The strategic importance of Nigeria’s CNG initiative

If properly followed up, the deal signed by the Presidential Compressed Natural Gas Initiative (PCNGI) with 75 conversion firms towards reducing reliance on petrol to power vehicles can make a difference between the galloping inflation afflicting Nigerians now, and a stable economy under which citizens can count their blessings. The initiative is a scheme which seeks to expand the use of gas for fuelling vehicles in Nigeria; and the signing of separate deals with the 75 conversion firms nationwide, is part of the government’s policy of reducing addiction to petrol and diesel. The action should have taken effect much earlier, considering the current high prices of basic goods and the resultant effect on Nigerians’ cost of living. It is a programme that needs to be given serious attention to ensure both safety and effectiveness.

The country’s move towards the adoption of Compressed Natural Gas (CNG) is a step in the right direction, though late; deserves more than mere rhetoric.

In 2023, the Federal Government approved the presidential CNG Initiative to provide cheaper and cleaner fueling alternatives for the citizens.

With the agreements now covering eight states and expansion set for nine additional states in eight weeks, the Chief Executive Officer of the organisation, Mr Michael Oluwagbemi, said that in the last 45 days, the office has been able to distribute over 6,000 to 7,000 conversion kitsacross Lagos, Ogun, Oyo, Delta, Kogi, Nasarawa, FCT, and Kaduna states. Later this month, he hoped to add nine more states, including Kwara, Ekiti, Akwa Ibom, Abia, Rivers, Enugu, Kano and Niger. This is expected to enthrone a cleaner, more efficient, and economically viable future for the country’s transport sector and indeed the economy.

Oluwagbemi pointed out that this will enable the government to hit the goal of 150,000 direct conversions in the next one year, explaining that there were only seven conversion centres in Nigeria when the scheme started.

Indeed, the successful implementation of this initiative is critical to Nigeria, especially now that President Bola Tinubu has fully deregulated the downstream oil sector. The country’s overdependence on petrol and diesel has continued to impact badly on its economic stability with the attendant challenges of energy security and the consequences of environmental pollution.

The use of petrol and diesel contributes to Nigeria’s greenhouse gas (GHG) emissions, thus accelerating climate change and aggravating global warming risks such as rising temperatures, sea levels, and extreme weather events. The CNG could pave the way for a new era of sustainable energy use in transportation.

This CNG initiative is coming at a time when Nigeria and Nigerians are battling a serious energy crisis as depicted in the continuous surge in the prices of Premium Motor Spirit (PMS) otherwise known as petrol.

Data from the National Bureau of Statistics (NBS) revealed that the average price of petrol across Nigeria took an upward increase of 32.5 per cent from August 2023 to the same month in 2024. Today, the Nigerian National Petroleum Company Limited (NNPCL) has in the past month, increased price of fuel by about 15 per cent, as the government fully deregulates and adopts the provisions of the Petroleum Industry Act.

Painfully, this skyrocketing fuel price has affected every home in Nigeria and put prices of goods and services above board and beyond the reach of ordinary Nigerians, prompting widespread criticism.

However, the shift to CNG aligns with Nigeria’s broader goals of economic resilience, energy independence, and environmental sustainability. By reducing reliance on traditional fossil fuels, which are mostly imported, CNG could save Nigeria billions yearly and foster job creation through the development of CNG infrastructure.

Its lower carbon footprint also supports the country’s commitment to global climate action and the Sustainable Development Goals (SDGs).

With abundant natural gas reserves and a growing emphasis on reducing carbon emissions, CNG presents a viable alternative to traditional fossil fuels. The need to consider alternative sources of fuel, primarily CNG and electricity for electric vehicles, has become more important than ever.

With its lower GHG emissions compared to diesel and petrol, CNG offers a compelling solution. The establishment of more CNG refuelling stations and mother stations, along with advancements in compression technology, will facilitate the efficient distribution and utilisation of CNG. This infrastructure growth will also support the expansion of CNG-powered vehicles and industries, further driving demand.

According to analysts, the future of CNG in Nigeria is filled with opportunities. They submitted that the potential for exporting CNG to neighbouring countries also presents an avenue for economic diversification and increased foreign exchange earnings. Nigeria’s strategic position in West Africa and its abundant natural gas reserves position the country as a potential leader in the regional CNG market. The CNG project is however threatened by mistrust and poor infrastructure. There are also concerns about its safety, which the promoters have done nothing or little to address just as the conversion cost is unaffordable to an average motorist.

Just yesterday, there was a viral video of a CNG vehicle that exploded at a NIPCO station in Benin, Edo State. The Presidential CNG Initiative claimed that the vehicle was illegally modified, adding that a close examination of the cylinder in question in Benin City shows it was welded and modified and not approved for use for CNG. The likelihood of similar incidents happening is imminent without an intentional campaign to enlighten users about the risks and benefits of CNG.

As the nation strives to diversify its energy sources and reduce its environmental impact, CNG stands out as a crucial component of this transition. With continued investment in infrastructure, supportive government policies, and growing awareness of its benefits, CNG can significantly contribute to Nigeria’s economic development and environmental sustainability.

President Tinubu and his team must ensure that this project does not fail. Everything required for successful implementation, especially infrastructure should be put in place across the country. Nigeria can borrow from experienced countries such as India, which has one of the largest CNG networks in the world; Brazil, where CNG is part of a diverse energy mix as the country has successfully integrated it into its transport sector, particularly in urban areas where environmental regulations are stricter.

Further, there should be a massive setting up of CNG sites across the country, not just in Lagos and Abuja. It is heartwarming that NNPC is planning to set up three LNG stations and over 100 CNG sites, but there should be irresistible incentives for more private investments, given the urgency.

Besides, the range limitation of CNG vehicles and the need for frequent refuelling makes the ubiquity of CNG stations more compelling. Ultimately, the government should encourage the local establishment of companies to manufacture CNG vehicles and tap fully the country’s potential in the gas and ready market. It must also ensure adherence to the new regulatory system and ensure full compliance for the safety of all.