When Nigeria’s President Bola Tinubu removed the petrol subsidies that made fuel affordable for many, Ahmed Halilu, who runs an e-hailing cab service in Abuja, knew his business was in trouble. The move caused transport costs to soar as petrol prices more than tripled, triggering the country’s worst cost-of-living crisis in a generation. Halilu saw a significant drop in his passengers and, eventually, his earnings.
To address the issue, Nigerian authorities launched a compressed natural gas (CNG) initiative in August, aiming to cut transport costs by almost 50%. Nigeria has the largest gas reserves in Africa, and the initiative seeks to convert petrol-powered vehicles to CNG, alongside the introduction of CNG-powered buses.
More than 100,000 vehicles have already been converted to run on CNG or a hybrid of CNG and petrol. The government has invested at least US$200 million into the initiative, according to Michael Oluwagbemi, the project’s director. The goal is to convert 1 million of Nigeria’s 11 million vehicles over the next three years. However, experts point out that progress has been slow due to poor implementation and limited infrastructure.
Despite being one of Africa’s top oil producers, Nigeria relies heavily on imported refined petroleum products. Its refineries are struggling, with production at its lowest in decades, worsened by widespread oil theft. The subsidy removal, along with other reforms introduced by Tinubu, was meant to save the government money and attract more foreign investment. However, it has also driven up the cost of living, making many people give up their vehicles and resort to walking.
The shift to gas, however, has not been easy. There is a lack of an adequate network for CNG conversions and filling stations, which are only available in 13 out of Nigeria’s 36 states. Public awareness of the initiative is low, and misinformation has led to hesitation among drivers.
Halilu, who converted his vehicle, now saves US$240 a month on petrol. However, many drivers remain skeptical about CNG, fearing their vehicles might explode. These claims have been debunked by regulatory agencies, which state that explosions only happen if the conversion is done incorrectly. In Edo state, for example, a vehicle explosion was traced to faulty installation by an unaccredited vendor.
Even in major cities like Abuja and Lagos, CNG filling stations are few, and the workshops for conversions are overcrowded. Commercial vehicles often wait for days to switch to CNG at subsidized rates, while the cost for private vehicles is prohibitive, at 20 times Nigeria’s minimum monthly wage of US$42.
Abdul Manasseh, another e-hailing driver in Abuja, shared his frustration, recounting how a colleague had to drive 200 kilometers just to refill his CNG cylinder.
The limited gas pipeline infrastructure is another obstacle, making it difficult to supply CNG stations in many regions, particularly in the north and east. This challenge is similar to the slow adoption of electric vehicles in Nigeria, where unreliable power supply, caused by underinvestment and vandalism, hinders progress.
Despite these issues, the government remains committed to the CNG initiative. Tosin Coker, the project’s head of commercial matters, acknowledged the uncertainty around the initiative and promised to address the challenges and misconceptions. He emphasized that CNG is cheaper, cleaner, and safer than petrol, and that it would ultimately save drivers money while benefiting the environment.
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