CNG adoption faces supply and safety hurdles as Nigeria expands rollout, expert says

Nigeria's expansion of compressed natural gas (CNG) as a transport fuel faces significant supply and safety challenges, according to alternative fuels development consultant Omid Hamidkhani. The success of the National Affordable CNG Transit Programme, set to commence in October, hinges on reliable supply, efficient distribution, and robust safety oversight.

Hamidkhani emphasizes that Nigeria possesses abundant natural gas resources and a transportation sector seeking more economical fuel options, but the entire value chain must function cohesively for sustainable growth. This includes balancing gas supply and demand, providing financial incentives, ensuring qualified suppliers and conversion centers, and establishing a clear regulatory framework.

While Nigeria has expanded its CNG infrastructure, demand is rising, necessitating government support for infrastructure development. Incentives for building CNG stations can help attract investors and address the first-mover problem. However, these incentives should be temporary, fostering commercial viability. Nigeria's vast size and uneven road infrastructure pose logistical challenges, making a mixed distribution strategy necessary.

Pipeline gas is preferred where feasible, while CNG trucking and L-CNG can serve as complementary solutions in other regions. Remote areas may not be economically viable for initial inclusion in the nationwide CNG rollout.