Fueling the future: Nigeria’s CNG revolution — By Shola Adebowale

NIGERIA is on the cusp of a revolutionary transformation in its energy sector. The country’s abundance of natural gas reserves, coupled with the growing need for cleaner and safer energy sources, has set the stage for a Compressed Natural Gas (CNG) revolution. This shift is poised to transform Nigeria’s transportation sector, reduce greenhouse gas emissions, and unlock diverse economic benefits for the nation and its rapidly growing population. Presently, the nation’s energy sector is heavily reliant on fossil fuels, with petroleum products accounting for approximately 80 percent of the country’s energy consumption. However, this dependence comes with significant environmental and economic costs. The country’s transportation sector, which accounts for 40 percent of the nation’s energy consumption, is particularly vulnerable to fluctuations in global oil prices with a resultant high cost of transportation in both rural and urban regions of the nation. Therefore, the emergence of CNG offers a cleaner, more cost-effective alternative to traditional fossil fuels.

The benefits are multifaceted: for instance, there are huge environmental benefits to be derived as CNG reduces greenhouse gas emissions by up to 25% compared to diesel and gasoline. The economic benefits are also monumental as CNG is significantly cheaper than diesel and gasoline, offering savings for consumers and businesses. In terms of energy security, CNG reduces Nigeria’s dependence on imported fuels and therefore enhances the nation’s energy security.

There is no doubt that Nigeria is making significant strides in developing its CNG infrastructure. The country’s first CNG station was launched in 2015, and several others have since been established. The Nigerian National Petroleum Corporation (NNPC) has committed to expanding CNG infrastructure, with plans to establish 100 CNG stations nationwide. Policy-wise, the Nigerian government has implemented various policies to support CNG adoption across the nation: for instance, it has put in place varieties of tax Incentives, while import duties on CNG equipment have been waived. Also, the government has put in place a national regulatory framework like -The Nigerian Gas Policy (2017) to promote CNG development. However, despite obvious progress, diverse challenges persist. For instance, there is a major need for Infrastructure development, as a national expanded CNG infrastructure is highly essential to take good care of the expanding necessity for the growing CNG spread across the nation. The challenge in the level of public awareness is also there and therefore education is crucial to increase adoption and adaptation of this revolutionizing idea. Private sector Investment in the development of CNG is still very low as this is highly essential for scaling up the development CNG, nationwide.

These challenges notwithstanding, there are now many success stories. Worthy of note is that in Lagos State, CNG-powered buses have reduced emissions and operating costs and their adoption is becoming more and more rapidly increasing. While NNPC’s CNG-powered vehicles have lowered fuel costs. In other words, Nigeria’s CNG revolution is gaining momentum. With government support, private sector investment, and growing public awareness, the country is poised to unlock the benefits of cleaner, more cost-effective energy. As Nigeria fuels its future with CNG, it sets an example for Africa’s energy transition.

Adebowale writes in from Woji, Port Harcourt.

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