Investigation Uncovers Monumental Corruption in Tinubu’s CNG Initiative

Abuja, Nigeria — July 8, 2025 — A weeks-long investigation by Premium Times has revealed extensive corruption, insider profiteering, and black-market diversion of CNG kits within President Bola Tinubu’s Presidential Initiative on Compressed Natural Gas (PICNG)

Background & Promise of the Program

• Launched in 2023 following petrol subsidy removal, the PICNG aimed to ease transportation costs by converting 1 million vehicles to CNG.
• The first phase planned 10,000 free conversion kits for commercial entities like Uber, NURTW, Moove, and Kaduna State Transport Authority?
• Over ?45 billion was allocated for the Commercial Vehicle Conversion Incentive Programme (CV?CIP)?

Key Findings from the Investigation

1.     Black?Market Diversion

o   Reports reveal CNG kits worth over ?1 million being sold in WhatsApp groups for around ?350,000 by individuals with alleged government links.

2.     Conflict of Interest & Insider Profiteering

o   A high-ranking PCNGI official reportedly owns a significant stake in Hi?Grade Energies Ltd., a CNG conversion firm incorporated shortly after the initiative’s start, raising red flags about self-enrichment?

3.     Strain on Private Sector Operators

o   C?&?L Smart Energy Solutions and other private businesses lament being sidelined, highlighting policy inconsistencies and internal sabotage that favor insiders

4.     Overpriced Kits & Financial Mismanagement

o   Discrepancy in kit pricing: government claims value ??1?million, yet they're sold for ~?350,000—suggesting inflated pricing or misappropriation of funds?

Official Responses & Counterclaims

• PCNGI Defense:
• The initiative has referred suspicious cases, including those involving C?&?L Smart Energy, to the Economic and Financial Crimes Commission (EFCC). It accuses suspended vendors of initiating a smear campaign and asserts continued commitment to transparency?
• Vendor Rebuttal:
• Charles Goriola Yakub of C?&?L Smart, whose firm was suspended in December 2024, branded the accusations as politically motivated. He maintains he invested personal funds, predating the initiative's launch, and claims advocacy is against internal profiteering, not Tinubu

Wider Implications & Calls for Action

• Market Impact:
• Stakeholders like Sina Kawonise warn that unchecked kit diversion undercuts private-sector viability and adoption goals. He estimates less than 50% of pledged conversions reached legitimate operators?
• Public Accountability:
• Industry voices are urging President Tinubu to initiate a full audit of finances, governance, and distribution channels. Recommendations include stringent oversight of conversion centers and partnerships with independent private entities

What's Next?

• EFCC Probe Pending:
  Investigations are reportedly underway into illegal sales by C?&?L and other suspicious dealings, with potential legal repercussions for involved parties?.
• Government Oversight Measures:
  Calls are rising for stricter monitoring, price controls, and transparent procurement processes to align the initiative with its original objectives.

Why It Matters

• Economic Strain:
  Nigeria’s broader initiative to reduce costs and emissions heavily relies on the success of PICNG. Mismanagement undermines both environmental and financial gains.
• Credibility Concern:
  Amid broader anti-corruption rhetoric by Tinubu’s administration, revelations of insider profiteering threaten public trust in reform campaigns.
• Energy Transition Risks:
  If unresolved, corruption could stall Nigeria’s shift away from petrol, prolong energy insecurity, and limit private investment.

Conclusion

This investigation raises critical questions about execution and governance within one of Nigeria’s flagship energy reforms. The coming weeks will reveal whether the government enforces accountability—through EFCC action, audits, and reforms—or allows corruption to derail the program.