As Nigeria embraces Compressed Natural Gas, the nation’s path to environmental sustainability and economic efficiency looks promising.
Many countries, including Nigeria, have long relied on Liquefied Petroleum Gas (LPG). However, growing environmental concerns and the quest for cost efficiency are driving a gradual shift towards alternative fuels like Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG).
In December 2020, the Nigerian Federal Government launched its National Gas Expansion Program to facilitate the conversion of fuel-powered cars and generators from petrol to gas. More recently, this plan has been modernized in an effort to reduce costs and phase out the use of petrol entirely.
As Nigerians anticipate the widespread adoption of CNG and LNG-powered vehicles, the question arises: How will this transition benefit the public?
Changing From Petrol
Fuel subsidies have been a significant drain on the government’s finances. In light of high debt, climate change challenges, and economic imbalance, exploring viable alternatives has become imperative.
In the last decade, Compressed Natural Gas (CNG) has emerged as a game changer. It burns almost smokelessly and does not produce harmful residues like petrol or diesel. CNG, a by-product of petroleum and the first product during the distillation process, is an odorless, tasteless, and non-toxic gas composed of 93.05% methane, nitrogen, carbon dioxide, propane, and traces of ethane.
According to the World Health Organization, the combined effects of air pollution, largely caused by the combustion of petrol and other fossil fuels, result in an estimated 6.7 million premature deaths globally each year.
To mitigate this, viable alternatives like CNG, which is cleaner, cheaper, and more efficient, are essential.
Expert Insights
Energy expert Brain Amonu describes CNG as a game changer that Nigerians should embrace. He notes:
“The Federal Government’s investment in CNG, following the removal of fuel subsidies, is a testament to its potential to cut costs and save lives.”
Also, a former President of the Independent Petroleum Marketers Association of Nigeria (IPMAN),Chinedu Okoronkwo echoes this sentiment, viewing the switch to CNG as long overdue.
On the other hand, the Programme Director of the Presidential Initiative on Compressed Natural Gas Pi-CNG, Micheal Oluwagbemi emphasizes the Federal Government’s push for CNG as a move that will end pollution, environmental degradation, and economic hardship.
State Initiatives
Some states are already leading the way. Abia State, for instance, has redirected its N2 billion subsidy palliative from the federal government towards investing in CNG, setting a precedent for others to follow.
Future Prospects
As Nigerians await the full implementation of this switch, the government projects significant savings. For every one million vehicles converted to CNG, Nigeria stands to save approximately $2.5 billion.
This pathway towards a new energy alternative is promising. The key now lies in ensuring that the implementation is thorough and effective, paving the way for a cleaner, more efficient, and economically viable future for Nigeria.
How to Enable the Switch to Compressed Natural Gas (CNG) in Nigeria
Transitioning to Compressed Natural Gas (CNG) in Nigeria is a complex but achievable goal, requiring a concerted effort across various sectors. Drawing on insights from global experts in 2024, a clear pathway can be established. Here are key points to note:
Government Policy and Regulatory Framework
Government policy plays a foundational role in facilitating the switch to CNG.
According to Dr. Fatih Birol, Executive Director of the International Energy Agency (IEA), “Governments need to provide clear, long-term policy signals to attract the necessary investments.” In Nigeria, this means establishing a robust legislative framework that encourages investment in CNG infrastructure and offers tax incentives to businesses and consumers who adopt CNG.
In the same vein, reallocating subsidies from petrol to CNG is essential. This financial shift not only makes CNG more affordable but also aligns with global trends towards sustainable energy. Public awareness campaigns are vital to educate the populace on the environmental and economic benefits of CNG, ensuring widespread acceptance and support for the transition.
Infrastructure Development
Building the necessary infrastructure is critical for the successful adoption of CNG. India’s experience provides valuable lessons; as highlighted by Mr. Dharmendra Pradhan, former Indian Minister of Petroleum and Natural Gas, “Infrastructure development is key to the success of CNG adoption.” In other words, Nigeria must invest in a network of CNG refueling stations to ensure accessibility for consumers. Furthermore, establishing certified conversion centers where vehicles can be safely and efficiently converted from petrol to CNG is crucial.
Chief executive of the Australian Gas Networks, John McCarthy explains:
“A comprehensive infrastructure network reassures consumers and fosters trust in the new technology.”
Developing maintenance facilities specialized in CNG vehicle repair and upkeep is also essential to maintain safety and reliability.
Financial Incentives and Economic Considerations
Financial incentives are a powerful tool to encourage the switch to CNG. Drawing from the European Union’s strategies, as noted by Kadri Simson, European Commissioner for Energy, “Targeted subsidies and tax breaks can significantly lower the barriers to entry for clean energy technologies.” In Nigeria, providing financial incentives such as tax breaks and subsidies for converting vehicles to CNG can make the initial switch more economically viable for individuals and businesses. These incentives help offset the initial costs associated with the transition, making CNG a more attractive option.
Public and Private Sector Collaboration
Collaboration between the public and private sectors is vital for the transition to CNG. Global trends show that successful energy transitions often involve strong partnerships. The United States, for example, has seen success through public-private partnerships in its renewable energy projects. As stated by Lisa Jacobson, President of the Business Council for Sustainable Energy, “Collaboration between government and private entities accelerates the deployment of clean energy technologies.” In Nigeria, fostering partnerships between government agencies, private companies, and international organizations can drive the development and implementation of CNG infrastructure and technologies.
Learning from Early Adopters
Early adopters of CNG technology provide valuable lessons. Countries like Brazil and Argentina have successfully integrated CNG into their energy mix. According to Marcelo Furtado, former CEO of Argo Energia in Brazil, “Learning from the experiences of early adopters can provide practical insights and avoid common pitfalls.” Nigeria can benefit from these insights by studying the policies, infrastructure developments, and financial mechanisms that have worked in other countries. Implementing best practices and adapting them to the local context can streamline Nigeria’s transition to CNG.
State-Level Initiatives and Community Engagement
State-level initiatives are crucial for driving the transition at a more localized level. Abia State, for instance, has taken a proactive approach by redirecting its N2 billion subsidy palliative from the federal government towards investing in CNG. “State-level initiatives can serve as pilot projects and models for broader national implementation,” says Adnan Z. Amin, former Director-General of the International Renewable Energy Agency (IRENA). Engaging local communities and stakeholders in these initiatives ensures that the benefits of CNG are widely understood and embraced, fostering a supportive environment for the transition.
As Nigeria embarks on this pathway towards a cleaner, more efficient energy future, the key lies in thorough and effective implementation. By leveraging global expertise and best practices, Nigeria can successfully switch to CNG, achieving significant environmental and economic benefits in the process.
