As Nigeria battles with rising fuel costs and seeks sustainable solutions, the shift to Compressed Natural Gas (CNG) is emerging as a viable alternative. With its significant natural gas reserves, Nigeria faces the challenge of reducing its reliance on expensive petrol while promoting a cleaner energy source to drive economic growth and alleviate transportation costs, MOYOSORE SALAMI writes.

Mr. Yekini Akinsanya is a driver with National Union of Road Transport Worker (NURTW). His story has gone viral, as he is the first person to narrate his experience with Compressed Natural Gas (CNG). Yekini drove his car from Agidingbi in Lagos to Ibadan with a #CNG filled gas of ₦1,737 as against 25 litres petrol. Whether this was a PR stunt remains to be seen, as he gleefully talked about his experience on the video.

Meanwhile, on Thursday, three people sustained various degrees of injuries following an explosion at a Compressed Natural Gas (CNG) refilling station in Benin, Edo State. The incident occurred at NIPCO filling station in Aduwawa, along the Benin-Auchi Expressway.

The explosion reportedly happened while filling CNG into the newly installed gas tank of an Audi vehicle, which was brought to the station for testing by the driver and the technician who installed the tank.

For decades, Nigeria’s transport landscape has been dominated by petrol, a commodity that, until the recent subsidy removal, provided affordable fuel for the nation.

This action has invariably led to an increase in petrol prices, with its ripple effect across all sectors, especially transportation. Apparently, with the current cutthroat price of petrol, CNG is the wise option for fuelling vehicles in the present situation in the country. It is seen as practical solution to high cost of fuel. It is also considered a cleaner fuel that helps reduce emissions, making it a more environmentally friendly option. Its lower carbon footprint also supports the country’s commitment to global climate action and the Sustainable Development Goals (SDGs).

CNG is derived from compressing methane down to less than 1 per cent of its volume. This is done by storing natural gas at baseline temperature and high pressure. This compressed state allows for a higher energy density, making it an excellent fuel option for various applications, especially in the transportation sector.

The Guardian checks revealed that CNG, however, is not a new concept in Nigeria’s energy and transport ecosystem. In 2010, Nigeria Independent Marketing Company (NIPCO) launched the country’s first CNG for vehicular and sundry applications in Benin City. However, with the removal of the petrol subsidy in 2023 by President Tinubu and the fluctuation in global oil prices, the use of CNG has gained more traction.

However, the establishment of the Presidential Compressed Natural Gas Initiative (Pi-CNG) in 2023 has made it an option that should be considered immediately, as it could assist Federal government in achieving its goal of one million CNG vehicles by the end of 2027. The establishment also makes it easier for government to finance the 200,000 (two hundred thousand) new CNG buses and tricycles, as well as the establishment of conversion centres, refuelling and virtual gas distribution programme.

The Guardian gathered that government had already partnered with several stakeholders in the transportation and energy sector such as Dana Motors, Portland Gas, Innoson Motors, The Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Nigerian National Petroleum Company Limited (NNPCL) and a host of other agencies to assist it in achieving the goal of donating locally made CNG buses, offering free and subsidised CNG conversion to transporters.

It was learnt that in December 2023, the Federal Government, through the Ministry of Finance, issued a circular, titled, ‘Fiscal Incentives for the Presidential Gas for Growth Initiative’ granting import duty and Valued Added Tax (VAT) waiver for all CNG auto vehicles and kits including the equipment used to manufacture CNG vehicles in Nigeria. This is to encourage the expansion of CNG vehicles in Nigeria.

Already, the Federal Government has an official website where users can convert their petrol-powered vehicles to CNG and select a pay-later option for the conversion costs. This payment plan allows drivers to convert their vehicles now and settle the costs later through monthly instalments at competitive rates.

While many petrol-powered vehicles can be converted to run on CNG, not every engine is ideal for this transition. Passenger cars, light commercial vehicles, and certain types of buses are usually suitable for conversion. However, high-performance vehicles and older engines may require special attention. Vehicles less than 10 years old with modern systems are generally the best candidates for CNG conversion. On the other hand, high-powered or turbocharged engines might not be compatible.

Petrol cars can be fully converted to run on CNG through the addition of key components such as a storage cylinder, pressure regulator, CNG tank, and a heating system. However, in contrast, diesel engines work differently — they can only switch partially, operating on a blend of diesel and CNG, typically around 50 per cent of each fuel.

To show its commitment to the CNG transition project, government recently donated 64 CNG buses to the Nigerian Labour Congress (NLC), the Trade Union Congress (TUC), and the National Association of Nigerian Students (NANS).

Minister of Finance, Wale Edun, said the buses’ distribution fulfilled President Bola Tinubu’s pledge to support Nigerians with reasonably priced and effective transport following the elimination of fuel subsidies under PCNGi. He explained that the goal of this programme was to encourage macroeconomic growth while easing the burden on the weak and impoverished.

Edun added that the buses would drastically lower transportation expenses in the nation when they are used for commuter service, for a more economical and effective public transportation system. He noted that the goals of the programme are to assist macroeconomic reforms that would put the nation on the path to economic stability and lessen the burden that befalls the poor and vulnerable.

The Minister went on to say that the symbolic transfer of 64 buses on the eve of Nigeria’s National Day signifies the start of a larger nationwide rollout, with the initial goal being the distribution of over 500 CNG buses and 100 electric cars.

In addition, he said that by using its energy resources for industrialisation, Nigeria’s CNG project supports the country’s commitment to greener energy and another significant turning point in President Tinubu’s policies.

According to the minister, workers’ interests have been prioritised, as the gift is one way of providing them with more affordable mobility options to combat rising costs. The cost of fuel for cars running on CNG is roughly one-third that of gasoline-powered cars.

He said drivers may now fill up their tanks for as little as N15,000 rather than N50,000 or more. It’s CNG now. It’s going to be tomorrow. Despite its potential, several challenges hinder the widespread adoption. One of such hurdles is the lack of adequate infrastructure. There is also a need for a widespread network of CNG refueling stations and pipelines for ensuring the convenience and accessability of CNG for consumers.

Stakeholders in the transport sector said for CNG to be a practical alternative, the government and private sector must invest heavily in expanding the refueling infrastructure. This would ensure that CNG is not only an affordable option, but also a convenient one available to motorists across the country.

They noted that until refueling stations are more widely distributed, the viability of CNG as a national solution remains in question. But PCNGi’s Chief Executive and Programme Director, Michael Oluwagbemi, said the organisation has developed over 125 conversion centres out of its original seven since its founding a year ago. He said more than $175 million has been invested in the industry, and 12 new mother stations have been put into service and another 75 are being built.

There is an increase in technician training, with 40 new technicians being trained each week. More than half of the 34,000 conversion kits requested have already been delivered.

According to him, there are 53 locations across eight states where cars are converted. “The FCT and all 36 states would get additional centres,” he added.
Despite these efforts, the scale required to make CNG a viable nationwide solution is monumental. Expanding CNG stations, retrofitting vehicles, and training technicians are all critical components that require substantial investment and planning.

While the Federal Government has touted CNG as a cheaper fuel alternative, the initial costs associated with the conversion may deter many motorists and transport operators from making the switch.

However, it may be argued that this is more of a public relations move than a substantive policy shift. Nigeria’s mass transit system has long been plagued by inefficiencies, inadequate infrastructure, and a lack of comprehensive planning.

The government’s pledge to roll out 500 CNG buses and 100 electric vehicles nationwide may provide temporary relief, but it may fall short of addressing the systemic issues within the transport sector.

According to industry experts, the cost of retrofitting a standard vehicle to CNG is estimated between N250,000 or more, depending on the engine type and conversion specification. This upfront cost, although a long-term solution for reducing fuel expenses, may be prohibitive for lower-income earners who are already struggling with rising living costs.

The broader rollout of 500 buses, though significant, still seems inadequate to reverse the macroeconomic trends that have gripped the nation since the subsidy was removed.

A mechatronics engineer, Stanley Ugochukwu, explained that the move behind Nigeria’s adoption of Compressed Natural Gas (CNG) technology for vehicles is driven by the need for cleaner energy and a reduction in greenhouse gas emissions. However, he pointed out challenges in the country’s mechanical engineering sector has made large-scale conversion and maintenance of CNG vehicles difficult.

“Our country’s mechanical engineering sector is not adequately prepared to handle large-scale CNG conversion due to several gaps, these challenges, include limited technical expertise, inadequate infrastructure, insufficient equipment and tools, and a lack of clear standards and regulations, Nigeria’s dependence on imported components, human capacity shortages, and limited funding for research and development.”

According to him, currently, the scarcity of CNG conversion centers across the country makes it difficult for vehicle owners to access the service, noting that there are a limited number of certified CNG-trained technicians and the necessary equipment for proper system diagnostics.

He further emphasised that all Nigeria CNG components used for vehicle conversion are imported, adding that local manufacturing is not yet fully developed to meet the demand.

To address these issues, he suggested a multi-pronged approach. “Even if people wanted to convert their vehicles, the few centers available limit their options and to carry out the conversion, you need to be trained, even if you’re a certified mechanical engineer. We need to collaborate with international experts for training, develop specialised CNG centers, invest in modern equipment, and encourage local manufacturing. Over time, this can lead to the indigenous production of CNG components.”

Creating awareness to educate citizens on CNG is another key factor. He said many Nigerians still have little knowledge of CNG and its benefits which will go a long way in fostering acceptance.

Ugochukwu noted that addressing the gaps in Nigeria’s mechanical engineering sector would require coordinated efforts from both the government and private sector and key stakeholders such as Nigerian Society of Engineers (NSE), the National Automotive Design and Development Council (NADDC), the Nigerian Content Development and Monitoring Board (NCDMB), the Ministry of Petroleum Resources, and private sector players such as Oando and Total Energies must be involved in overcoming these challenges.

“We are not there yet, but I strongly believe that we can overcome the challenges hindering large-scale CNG vehicle conversion and maintenance. With more centers, widespread awareness programs, and properly trained mechanical engineers, Nigeria can meet its CNG goals.”

According to him, several measures must be taken to ensure the successful implementation of CNG technology in Nigeria, he said: “Since this conversion is hard to implement at once, a phased approach allows for a gradual and systematic rollout of CNG conversions, focusing on high-impact areas first.
“Most of the vehicles on the road are for public transportation, so converting public buses and taxis can significantly reduce emissions and benefit a large number of people. Converting all government vehicles sets a positive example and demonstrates a commitment to cleaner energy. For private vehicles, the government can offer incentives for private vehicle owners to convert, which can encourage wider adoption.

“I checked the average cost of converting a vehicle to CNG, and it’s around ₦300,000 to ₦500,000. This is expensive! There should be subsidies and tax breaks. Government incentives can reduce the financial burden on individuals and businesses. Leasing or hire-purchase agreements can make conversions more accessible.

“Expanding CNG refueling infrastructure is critical. Increasing the number of refueling stations makes CNG more practical for vehicle owners. Imagine coming to Lagos from Port Harcourt just for CNG conversion—funny, right? The fact that the refueling stations are not everywhere increases range anxiety. Drivers will be more confident in using CNG vehicles, knowing refueling options are readily available. Also, expanded infrastructure encourages more people to convert to CNG.

“To address these gaps, we need partnerships with private sector players, international organisations, and local governments. The strategic location of refueling stations is crucial, focusing on high-demand areas like major highways and urban centers. We also need standardisation to ensure consistency in infrastructure design and operations, along with training and capacity building to develop local expertise in CNG infrastructure development and maintenance.

“The sustainability of CNG conversion in Nigeria depends on various factors. We must invest in local manufacturing of CNG components, develop indigenous technical expertise, expand refueling infrastructure, and implement favorable policies and regulations. Encouraging private sector investment and launching public awareness campaigns will also be key.

“CNG technology can play a significant role in Nigeria’s transition to cleaner energy by providing a cost-effective and environmentally friendly alternative to traditional fuels. By leveraging Nigeria’s abundant natural gas reserves, CNG can reduce greenhouse gas emissions by 20 to 30 per cent and decrease air pollution. Key engineering innovations that could drive this shift include advanced CNG engine designs, optimised fuel injection systems, and integrated waste-to-energy solutions using biogas and renewable natural gas.

“There are also improvements in CNG storage and transportation, like enhanced cylinder designs and optimized logistics, which will increase efficiency. The development of standardised and affordable CNG conversion kits will facilitate widespread adoption. We can also integrate CNG with renewable energy sources, such as solar and biogas, to create a hybrid energy solution. Implementing smart grid and energy management systems will optimize CNG distribution and consumption.

“To achieve national-scale implementation, Nigeria must invest in infrastructure development, promote public-private partnerships, and establish favorable policies and regulations.” On his part, Executive Manager at AutoclinicNG, Tunde Onakoya, explained why CNG could be a game-changer in the current energy transition.

“CNG is a low-hanging fruit when it comes to adopting cheaper and cleaner energy, unlike electric vehicles, which require significant infrastructure and investment, most vehicles currently on the road can easily be fitted with CNG kits.

“We are the eighth largest holder of confirmed natural gas reserves in the world, with about 10 times more natural gas than crude oil. The shift to CNG is not just sustainable but practical, given that we don’t need to import gas. It’s available locally and can be distributed without the impact of foreign exchange.”

For many Nigerians, the fear of CNG’s safety is a significant barrier to its adoption. Onakoya emphasised that these concerns are largely unfounded, noting that CNG is safer than petrol.

“CNG cylinders are built with walls up to seven millimeters thick, far more robust than petrol tanks, which can easily be punctured, it is also lighter than air, meaning that if there’s a leak, the gas dissipates quickly, reducing the risk of explosion.”

While Lagos has seen an increase in CNG refilling stations, with the number rising from one to seven since May, other parts of the country still lag. In Ibadan, for instance, only one refilling station is currently operational, though Onakoya revealed that three more are expected to come online soon.

However, the limited number of vehicles running on CNG is slowing down investment in refilling infrastructure. He emphasised that despite the limited number of refilling stations, the demand for CNG remains low. This, he explained, presents a challenge for investors considering new stations, as the installation cost stands at around half a million US dollars per station.

Onakoya also pointed out that the high cost of converting vehicles to CNG adds to the problem, as various factors such as the vehicle’s engine type and the specific CNG kit required significantly influence conversion costs despite the government has announced incentives for duty-free importation of these components

“All CNG components are imported, making them susceptible to foreign exchange fluctuations, I am yet to meet anyone who has benefited from these duty waivers.” Despite these challenges, Onakoya noted that CNG’s potential would revolutionise Nigeria’s transport sector.

“At about 230 naira per cubic meter, CNG is far cheaper than petrol, which currently retails at over a thousand naira per liter. This could significantly reduce transportation costs, which in turn would help bring down the cost of goods and services.”

Also speaking, the Team Lead, Evrytn CNG, Anne Obode, said though the adoption of CNG is not sufficient alone to alleviate the financial strain on the average Nigerian but would offer significant savings and a viable long-term solution for the country’s transportation woes. Obode noted that the increase in fuel prices contributes directly to hardship, as the cost of transportation critically influences economic productivity.

“Movement is essential, it is difficult for a country to thrive when people can’t travel affordably, by adopting CNG, Nigeria could not only lower fuel prices but also enhance the overall transportation landscape. She explained that with an estimated 200 trillion cubic feet of natural gas reserves, Nigeria is in a unique position, unlike PMS; CNG does not need to be imported.

According to her, public perception of CNG would evolve. “Initially, people were afraid of explosions associated with Liquified Petroleum Gas (LPG), but as adoption increases, so does acceptance and what people don’t know is that it is safer than LPG, if released, it disperses and evaporates quickly, minimizing risk.”

The Commercial Manager of Anoh Gas Processing Company (AGPC), Gbenga Owolabi, said the adoption of Compressed Natural Gas (CNG) is a viable alternative to Premium Motor Spirit (PMS) in Nigeria. Owolabi highlighted the numerous benefits of CNG, including its cost-effectiveness, environmental advantages, and potential to stimulate job creation.

“CNG is a promising initiative that can significantly reduce the financial burden associated with PMS costs.” He stressed that CNG is not only cheaper than PMS but also more effective in terms of coverage and environmentally friendly, emitting less carbon into the atmosphere compared to PMS and other fossil fuels.

Owolabi pointed out that gas serves as a transition fuel from fossil fuels to renewable energy, offering sustainability benefits that could greatly enhance Nigeria’s economy. “With the government’s ongoing efforts, I am optimistic that CNG will have a lasting impact,” he said.

The Commercial Manager further explained that using CNG as an alternative energy source for industrial purposes could significantly lower operational costs; especially those associated with diesel and PMS and create jobs, particularly, in the vehicle conversion sector, which could provide new opportunities for the youth.

“This development is one that I encourage everyone to embrace, citing successful implementations of CNG in other African countries as evidence of its viability in Nigeria.”

To facilitate the transition, Owolabi called for the establishment of adequate CNG mother-and-daughter stations to meet the population’s needs. He also canvassed the deployment of CNG cascades in strategic locations and along major roads to ensure easy refueling for vehicles in both urban and rural areas.

However, he acknowledged that the transition from PMS to CNG presents various technical and financial challenges that differ by vehicle type, including model, engine capacity, manufacturer, and size.

The road ahead for CNG adoption in Nigeria is long, but with proper government support and increased public awareness, it could offer a more sustainable and affordable future for the country’s transport system.