Nigeria’s CNG conversion drive faces hurdles over financing, safety and operational bottlenecks

Nigeria's initiative to promote the use of compressed natural gas (CNG) as a cheaper alternative to petrol and diesel is facing several obstacles, including financing, infrastructure, safety and operational issues. Vehicle owners argue that despite the potential savings from cheaper fuel, the high initial cost of converting vehicles to CNG, limited refueling infrastructure, long queues at stations and concerns about the quality and safety of installations act as significant barriers.

The expansion of CNG-powered vehicles requires a well-coordinated network of conversion centers, trained technicians, gas supply infrastructure and refueling stations. However, inadequate stations force vehicle owners to spend hours waiting for gas or travel long distances to find operational stations. This operational burden deters many from fully embracing CNG.

Recent experiences of commercial drivers highlight how the economics of CNG can vary depending on access to refueling stations and the time operators spend waiting to obtain gas. The initial cost of conversion often remains a significant barrier for vehicle owners, especially those who rely on their vehicles for their livelihood.

For instance, a commercial driver in Abuja spent N650,000 for conversion, which proved profitable but access to the fuel remained a major challenge. Even with subsidies, the upfront cost remains high. While some vehicle owners have reported significant fuel savings, maintenance and downtime also pose challenges. The potential savings from CNG are not the only factors influencing conversion decisions.