The federal government recently announced that Nigeria now has over 125 vehicle conversion facilities across the board since this administration embraced and publicised the CNG initiative. Additionally, the government reported that Compressed Natural Gas (CNG), often referred to as the “energy of the future,” has attracted approximately $75 million in private investment, with more individuals and organisations expressing interest in joining this venture.
The primary objective, as emphasised by the government, is to provide affordable, alternative energy access — specifically clean cooking gas, in line with the United Nations’ Sustainable Development Goals (SDG) on creating affordable and accessible energy sources. The government, we gather, is sparing no effort to ensure maximum revenue generation to bolster the struggling economy. As beneficial as this bold move appears, we hope Nigeria will be restored to a position of financial stability as the CNG initiative gains traction nationwide.
For years, Nigeria’s energy sector has grappled with numerous challenges, often criticised for its reliance on the Nigerian National Petroleum Company Limited (NNPCL), which has struggled to solve the country’s energy issues effectively. Transitioning away from petroleum toward natural gas — identified as the energy of the future and found in large deposits in Nigeria — suggests a pathway to overcoming these long-standing problems while aligning with global trends. However, the CNG initiative remains a work in progress, and not everyone may embrace it simultaneously, owing to the necessary processes and financial implications associated with converting a vehicle — a particular burden in the current economic climate, with the naira under-performing and food prices rising.
Converting a vehicle to CNG may cost approximately N1.5 million, depending on the vehicle type and conversion facility. Ironically, while the government aims to increase revenue, it seems to overlook the importance of ensuring fuel availability to keep the system functioning optimally, especially during this challenging economic period. We understand that the federal government launched the presidential CNG initiative to create a comprehensive CNG ecosystem aimed at supporting Nigeria’s transition to cleaner transportation fuels and mitigating the impact of fuel subsidy removal.
However, questions remain about whether this idea was fully thought through, given the confusion that ensued among citizens following the fuel subsidy removal, which has placed additional strain on already impoverished communities. Fuel consumption has decreased sharply, with many Nigerians parking their vehicles and hesitating to convert to CNG because of low business activity and limited funds. Independent petroleum marketers, facing similar financial challenges, are requesting a N100 billion support package from the government, as many filling stations struggle to afford product stock. Long queues persist at filling stations, with fuel prices fluctuating unpredictably.
Despite deregulation, the blame game between marketers and regulatory agencies continues. Acknowledging that CNG is a viable future energy solution to address emerging climate-related challenges, we still believe petroleum remains the country’s lifeline and should be made readily available, especially during this time of hardship. We urge the government to consider the pressure faced by Nigerians and to ensure that the CNG initiative does not exacerbate their struggles.
The Nigerian people should be the primary beneficiaries of any initiative, and the transition to CNG should be encouraged gradually through the provision of necessary facilities, ultimately facilitating a seamless shift towards a cleaner energy future.
