Fuel crisis solution: How CNG can power Nigeria’s future

Nigeria’s recent fuel scarcity has revealed the fragility of the nation’s energy infrastructure, triggering widespread economic distress and revealing the pressing need for alternative fuel sources.

The crisis, which saw transportation costs surge has had a domino effect on various sectors of the economy. Businesses have faced operational disruptions, leading to inflated production costs, supply chain delays, and reduced workforce productivity. This stark reality has intensified calls for a more sustainable and reliable energy solution, with Compressed Natural Gas (CNG) emerging as a leading contender.

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Compressed Natural Gas presents a dual advantage: it is both economically viable and environmentally friendly. In a time when fuel prices are skyrocketing, CNG offers a lifeline by significantly reducing fuel costs.

Businesses and individuals transitioning to CNG can achieve up to a 60% reduction in fuel expenses, providing much-needed financial relief during these challenging times. This is particularly beneficial for sectors heavily dependent on transportation. For instance, according to Nature News, tricycles that have switched to CNG have reported 50% and 75% of fuel savings, while vehicles converted to CNG can reduce fuel costs by up to 40%.

Oluwatobi Shofowora, Manager of Corporate Planning and Strategy for Tetracore Energy Group, provides a comprehensive perspective on the benefits of CNG: “For companies operating fleets, the shift to CNG translates into significant cost savings and improved operational efficiency. It’s about marginal improvements here – we’re seeing transformative changes.

“Data shows businesses can reduce their fuel costs by up to 60% by transitioning to CNG. This is particularly crucial in a country like Nigeria, where fuel costs can make or break a company’s bottom line. However, the benefits extend far beyond just cost savings. CNG offers a cleaner burn, which means reduced maintenance costs for vehicles. We’ve observed that CNG-powered vehicles often have longer engine lives and require less frequent oil changes. This translates to lower overall operational costs and increased vehicle uptime.”

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Tetracore Energy Group has positioned itself at the forefront of Nigeria’s energy transition by championing CNG as a key component of the nation’s energy strategy. The company recently commissioned a new CNG facility in Atakobo Community along the Benin-Sagamu Expressway in Ogun State, with a capacity of 3.1 million standard cubic feet per day, expandable to 6.2 MMscf/d This facility is support gas availability along Nigeria’s Western-Southern corridor where some of the country’s biggest industrial clusters are located, aligning with Nigeria’s broader gas agenda and supporting President Bola Tinubu’s CNG initiative.

“Tetracore is deeply invested in Nigeria’s energy future. Our recent commissioning of the CNG facility in Ogun State is just one example of our commitment to driving the adoption of cleaner energy solutions across the nation,” says Shofowora “We believe that CNG offers a sustainable and economically viable path forward, and we’re proud to play a pivotal role in this transition.”

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Recognizing the transformative potential of CNG, the Nigerian government has launched several initiatives to support its adoption. These include infrastructure development aimed at expanding CNG refueling stations and conversion centers across the country, making CNG more accessible to both individuals and businesses.

Additionally, the government is offering tax incentives and subsidies to encourage the transition to CNG, further lowering the barriers to adoption. Regulatory support is also being strengthened to ensure a conducive environment for the growth of the CNG industry. These efforts collectively signal the government’s commitment to positioning CNG as a cornerstone of Nigeria’s energy future.

The recent fuel scarcity crisis has acted as a catalyst for change, highlighting the urgent need for alternative energy solutions in Nigeria. Compressed Natural Gas has stood out as a promising option, offering significant economic savings, enhanced operational efficiency, and environmental benefits. As the nation grapples with its energy challenges, the adoption of CNG could play a pivotal role in building a more resilient and prosperous Nigeria. By embracing this cleaner, more sustainable energy source, both individuals and businesses can contribute to a brighter, more sustainable future for the country.