Compressed Natural Gas Adoption in Nigeria: Benefits and Barriers

The Federal Government’s adoption of Compressed Natural Gas (CNG) marks a crucial step towards the nationwide rollout of CNG initiatives. Launched in October 2023 under the Presidential CNG Initiative, the program aims to provide Nigerians with affordable and environmentally friendly energy alternatives.

CNG, a fossil fuel, serves as a cleaner substitute for traditional gasoline or diesel. It is natural gas compressed to 3,600 pounds per square inch (psi) for convenient storage and transportation. The primary components of CNG are methane (CH4) at 85-90%, ethane (C2H6) at 5-10%, propane (C3H8) at 2-5%, and trace amounts of nitrogen and carbon dioxide.

The production of CNG involves extracting natural gas from underground wells or pipelines, purifying it by removing impurities and liquids, and compressing it to the required pressure.

Many countries, such as India, Pakistan, China, Argentina, Brazil, Italy, and Germany, have adopted CNG as a cleaner fuel. However, Nigeria’s infrastructure lags behind, with only 131 CNG conversion stations across states like Lagos, Kaduna, Ogun, Oyo, and Abuja. This is insufficient to cover the entire country, especially in areas not represented in all geopolitical zones.

One major challenge with introducing CNG in Nigeria is the lack of regulation for some conversion centers. Unauthorized stations pose safety risks, as seen in the recent explosion of a CNG-converted vehicle at a filling station in Benin City, Edo State, which injured many people.

Despite risks, CNG adoption offers significant benefits to Nigeria’s transportation system. It provides a cost-effective option for vehicle refueling, allowing motorists to pay less for a full tank compared to conventional fuels. However, the high conversion cost, ranging from N300,000 to N600,000, remains a barrier.

To make CNG adoption more accessible and safer, the government must establish more CNG refueling stations nationwide. The government should also offer incentives, such as tax breaks, for CNG vehicle owners. Additionally, providing subsidies for conversion kits is essential. Policymakers must focus on public awareness by launching campaigns to educate citizens on the benefits and safety of CNG. They must also reform taxes and tariffs by reducing import duties on CNG-related equipment.

Workforce development is essential, as technicians need training in CNG vehicle maintenance. Conducting regular safety audits is also necessary to ensure the reliability of conversion processes. For individuals who cannot afford the cost of converting their vehicles, the government could explore partnerships with private companies to provide financing options. This would allow owners to spread conversion costs over time.

Public transport drivers could seek financial support from transport unions, agreeing to repay loans either gradually or based on other flexible terms. By addressing these challenges and creating a supportive infrastructure, the government can ensure that the adoption of CNG becomes a safe and effective alternative fuel option in Nigeria.