PI-CNG chairman proposes mandatory CNG transition for commercial vehicles

The Presidential Initiative on Compressed Natural Gas and Electric Vehicles (PI-CNG&EV) Chairman, Ismael Ahmed, has suggested making the shift from petrol and diesel to CNG mandatory for commercial vehicles. This proposal was made in an interview on Arise News TV while discussing the government's alternative-fuel program and the need to extend its reach nationwide.

The move is part of the Federal Government's efforts to reduce transportation costs and alleviate the impact of rising fuel prices on commuters. Lagos has already implemented a similar system in its regulated public transport, prohibiting new diesel buses from operators. The proposal comes as the government has provided CNG buses to subnational governments to support their reduction in transportation costs and the impact of increasing fuel prices.

Ahmed emphasized the government's focus has shifted from proving the technology's viability to achieving nationwide scale. He highlighted Nigeria's estimated 200 trillion cubic feet of natural gas reserves, stating that the country possesses the technology to compress the resource for transportation. The shift is also aiding Lagos in managing increasing operating costs, as diesel, which cost about N950 per liter at the beginning of the year, now ranges between N1,950 and N2,100 per liter.

However, to achieve a wider transition, reliable gas supply, refueling infrastructure, financing, regulation, and safety systems are required. Omid Hamidkhani, an alternative fuels development consultant, stressed that Nigeria's vast gas reserves would not suffice if the infrastructure needed to deliver the fuel to vehicles remained inadequate.

He advocated for targeted government support for refueling infrastructure through tax incentives, import-duty relief, low-cost financing, and land support, urging private investment. Hamidkhani also cautioned that depending heavily on trucks to transport compressed gas from mother to daughter stations could become inefficient due to Nigeria's size, road conditions, and logistics costs.

He recommended a combination of pipelines, CNG trucking, and liquefied CNG (L-CNG) based on location and demand, while prioritizing safety, local technical capacity, and industry coordination. The government is expanding infrastructure and vehicle conversions under the alternative-fuel program as it strives to lower transportation costs, targeting the conversion of one million commercial petrol vehicles to CNG by 2027.

So far, about 120,000 vehicles have been converted, and the initiative has attracted more than $2.5 billion in investment.