January 25, (THEWILL) – The Kano State Investment Promotion Agency (KANINVEST) has signed a $15 million Memorandum of Understanding (MoU) with STATA Power Utilities Nigeria Limited to implement a customized gas programme aimed at boosting economic development and addressing environmental challenges in the state.
The agreement was signed on Friday at the KANINVEST headquarters in Kano, with the agency’s Director-General, Muhammad Nazir Halliru, describing the deal as a significant step toward creating a sustainable and environmentally friendly energy landscape in the state.
According to Halliru, the initiative will involve the supply of Compressed Natural Gas and the conversion of vehicles from petroleum-based fuel to CNG, thereby reducing greenhouse gas emissions, improving air quality, and creating job opportunities.
“This reflects the vision of this administration to create a conducive environment by reducing greenhouse gas emissions, ensuring a healthier and cleaner environment, and creating job opportunities.
The supply of gas will extend beyond vehicles to industries and major companies, enabling them to improve production and services by switching to CNG,” Halliru said.
He added that the project’s implementation is expected to begin within six months, following the establishment of gas stations and facilities in the state.
“We have secured the approval of His Excellency, the Executive Governor, for this huge investment. The location for the facilities has already been approved, and the company will enjoy additional incentives, including tax waivers, as a pioneer investor,” Halliru noted.
Speaking during the event, STATA Power Utilities’ Chief Executive Officer, Salman Dantata, described the MoU as a groundbreaking milestone that aligns with global trends toward cleaner energy and sustainable development.
“This initiative seeks to transition Kano State from traditional fuel sources to Compressed Natural Gas (CNG), which will reduce transportation costs, improve air quality, lower carbon emissions, and enhance energy efficiency. It is a significant step toward cleaner energy and economic growth in Kano,” Dantata said.
He disclosed that STATA plans to invest up to $15 million over the next two years to deploy LCNG (Liquefied to Compressed Natural Gas) stations across the state. Additionally, the company will set up conversion centers and provide conversion kits to facilitate the switch to CNG.
Dantata revealed plans to introduce 5,000 solar-powered tricycles and 10 motor vehicles for commercial purposes within a year, further reducing reliance on traditional fuels.
The flagship gas station, with a capacity of 110 metric tons per day, will be located in Tamburawa town.
Smaller stations with a capacity of 2 metric tons each will be strategically located at various points across Kano, including Danladi Nasidi, Maiduguri Road, IBB Road, Shagari Quarters, Cotton Gingery, Sharada, and Bechi Quarters.
The company also plans to expand its operations to 20 stations within five years, with the project expected to create over 300 direct and 5,000 indirect jobs for Kano’s teeming youth population.
“This project not only underscores our commitment to sustainable energy but also addresses unemployment and enhances industrialization in Kano State,” Dantata added.
Abdullahi Yusuf is a seasoned journalist, communicator and was previously the Deputy Editor-In-Chief and Zonal Manager, News Agency of Nigeria, NAN, Jos, where he retired on December 15, 2021
