FOLLOWING the removal of fuel subsidy, which led to the increase in the cost of fuel, the federal government launched the Presidential Compressed Natural Gas Initiative ( PCNGI), aimed at promoting the Compressed Natural Gas (CNG) adoption across the country. The laudable initiative, which includes plans to deploy thousands of CNG-enabled vehicles, provide conversion kits for existing vehicles, and establish a nationwide network of CNG refueling stations, is envisaged to mitigate the effects of an increase in the price of fuel.
Compressed Natural Gas (CNG), commonly referred to as the green fuel because of its lead, sulphur free character and reduction of harmful emissions, provides alternative fuel and offers potential solutions to the environmental degradation, air pollution, public health issues and economic vulnerabilities associated with fossil fuels, particularly oil and diesel.
Apart from driving domestic gas utilisation and delivering a cleaner and cheaper source of energy, other derivable benefits of CNG include the emission of far less carbon compared to fossil fuels, limited flammability making accidental combustion less likely, as well as allowing for lower vehicle maintenance costs and does not contaminate motor oil.
Presently, the hike in the price of fuel has astronomically increased the cost of goods and services, reduced the disposable incomes of the people, heightened health risks, and impacted businesses. The surge in transport costs by over 50 percent has made most people park their vehicles. The CNG provides a cleaner fuel option at a minimal cost as one kg of CNG corresponds to about 1.7 litres of petrol.
Beyond the federal government’s promotion of the adoption of CNG in Nigeria, there is an urgent need for the state governments to leverage the benefits of the initiative to alleviate the suffering of the people by investing in CNG. This is because transitioning to CNG has the potential to reduce the dependence on fossil fuels, stabilize energy prices, and boost the local economy.
The state governments need to take advantage of the economic benefits of CNG, which are considerably cheaper than petrol and diesel, to save substantial costs for consumers and businesses. These savings can be channeled into other sectors, stimulating economic growth and job creation. Additionally, the development of CNG infrastructure can generate employment opportunities in production, distribution, and maintenance.
We advocate for adequate investment by the state governments in the building of infrastructure, as a widespread network of CNG refueling stations and pipelines is essential for ensuring the convenience and accessibility of CNG for consumers. There is also the need to make conversion kits readily available to transporters and vehicle owners and, where possible, subsidize the cost of acquiring the conversion kits to encourage their adoption.
As a way of alleviating the hardship faced by the people, the state governments should engage private investors through public-private partnership arrangements in leveraging resources and expertise to accelerate infrastructure development as policies and incentives play a crucial role in driving CNG adoption. Subsidies for CNG vehicles, refueling infrastructure, and tax incentives for businesses that switch to CNG should also be pursued, while favourable regulatory measures should be put in place to create conducive environment for investment.
CNG offers a viable pathway to address the challenges of climate change and the need for sustainable energy and provides environmental, economic, and social benefits capable of transforming the lives of the people, especially with the current economic hardship in Nigeria. We therefore enjoin the state governments to embark on public awareness about the benefits of CNG through educational campaigns, workshops, and media outreach to inform the public about the advantages of CNG, dispel misconceptions, and encourage its use.
