How CNG can sustainably drive a greener Nigeria
The introduction of compressed natural gas (CNG) in Nigeria could have a significant impact if efforts are concentrated on transitioning haulage vehicles, which are major contributors to greenhouse gas emissions in the transport sector to run on gas instead of diesel. KINGSLEY JEREMIAH reports on this development and the efforts being made by indigenous companies such as Gasco Marine.
In the absence of functional railways and pipelines, road transportation has been the dominant mode of transporting goods and people in Nigeria. Over the years, most automobiles in Nigeria rely heavily on fossil fuels. When looking at the environmental footprint of this development, the transport sector alone accounted for 24 per cent of Nigeria’s GHG emissions in 2020. Without concerted efforts, there are indications that this may increase by up to 50 per cent before 2035.
The Nigerian Nationally Determined Contribution (NDC) and the Energy Transition Plan (ETP) are tailored towards reducing Green House Gas (GHG). The NDC goal is to achieve 25 per cent and 80 per cent adoption of Compressed Natural Gas (CNG) vehicles in 2030 and 2050 respectively. The aim of the NDC is 21 per cent reduction in GHG emissions by 2050 and ETP is targeting 92 per cent from the transport sector.
For this to happen, NDC will achieve 25 per cent adoption of CNG vehicles by 2030, increasing it to 80 per by 2050. The ETP targets a modest two per cent adoption of electric vehicles (EVs) and one per cent for hybrid vehicles by 2030, with a significant rise to 60 per cent and 20 per cent respectively by 2050. Hybrid vehicles operate using both gasoline and electricity as fuel sources.
Already, major urban centres like Lagos and Abuja are faced with severe air pollution, considering the country’s poor transportation system where mass transportation is still difficult to achieve. The multiplier effect extends beyond these cities, affecting communities across the country.
In the face of escalating global concerns about climate change and environmental degradation, Nigeria stands at a critical juncture where, even if fossil fuel would play a critical role in the short and medium terms, concerted efforts are required to transition to cleaner energy. Given the current high cost of fossil fuel in Nigeria, adoption of CNG presents a promising opportunity for Nigeria to align with this global shift.
CNG is a cleaner-burning fuel that produces significantly fewer emissions than traditional fossil fuels like diesel and Premium Motor Spirit (PMS). This is primarily because CNG combustion results in up to 30 per cent less carbon dioxide emissions compared to diesel and gasoline. This substantial reduction in greenhouse gases can play a crucial role in mitigating the environmental impact of Nigeria’s energy consumption. Improved air quality would lead to better public health outcomes, reducing the incidence of respiratory illnesses linked to pollution.
Economically, CNG offers cost advantages. In addition to being 30 per cent to 40 per cent cheaper than alternative liquid fuels (PMS and Diesel), Nigeria possesses abundant natural gas reserves, positioning the country to utilise a domestically available resource rather than relying on imported refined petroleum products. This not only ensures energy security but also shields the economy from the volatility of global oil prices. Consumers and businesses can benefit from the lower costs associated with CNG, fostering economic resilience.
The advantages of CNG extend across various sectors, including transportation, power generation, and industrial applications, making it a versatile and reliable choice for the country’s diverse energy needs. By promoting CNG use, Nigeria can leverage its own natural resources, ensuring energy security and economic resilience and reducing the country’s vulnerability to global oil price fluctuations.
As important as this is, for progress, most players had noted the need for fiscal incentives for CNG to be motivating, a reason the growth of the infrastructure has not moved as fast as it should be. At the current growth rate, it may take the country more than a year to double the number of stations in operation. The Guardian learnt in Abuja that some of the much-hyped retail outlets that should be dispensing CNG do not have the product while some outlets that have are crowded. While this is forcing motorists to spend about six hours in queues daily, it shows that demand for the product is growing more than supply.
As Nigeria looks to a cleaner future, a key player and wholly indigenous CNG company with years of proven expertise, Gasco Marine, stands at the forefront of the nation’s clean energy revolution, driving innovation and infrastructure development in the CNG space. With commitment to providing cleaner fuel solutions, Gasco Marine has embraced CNG as a key sustainability strategy, focusing on displacing diesel in the haulage sector.
Currently, trucking contributes about 27 per cent of the country’s GHG, especially in the transportation segment and Gasco believes that investment in CNG infrastructure and supply networks would create a shift from diesel to CNG, a change that could dramatically reduce vehicular emissions while also reducing the current high cost, which is often transferred to consumers.
Considering the gap in awareness, the organisation has also noted its commitment to educating and working alongside fleet operators and industry partners to ensure a smooth transition. The focus on CNG for haulage distinguishes the approach of the organisation, especially given its expertise and a strong track record in clean fuel solutions for high-emission industries.
The organisation is also expected to expand Nigeria’s CNG refueling network, aiming to make CNG an accessible alternative. This expansion facilitates a greener transportation sector and supports Nigeria’s broader environmental objectives. The Nigerian government has also shown increasing commitment to transitioning towards renewable and cleaner energy sources. By positioning itself as a leader in CNG adoption, the company said it aligns with Nigeria’s national energy and environmental goals, with a vision that extends beyond fuel provision to creating a more sustainable future for Nigeria’s economy and people.
Despite the steps taken by organisations like Gasco Marine, most stakeholders are worried that unless projects like the Ajaokuta-Kaduna-Kano pipeline project and OB3 are in place, the CNG initiative may only thrive in the western part of Nigeria, warning that the more people embrace it, the longer the queues may become.
An e-hailing driver, Victor Okorowa, sees the CNG initiative as a game-changer in business profitability but noted that a major limitation is its unavailability, which has made a mess of the prospect.
“Gas is good but most stations are not selling. Most times the retail outlets don’t have gas,” Okorowa said. Director of the Presidential CNG Initiative (PCNGI), Michael Oluwagbemi, disclosed that since the launch of the Presidential CNG Initiative, over 100,000 vehicles have been converted from petrol to CNG/biofuel.
He said investors were ramping up the development and deployment of CNG infrastructure, with over $200 million already invested across the value chain.
An industry expert, Joseph Zone, said there is a lack of comprehensive infrastructure for CNG deployment, adding that while gas has been used globally for over 30 years, Nigeria is only exploring it at a time when many countries are shifting to even cleaner energy.
He attributed the slow investment to what he called the “docility of political leaders and a stubborn economic mentality”, adding that Nigerians must now view CNG as a new technology even though it is not.
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