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Mar 20, 2024

The Government's Role in Promoting CNG Conversion in Nigeria

The government has recognized the significance of sustainable transportation and has taken steps to actively promote the conversion to Compressed Natural Gas (C...

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As Nigeria grapples with the challenges posed by the continuous increase in fuel price, the need for alternative source of fuel has become crucial. In Nigeria, a country heavily reliant on fossil fuels, the government has recognized the significance of sustainable transportation and has taken steps to actively promote the conversion to Compressed Natural Gas (CNG) as a viable, cost effective and eco-friendly alternative.

The Role of Government in promoting CNG conversion

Recognizing the urgent need to mitigate the impact of fuel subsidy removal on its citizens, reduce carbon emissions and dependence on fossil fuels, the Nigerian government has implemented several initiatives to incentivize and support the adoption of CNG.

One of the notable steps of the Federal Government is the initiative to roll out 11,500 CNG buses to ease the current transportation challenges as well as 55,000 conversion kits as an immediate palliative to ease conversion. The PCNGI project director, Michael Oluwagbemi said that state governments have begun to indicate investment interests in CNG buses. As a matter of fact, the Rivers state government already acquired some of these CNG buses.

In addition, the Lagos state government is also set to deploy 100 units of CNG buses from the Federal government on defined routes in the first quarter of 2024 and 1000 units before the end of 2024. According to the governor of Lagos state, Babajide Sanwo-Olu, this initiative is aimed at and committed to delivering a transport system that is safe, sustainable, seamless, and with the potential to drive the socio-economic growth and development of Lagos and the country.

Furthermore, the government has partnered with private sector stakeholders like Portland Gas to establish CNG conversion sites across the country. The aim of this partnership is to provide cost-effective alternative fuels for households and industries. The partnership also aims to transition towards a more environmentally conscious and economically sustainable energy landscape.

Lastly, according to the Minister of Information and National Orientation, Mohammed Idris, the government of Bola Ahmed Tinubu has so far committed the sum of 100 billion naira towards CNG.

The Nigerian government's commitment to promoting CNG conversion through various initiatives is a significant step towards a sustainable future for the country.

Collaboration between the government and private sector in promoting CNG conversion

Collaboration between the government and the private sector also plays a crucial role in promoting CNG (Compressed Natural Gas) conversion in Nigeria.

By working together with the private sector, the government can leverage the expertise, resources, and innovation of businesses to drive the widespread adoption of CNG. This collaboration can take various forms, such as public-private partnerships, joint initiatives, and policy dialogues.

Recently, the Minister of Information and National Orientation, Mohammed Idris has urged private sectors to spearhead Federal government’s initiative on Compressed Natural Gas in the country.

In addition, the government through NNPCL has taken active steps in partnering with NIPCO Gas towards the establishment of CNG refueling by identifying suitable locations for these stations. Recently, CNG refueling stations were launched in Abuja, Akwa Ibom and Ibadan respectively.

Also, the 11,500 CNG buses is to be rolled out by government through partnerships with the private sectors.

Continued collaboration between the government, private sector, and the public will be essential in driving the successful transition towards a cleaner and more sustainable transportation sector in Nigeria.

Success stories and case studies of CNG adoption in Nigeria

In recent times, Nigeria has made significant strides towards promoting the adoption of Compressed Natural Gas (CNG) as a viable alternative to traditional fossil fuels. The government's efforts in this regard have been met with success, as seen by various case studies and success stories across the country.

One such success story is the recent efforts by the Lagos State Government to convert some of its public transportation vehicles, BRT, to run on CNG in Lagos. The Lagos State Government, in collaboration with private sector partners, embarked on a comprehensive program to convert buses and taxis to CNG-powered vehicles. This initiative is not only aimed at reducing air pollution and carbon emissions but also to counter the impact of the high cost of petrol and diesel after the removal of the petrol subsidy.

Another noteworthy case study comes from the commercial sector, where businesses like Innoson Motors a Nigerian made automobile manufacturing company have embraced CNG as an alternative fuel for their fleets by producing more CNG powered vehicles.

Also, Ogun CNG buses also commenced operations along the Mowe-Ibafo-Berger Lagos routes. These buses were powered by the Ogun state Government and tagged ‘DapoCNG Bus’. The governor of the state, Dapo Abiodun, stated that it was a direct response by his administration to mitigate the adverse impact of fuel subsidy removal on transport costs experienced by the commuters in the state.

Furthermore, there has also been a recent commissioning of the ABG Group CNG plant and graduation of 40 CNG conversion technicians in the country.  

Some of these success stories and case studies highlights that the government's role in promoting and supporting these initiatives has been instrumental in driving the country towards the adoption of CNG.

Further steps the government can take towards promoting the widespread adoption of CNG

While the Nigerian government has taken significant steps towards promoting the adoption of Compressed Natural Gas (CNG) as an alternative fuel source, there are still further measures that can be implemented to ensure a sustainable future for the country.

1. Incentives and subsidies: The government can introduce more attractive incentives and subsidies to encourage individuals and businesses to convert their vehicles to CNG. This could include tax breaks, reduced import duties for CNG conversion kits, and financial support for CNG infrastructure development.

2. Awareness campaigns: Increasing public awareness about the benefits of CNG conversion is crucial for its widespread adoption. The government can launch comprehensive awareness campaigns to educate citizens about the environmental and economic advantages of CNG, and how it can contribute to reducing air pollution and dependence on fossil fuels.

3. Collaboration with industry stakeholders: The government should actively engage with industry stakeholders, such as vehicle manufacturers, fuel providers, and CNG conversion specialists, to foster collaboration and ensure a smooth transition towards CNG adoption. This can involve providing support for research and development efforts, fostering partnerships, and facilitating knowledge sharing. 

4. Regulatory framework: Clear and supportive regulations are essential for the successful implementation of any sustainable initiative. The government should establish a robust regulatory framework that addresses safety standards, quality control, pricing mechanisms, and the enforcement of CNG-related policies. This will provide a sense of security and confidence to both consumers and businesses considering CNG conversion.

5. Investment in infrastructure: Adequate infrastructure is crucial for the widespread use of CNG. The government should invest in the development of CNG refueling stations, pipeline networks, and storage facilities across the country. This will ensure that CNG is easily accessible to consumers, promoting its adoption and usage.

By implementing these, the Nigerian government can further accelerate the transition towards a sustainable future powered by CNG. Not only will this reduce the country's carbon footprint, but it will also contribute to energy security, job creation, and economic growth.

If you are considering the CNG conversion and the bill is the challenge, download the Flickwheel app on Google Playstore or Appstore to access our auto loan.

Read more about CNG here:

  1. Step by Step guide on how to successfully convert your car
  2. Availability of CNG fuel stations in Nigeria
  3. The Challenges of CNG Conversion for E-hailing drivers
  4. An Introduction to Compressed Natural Gas
  5. Top Benefits of CNG Conversion in Nigeria

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