The Kano State Investment Promotion Agency (KANINVEST) has signed a Memorandum of Understanding (MoU) with STATA Power Utility Nigeria Limited for the launch of a customized gas program in the state.
The $5 million project aims to reduce greenhouse gas emissions, create a cleaner environment, and provide job opportunities for the youth of Kano State.
At the MoU signing ceremony on Friday, KANINVEST Director General, Muhammad Nazir Halliru, hailed the initiative as a significant step towards environmental sustainability and economic growth. He explained that the program would involve the supply of Compressed Natural Gas (CNG) and the conversion of vehicles from petroleum-based fuels to CNG, addressing both the high cost of petroleum and its impact on commercial transportation.
“This initiative reflects the vision of this administration to foster a more sustainable environment, reduce greenhouse gas emissions, improve public health, and create jobs,” Halliru stated. He also highlighted that the gas supply would extend beyond vehicles to benefit industries and major companies across the state, boosting production and service delivery.
Implementation of the project is expected to begin within six months, following the establishment of CNG stations by STATA Power Utility Nigeria Limited. Halliru confirmed that the project has received approval from the Kano State Governor, with tax incentives granted to support this pioneering investment.
Salman Dantata, CEO of STATA Power Utility Nigeria Limited, expressed his excitement about the partnership, calling it “groundbreaking” and in line with global efforts toward cleaner energy. He noted that the initiative aims to reduce transportation costs, improve air quality, lower carbon emissions, and enhance energy efficiency throughout Kano State.
Dantata revealed that STATA’s total investment could reach $15 million over the next two years, which will fund the establishment of Liquefied and Compressed Natural Gas (LCNG) stations across the state. The company also plans to provide conversion kits and set up conversion centers at these stations. Additionally, STATA plans to introduce 5,000 solar-powered tricycles and 10 commercial vehicles within the next year.
The main gas station, with a capacity of 110 metric tonnes per day, will be located in the Tamburawa area of Kura Local Government Area. Smaller stations, each with a capacity of 2 metric tonnes, will be set up in key locations, including Dalladi Nasidi, Maiduguri Road, IBB Road, Shagari Quarters, Cotton Gingery, Sharada, and Bechi Quarters.
Dantata further revealed plans to expand the project to 20 stations within five years, creating over 300 direct jobs and 5,000 indirect jobs, primarily for Kano’s youth.
