Compressed Natural Gas (CNG) may not be the newest of technological innovations, but Nigeria’s recent interest in this alternative fuel source is widely seen as a welcome development.
As the country navigates the challenges of energy security, environmental sustainability, and economic growth, CNG emerges as a viable option
Nigerians are already looking ahead to a brighter future with the announcement on Monday that the country will begin using CNG-powered vehicles by May 29th. This coincides with President Bola Tinubu’s first year in office
Intended to deliver cheaper, safer, and more climate-friendly energy, in October 2023, the initiative was listed as part of the presidential initiative to cushion the effect of fuel subsidy removal.
The President had in various speeches and statements said that fuel subsidy had gulped trillions of naira from the country’s coffer annually; he also said the money had only ended in the pockets of some individuals.
In the months that followed subsidy removal, economic hardship reached a tipping point as food inflation soared in addition to the price of Premium Motor Spirit.
Following the removal of fuel subsidies, the government introduced various relief measures, including the critical CNG Initiative. This initiative aims to provide affordable compressed natural gas, particularly for public transportation, to lessen the impact of rising pump prices that have significantly increased transportation costs.
Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, said in a lengthy tweet that “The Federal Government, as part of the many intervention programs to reduce the burden of increase in pump price on the masses, provided N100 billion (part of the N500 billion palliative budget) to purchase 5500 CNG vehicles (buses and tricycles), 100 Electric buses and over 20,000 CNG conversion kits, alongside spurring the development of CNG refilling stations and electric charging stations”.
However, as with the other government’s measures to cushion the effect of the subsidy removal, some Nigerians have raised questions on the CNG-powered vehicles’ safety, economic advantages, cost of conversion, and environmental implications, among other questions.
“We don’t even have enough gas to power our plants for electricity and cook but the government wants to add more pressure on the short supply via CNG buses. Beyond the impossibility of this initiative, what do we think will happen to the price of gas ?. Great initiative but ill-timed The government knows this. They need to stop deceiving Nigerians with this CNG issue. It’s okay to come clean and switch plans to Electric vehicles while we ramp up gas production,” an analyst queried.
Embedded gains
However, Michael Oluwagbemi, the Programme Director and Chief Executive of the Presidential Compressed Natural Gas Initiatives, shed light on the embedded gains and how President Tinubu intends to create jobs through the CNG Initiative.
“The President has said we need to convert one million vehicles by 2027, we need 1,000 conversion shops, and we need over 3,000 filing stations just like this. You can imagine the level of investment required for this. In order to sustain a one-million-vehicle conversion by 2027, we need 25,000 technicians. So, the job creation potential is there.” he explained.
On the cost of conversion, the Chief Executive Officer of Operation at Zeta Power Limited, Kyriakos Schizas, said some car owners might find the N600,000, which is the cost of the conversion outrageously high. However, he said if they consider converting their cars, they would save N1m every year using CNG. In other words, they would save N400,000 after removing the N600,000 they spent on the conversation.
Schizas equally offered insight into the safety of CNG-powered vehicles. Some have asked if the converted vehicles would not explode because they were initially designed for gasoline. He said that the CNG cylinder is thick enough to withstand the pressure of the content therein. “Gas will not contaminate engine oil, which will give the engine good lubrication,” he added.
Experts say unlike petrol, CNG does not cause air pollution — which affects the environment negatively. They posited that the latter would extend the engine’s life with deficient carbon because gas is a cleaner fuel than petrol. However, they say their worry with the CNG Initiative is the scarcity of CNG stations in the country, urging the government to ensure it creates stations in strategic parts of the country.
Examples from around the World
The world’s significant shift to CNG-run vehicles was largely due to the high petrol prices and the air population caused by gases purged by gasoline and diesel engines.
Several countries have successfully adopted CNG vehicles. Argentina, for example, has one of the largest CNG vehicle fleets globally, with nearly six million vehicles on the road.
According to a report by Reuters, Argentina opened its first compressed gas station in 1984 and now has 1,100 outlets in 17 provinces, making it available to a majority of its 5.4 million car owners. About 110,000 cars were converted last year alone.
Pakistan is another example where CNG use has grown significantly due to government support and economic factors like high gasoline prices.
Egypt is one of the first 10 countries to adopt the CNG concept in Africa and the world. Currently, it boasts over 128,754 CNG-run vehicles as well as 124 CNG fueling stations.
It was also the first nation in Africa and the Middle East to commission a public CNG fueling station in January 1996.
Currently, the likes of Iran, Brazil, China, Italy, Columbia, Uzbekistan, Thailand, and Indonesia are among the countries that have a high number of CNG-run vehicles.
Work to be done
It has been reported that transitioning from petrol to Compressed Natural Gas (CNG) has the potential to save Nigeria up to N3 trillion annually. But this relies heavily on widespread commercial adoption.
To achieve this goal, the government must take significant strides to encourage the acceptance of gas-powered vehicles. One pivotal strategy involves the establishment of robust CNG station projects and the necessary infrastructure
The availability of soft loans to set up CNG stations and a strong commitment by the government to communicate the benefits clearly would also encourage more users.
Drawbacks
While CNG offers a clean and potentially cost-effective ride, it’s important to weigh the drawbacks.
With limited CNG stations, filling up might take extra time and planning. One might also have to give up some boot space and experience a decrease in acceleration compared to gasoline. CNG vehicles can also come with a higher upfront cost
While embracing the potential of CNG, one must also acknowledge its limitations. By doing so, one can harness the power of this alternative fuel source to drive progress.
