In the wake of President Bola Ahmed Tinubu’s decision to remove the subsidy on Premium Motor Spirit (PMS), commonly known as petrol, the Federal Government has swiftly sought alternatives to alleviate the resulting economic burden on Nigerians. To that end, the President launched the Compressed Natural Gas (CNG) policy on August 17, 2023, as a measure to provide a cheaper and more environmentally friendly fuel option.
The CNG policy aims to serve as a viable alternative to PMS, particularly for the transport sector, which has been heavily impacted by the rising fuel costs. The government has committed to converting vehicles, especially those in the mass transit sector, to run on CNG, with infrastructure being developed nationwide to support refuelling. The initiative leverages Nigeria’s abundant natural gas reserves, hoping to reduce reliance on imported petrol while enhancing environmental sustainability. The President’s office has emphasized that the CNG policy will make transportation more affordable for Nigerians.
“With the removal of subsidies, fuel costs will increase, but with CNG, our members will save significantly. This will enable them to reduce transport fares, making transportation more affordable for Nigerians,” Lawal Abdullahi, Chairman of the Zaria branch of the National Union of Road Transport Workers of Nigeria, said during an interview with reporters.
A Presidential Task Force has also been inaugurated to promote the transition from PMS to CNG, focusing on establishing vehicle conversion centres and offering incentives for vehicle owners to make the switch. The task force is responsible for overseeing the smooth transition and coordinating the necessary infrastructure development.
Nigeria’s adoption of CNG is not an isolated effort. More than 85 countries around the world have already integrated CNG into their energy mix and transportation sectors. Some leading examples include Iran which is one of the largest CNG markets in the world, with millions of vehicles running on CNG. Indian major cities have adopted CNG, especially for public transportation (buses, taxis) and private vehicles, due to government policies and pollution control measures. There is also Pakistan, another leading CNG user with widespread use in vehicles due to cost and availability.
Argentina is known as one of the pioneers of CNG adoption, with a significant portion of its vehicle fleet using CNG. Brazil uses CNG widely in vehicles, especially in metropolitan areas. Italy is among European countries that have the highest CNG vehicle use, with a well-developed refuelling infrastructure.
China is expanding its CNG usage, especially for public transportation to address urban pollution. Russians use CNG in vehicles, especially in public transportation fleets. In the United States, CNG is used mainly for fleet vehicles (buses, trucks, etc.) in certain regions like California and Texas.
Egypt is expanding its CNG use as part of its energy diversification and cost-saving strategies. Many other countries in Asia, Europe, Latin America, and Africa have growing CNG infrastructure due to its environmental benefits, cost-effectiveness, and availability.
As Nigeria pivots towards CNG, here are some essential facts about the fuel. First is cleaner emissions. CNG produces significantly fewer pollutants than PMS, resulting in lower emissions of harmful gases like carbon monoxide and nitrogen oxides.
CNG is cost-effective as it is generally cheaper than PMS, leading to savings for vehicle owners and drivers, particularly in regions with access to natural gas. It also has higher energy efficiency. This means that CNG-powered vehicles tend to have higher thermal efficiency, extracting more energy from each unit of fuel.
It is abundant in supply. Natural gas is widely available, providing a more stable and sustainable fuel source compared to petroleum, which is subject to global supply fluctuations. Consequently, it reduces greenhouse gases as vehicles running on CNG emit less CO₂, a major contributor to global warming.
The use of this product contributes to lower engine wear due to the fact that CNG combustion produces fewer carbon deposits, extending engine life and reducing maintenance costs.
The usage will further boost energy security. This is because nations with abundant natural gas reserves, like Nigeria, can enhance energy security by reducing dependence on imported oil.
In addition, there is safe storage and handling for CNG because it is lighter than air and disperses quickly if released, making it safer to handle than liquid fuels like PMS.
There is lower risk of fuel theft as a result, CNG cannot be siphoned as easily as liquid fuels, vehicles using CNG are less prone to fuel theft. This is in addition to government support for the product as many governments, including Nigeria’s, offer incentives such as subsidies and tax breaks to promote CNG usage globally
