The Rocky Road to Cheaper, Cleaner Fuel in Nigeria

As Nigeria grapples with soaring petrol prices, President Bola Ahmed Tinubu's government has launched an ambitious initiative to promote Compressed Natural Gas (CNG) as a cheaper and cleaner vehicle fuel. However, despite the government's efforts, the transition from petrol to CNG faces significant hurdles that cannot be overlooked.

The Promise of CNG

The Tinubu administration has taken bold steps to make CNG a viable option for Nigerian motorists:

• CNG is now available at N230 per kilogramme, compared to petrol, which costs an average of N1050 per litre at a few fuel stations in Abuja, as of September 13, 2024.
• The government plans to distribute 1 million free CNG conversion kits over 18 months.
• 10,000 free conversion kits are being distributed immediately to transport operators.
• Tax incentives have been implemented to attract investors and reduce infrastructure costs.

These measures aim to lower living costs and alleviate the impact of fuel subsidy removal. The economic benefits are clear: converted vehicles can save up to 40% on fuel costs, with even higher savings for tricycles and trucks.

The Challenges Ahead

Despite these promising initiatives, several significant barriers hinder Nigeria's full transition to CNG:

1. Limited Range

While CNG vehicles offer improved fuel economy (20-25km per kilogramme compared to 10-15km per litre for petrol), the overall range remains a concern. CNG tanks typically provide a shorter driving range than petrol tanks, which can be problematic for long-distance travel in a country as vast as Nigeria.

2. Limited Fueling Infrastructure

The success of CNG adoption heavily depends on the availability of fueling stations. Although the government has identified 184 active conversion centres, the CNG refuelling network is still in its infancy compared to the widespread availability of petrol stations. This disparity can create "range anxiety" among drivers, particularly those travelling between cities or rural areas.

3. Inadequate Awareness

Many Nigerians remain uninformed about the benefits and practicalities of CNG vehicles. This lack of awareness can lead to hesitation in adopting the new technology, even when incentives are available. A comprehensive public education campaign will be crucial to overcome this barrier.

4. High Upfront Costs

Despite government subsidies, the initial cost of converting a vehicle to CNG remains significant for many Nigerians:

• Petrol vehicles with 1.6-litre engines: N300,000 to N400,000
• Tricycles: N100,000 to N200,000
• Lorries and vans: Up to N1.8 million

While offset by long-term savings, these costs can be prohibitive for many vehicle owners, particularly in a challenging economic climate (read: 33.4% inflation rate).

Outlook

The Nigerian government's push for CNG adoption is a step in the right direction, addressing economic and environmental concerns. However, the transition faces complex challenges that require a multifaceted approach:

• Infrastructure Development: Accelerating the rollout of CNG fueling stations is crucial. This may require additional incentives for private sector involvement and strategic planning to ensure coverage in key areas.
• Cost Reduction: While the free conversion kits for commercial vehicles are helpful, extending subsidies or low-interest financing options to private vehicle owners could boost adoption rates.
• Public Education: A comprehensive awareness campaign is needed to educate Nigerians about CNG vehicles' benefits, safety, and practicalities.
• Technology Improvements: Investing in research and development to improve CNG vehicle range and performance could address some of the current limitations.
• Policy Consistency: Long-term commitment to CNG promotion and consistent policies will be necessary to build confidence among consumers and investors.

The transition to CNG in Nigeria holds great promise but will require time, sustained effort, and significant investment to overcome the current challenges. While the government's initiatives are commendable, a realistic approach that acknowledges and addresses these hurdles will be essential for success. Regular assessment and adaptation will ensure Nigeria can fully reap the benefits of this cleaner, more economical fuel alternative as the program unfolds.