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Hauwa Ali
The removal of fuel subsidies in Nigeria under the regime of President Bola Ahmed Tinubu has resulted in an exponential increase in fuel prices, creating severe economic difficulties for many Nigerians, especially those who own vehicles. In Nigerian efforts to mitigate the effects of high petrol pricing, the federal government has sought to market
Compressed Natural Gas (CNG) as a potential substitute fuel.
This article assesses if CNG can be an adequate substitute in terms of price, safety, and accessibility. It also investigates the status of infrastructure development and whether CNG can indeed deliver relief to Nigerian vehicle owners.
CNG, or Compressed Natural Gas, is propelled by a mix of methane containing carbon dioxide and nitrogen. It is claimed to be cleaner, cheaper, and far more efficient than petrol or diesel fuels. Its main advantages are lower emissions and higher energy intensity, being stored at relatively high pressure, which allows it to be used inside vehicles. Countries such as India, Pakistan, Brazil, and Argentina have already adopted CNG as a fuel, and many others, throughout the world, recognize it as a cost-effective, environmentally acceptable fuel.
The concept of using gas as an alternative fuel started blossoming during the administration of ex-President Goodluck Jonathan, but it did not gain widespread attention. However, with the recent surge in fuel prices, the Tinubu administration has renewed its focus on CNG, launching initiatives to promote its adoption across the country.
One of the primary motivations for switching to CNG is cost savings. CNG is significantly cheaper than petrol. According to reports, while petrol prices surged to over ₦1000 per litre after the removal of subsidies, CNG costs N230 per litre, making it an attractive option for cost-conscious vehicle owners.
The conversion of petrol-powered vehicles to CNG, however, requires an initial investment. Vehicle owners need to install CNG kits, which can cost between ₦300,000 and ₦600,000, depending on the vehicle type. While this might seem expensive upfront, the long-term savings on fuel costs make it a financially viable option for commercial drivers and fleet operators.Safety is a major concern when considering alternative fuel sources.
CNG is generally regarded as a safer fuel compared to petrol and diesel. Unlike petrol, which is highly flammable and spreads rapidly in case of leakage, CNG is lighter than air and disperses quickly, reducing the risk of fire hazards.
However, improper installation of CNG kits or substandard conversion processes can pose risks. This raises the need for government regulations and quality control to ensure that only certified professionals carry out CNG conversions. Proper awareness campaigns are also needed to educate the public on best practices for handling CNG-powered vehicles.
A major concern for Nigerian vehicle owners is the availability of CNG refueling stations. While CNG may be cheaper, it is only a viable alternative if there is a widespread refueling network. Currently, Nigeria has a limited number of CNG stations, mainly concentrated in a few states such as Lagos, Ogun, Edo, and parts of the North. This lack of infrastructure makes it difficult for widespread adoption.For CNG to be a practical alternative, the government must invest heavily in refueling stations across the country.
The administration has promised to expand CNG infrastructure, but the speed of implementation will determine how quickly Nigerians can benefit from this alternative fuel.The administration of Tinubu understands the importance of infrastructure, which is why there are plans for the rollout of the development of CNG refueling stations alongside vehicle conversion.
The following steps have been taken so far:
The Presidential CNG Initiative (PCNGI): This PCNGI program aims to provide incentives and support to assist in the transition towards CNG. This will include but is not limited to the provision of new refueling stations and the establishment of partnerships with private investors.
CNG Bus Scheme: The government has put forth an initiative where the plans will include the provision of CNG-powered buses for public transport. This should help mitigate high transportation costs, especially for the economically disenfranchised.
Expansion of CNG Stations: There is the development of new CNG stations around the country, and even private investment from overseas to speed the process along.
Support for Vehicle Conversion: Multiple state governments and even private entities are providing support for the conversion of petrol-powered vehicles to CNG-powered vehicles.
Even with the advancements, there still are issues for infrastructure development that are inherently systemic, such as the slow speeds of new infrastructure development, high conversion costs, and certain transportation operators who are quite resistant to the changes and initial investment.
CNG as an alternative fuel source certainly has its advantages, but there are a few hurdles that Nigeria needs to overcome before it can fully adopt the fuel source.
Public Ignorance and Reluctance to Trust:
There is a considerable percentage of the Nigerian population who are yet to understand the advantages of CNG, which makes them doubtful about its feasibility and safety. There is a dire need for relations campaigns to mitigate these issues.
Significant Cost of Conversion: The economic cost of modifying a vehicle to CNG serves as a deterrent, especially for private vehicle owners. Government assistance in the form of subsidies or loans may relieve some of these financial burdens.
Insufficient CNG Refueling Infrastructure: Increasing the number of CNG refueling points is critical, otherwise vehicle owners will continue to resist switching fuel sources because of the inconveniences of refueling.
Political and Legal Constraints: Strong government policies and strategic spending are vital in constructing CNG storage facilities and assuring that safety measures are met.
CNG adoption could greatly help Nigerian vehicle owners by providing cheaper and cleaner alternatives to petrol. However, it is unclear how much relief it can provide given the rising fuel prices and the government’s ability to fill the infrastructure gap, safety concerns, and public awareness gaps.
For CNG to truly revolutionize the industry, these measures should be adopted:
Invest More in Required Infrastructure: The government should prioritize the establishment of CNG refueling stations all over the country to ensure availability.
Financial Assistance For Conversion: Subsidies, grants, and low-interest loans should be made available to CNG conversion vehicle owners to cover the cost.
Public Advocacy: The public, especially Nigerians, needs to be adequately educated on the benefits and safety of using CNG.
Private CNG Investment: The expansion of infrastructure can happen at a much faster pace by allowing private investments in CNG production and distribution. Offering more affordability and environmental friendliness to petrol, CNG has the potential to solve high fuel price concerns in Nigeria. Even though some steps have been taken by the government, the achievability of infrastructure and awareness appears as a primary challenge.