Petroleum industry players said limited refuelling infrastructure, weak financing and supply shortfalls remain the biggest obstacles to wider adoption of Compressed Natural Gas (CNG) in Nigeria.
They raised these concerns at the National CNG Adoption Conference held in Abuja on Wednesday.
The meeting was organised by the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), the National Compressed Natural Gas Forum (NCNG-F) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
Themed “Strengthening the National CNG Adoption and Mobilisation Agenda,” the forum brought together key stakeholders from the oil and gas industry to deliberate on investment opportunities, infrastructure development, safety, regulatory challenges and strategies for accelerating CNG adoption in the country.
In his address, the NCNG-F National Chairman, Faruk Abdullahi, said the future of CNG in Nigeria cannot be built by the government alone, nor can it be achieved by conversion centres, gas suppliers or infrastructure providers acting in isolation.
“It requires the collective commitment of government, organised labour, transport unions, professional associations, private-sector operators, financiers and the millions of Nigerians whose daily economic activities depend on affordable and reliable energy,” Mr Abdullahi said.
According to him, Nigeria’s decision to pursue alternative and more affordable energy solutions is taking place against the background of changing economic realities.
He added that the removal of the fuel subsidy has fundamentally altered the cost structure of transportation and production, placing considerable pressure on households, businesses and operators across the economy.
While acknowledging the adjustment challenges associated with the policy, he said, “We must also recognise the importance of developing sustainable alternatives that can reduce our exposure to the cost of conventional fuels, strengthen domestic energy utilisation and support long-term economic productivity.
“In this regard, CNG presents an important opportunity for Nigeria. We have significant natural gas resources, a large transportation market and a growing need to reduce operating costs,” he said.
Mr Abdullahi noted that with the right infrastructure, financing mechanisms, safety standards, public confidence and stakeholder coordination, CNG can contribute meaningfully to reducing transportation expenses, improving business competitiveness, creating employment and stimulating investment across the gas value chain.
“We must, however, be realistic. The availability of natural gas resources does not automatically translate into widespread adoption. People will not convert their vehicles merely because the technology exists or because the government has announced an initiative.
“Adoption will depend on whether the alternative is accessible, affordable, safe, reliable and economically beneficial to the people expected to use it. We must be honest about the challenges. The initial cost of vehicle conversion, access to refuelling stations, availability of financing, public awareness, safety concerns and the need for reliable service delivery all influence the decisions of potential users,” he said.
Also speaking, the Pi-CNG & EV Conversion Manager, Adaugo Uzogara, said that since May 2023 the initiative had established over 500 conversion centres and more than 90 refuelling stations across 25 states.
According to her, the effort had created many direct and indirect jobs, and she expressed hope that continued collaboration would carry CNG to all 36 states, offering cleaner, cheaper and safer energy.
Stakeholders endorse CNG, back subsidy removal
In closing, the PETROAN president, Billy Gillis-Harry, described CNG adoption as a serious national issue that requires collective action to succeed.
Mr Gillis-Harry said the time had come for stakeholders to critically examine how to make CNG work for the country.
“But this is a very serious matter, and it has come to the point where we must all look at how we can make CNG work for us,” he said.
According to him, the complaints, challenges and solutions raised at the conference point to issues that could undermine the economy if not addressed.
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He said there was consensus among stakeholders that CNG remains the way to go.
“The critical thing here is that all of us agree that CNG is a good way to go, and therefore we endorse CNG,” he said.
He identified operational challenges, availability of infrastructure, funding and the need for training as critical issues requiring urgent attention.
He said the forum would continue to engage the government to find solutions to the bottlenecks.
According to him, the stakeholders at the meeting also affirmed support for fuel subsidy removal, describing it as a policy that had negatively impacted the economy in the past and should not be reversed.
“We have already brought out the facts that funding is inadequate. Infrastructure is inadequate. And we must all work with the government to ensure that CNG is adopted and penetrates Nigeria,” he said.
