CNG: The policy, pipeline, pump and passenger
The conversation about compressed natural gas is not new in Nigeria. For years, governments and private operators explored its potential. We knew the technology, possessed the gas and understood that it offered a cheaper and cleaner alternative to petrol and diesel. What was missing was the political will to make CNG a serious national priority. […] The post CNG: The policy, pipeline, pump and…
In Nigeria, discussions surrounding compressed natural gas (CNG) have persisted for many years, with governments and private operators recognizing its potential as a cheaper and cleaner alternative to petrol and diesel. However, the lack of political will prevented CNG from becoming a serious national priority. This changed with President Bola Ahmed Tinubu's leadership following the removal of the petrol subsidy in 2023.
With presidential backing, national urgency, and clear policy direction, CNG finally received the attention it needed.
President Tinubu's vision for CNG was simple: to provide a more affordable and sustainable energy option for transportation, reduce reliance on petrol prices, and offer genuine choice. The Presidential Initiative on Compressed Natural Gas and Electric Vehicles (PiCNG & EV) was established to transform this vision into a functioning market. PiCNG & EV's role extends beyond vehicle conversion or asset distribution; it focuses on building and coordinating an industry around alternative energy for mobility.
Key components of this ecosystem include mother stations that compress and distribute CNG, daughter stations that dispense it, conversion centres with trained technicians and certified kits, available vehicles, enforced safety standards, accessible financing, and confidence from investors and consumers. Other nations, such as India, Pakistan, and Egypt, have demonstrated that CNG can successfully integrate into transportation when vehicles, stations, and demand grow simultaneously. Nigeria must mirror this approach to leverage the full ecosystem.
Since its inception, PiCNG & EV has witnessed significant progress. Over 120,000 vehicles have been converted to CNG, with more than 400 certified conversion centres and over 90 refuelling stations operational throughout the country. Private capital is investing in refuelling infrastructure, while conversion centres are expanding.
Nigerians are acquiring technical skills and creating livelihoods, with examples like 52 technicians trained in Kano within three months. Commercial operators are converting their fleets due to the evident economic savings.
This shift from government-supported adoption to commercially driven adoption underscores the emergence of a self-sustaining market. The capital inflow into the ecosystem has also grown, with approximately $2.5 billion in private-sector investment, coupled with about ₦250 billion in public-sector funding and commitments. Financial institutions, such as Moniepoint and CREDICORP, are now facilitating vehicle conversions through initiatives like Buy Now, Pay Small Small, making it more accessible for operators.
Despite these achievements, challenges remain. Availability issues, such as queues at refuelling stations and delayed conversion costs, must be addressed. Expanding mother and daughter stations, particularly in major transportation corridors, and ensuring reliable CNG supply are immediate priorities. Additionally, certified kits, trained technicians, and stringent safety standards are essential for a sustainable CNG industry.
Ultimately, the success of CNG in Nigeria hinges on scaling the ecosystem to match the country's size. By addressing availability and cost concerns while fostering a robust supply-demand balance, Nigeria can fully realize the benefits of CNG as a viable and sustainable transportation fuel.
Written by urgent.news from Nairametrics's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
