very quickly, which was why petroleum subsidy was removed.
“There are some challenges that have come with that, which is the high cost of food prices, and Mr. President has told all of us that he is doing something to reverse that trend to ensure that prices of food come down quickly, one of which is the provision of CNG Vehicles to Nigerians.
“Mr President has mandated that we should have one million CNG vehicles and/or conversions, and it needs to in place before the end of 2025. So, one million vehicles will be converted from petrol to gas in the next year, and this is very significant.”
He added, “As the Minister of Steel Development, I want to tell you some of the benefits of this CNG conversion site and the critical role Ajaokuta plays in that light. Ajaokuta is a gas hub for Nigeria. There are gas lines passing from Warri all the way to Ajaokuta, from Ajaokuta to Kaduna and Kano, meaning that there are billions of cubic feet of gas that are being transported from Ajaokuta to other parts of Nigeria annually.”
He said they are taking a proposal to the President to declare Ajaokuta an industrial park that will also have a CNG park, which will be one of the CNG hubs in Nigeria.
He explained that instead of having most CNG conversion centres and CNG parks outside Kogi State, Ajaokuta already has the necessary land, gas, and facilities for conversion kit production.
The industrial park, he noted, will attract steel companies to Ajaokuta, making everything needed available within the environs.
“So, the Renewed Hope Agenda of President Bola Ahmed Tinubu is here and will turn around the economy, therefore, the desire of Mr. President to grow the economy by $1tn by 2030, and we will achieve that by the special grace of God,” Audu stated.
The Kogi State Governor, Ahmed Ododo, said that the CNG initiative is a significant milestone in the ‘Renewed Hope’ Agenda of President Bola Ahmed Tinubu, thanking the President for the initiative, which aims to reduce reliance on petrol, which would in turn alleviate the sufferings of the people.
Ododo, who was represented by the Deputy Governor, Joel Salifu, pledged the commitment of the state to the project, with a promise to train 250 youths in CNG conversion and empower them to enable them to key into global technologies.
On his part, the Program Director/Chief Executive of the P-CNGI, Michael Oluwagbemi, said that the P-CNGI chose Kogi for its inaugural launch because the state beyond being a confluence state of water bodies is also significant in the transportation system as a link between the north and other parts of the country, and also hosts an important gas hub.
He said that the event was not designed just to reduce transportation fares for commercial drivers or fulfil Mr President’s promise to ensure that transporters get their vehicles and tricycles converted for free, but also an opportunity for Nigerians to benefit from the abundant resources of the country, urging everyone to key into the transformative initiative of the President.
