Nigeria’s CNG Vehicle Transition Faces Nationwide Challenges

₦785.6 Billion Investment at Risk

• Inadequate Infrastructure: Refill stations and conversion centers are insufficient across the country.
• Idle Equipment: CNG buses and related equipment remain unused in parking lots.
• Reversion to Petrol: Some private vehicle owners are switching back to petrol.
• Uniform Challenges Nationwide: Reports from various states indicate similar issues.
• Supply Issues in the North: Gas distribution to northern regions is problematic.
• Government’s Optimism: The Presidential CNG Initiative assures that current difficulties are temporary.

The Federal Government’s initiative to shift Nigeria’s transportation sector from petrol to gas-powered vehicles is encountering significant obstacles. Stakeholders express concerns over supply shortages and a lack of infrastructure, leading to frustration among users and investors.

Despite the availability of petrol nationwide, the scarcity of CNG is causing some users to revert their vehicles back to petrol. In many states, the presence of the CNG scheme is minimal or non-existent, with some areas having the necessary equipment but lacking operational activity.

The Presidential CNG Initiative acknowledges these challenges but maintains that the program remains on track, with efforts underway to address the issues.

Government Incentives

To promote the adoption of CNG, the government has implemented several incentives, such as removing Value Added Tax (VAT) on CNG equipment and infrastructure. In May 2024, President Bola Tinubu directed all federal entities to purchase CNG vehicles. Additionally, the government funded the free conversion of one million commercial vehicles to CNG, aiming to reduce public transportation costs.

However, delays in approving licenses for new CNG stations contribute to the scarcity of refill stations, particularly in Abuja and other regions. Some users allege sabotage, suggesting that stakeholders benefiting from petrol imports may be hindering the CNG rollout.

A truck driver expressed frustration over the lack of accessible CNG stations, questioning why the government isn’t facilitating the establishment of more stations. Similarly, a taxi operator noted that long queues at gas stations are discouraging many from continuing with CNG, leading them to revert to petrol.

In Abuja, a truck driver reported spending an average of six days to refill his CNG-powered truck, highlighting the inadequate number of functional stations. The situation is similar for car owners and taxi operators, who also endure long waits.

Regional Situations

Abuja/Nasarawa:

Along the 38-kilometer Abuja-Keffi Road, there are over 49 petrol stations but only one non-functional CNG station in Ado, Karu Local Government Area. The only operational CNG station in Nasarawa is in Lafia. Motorists express frustration over the lack of conversion centers and refill stations, deterring them from adopting CNG.

Lagos:

Visits to stations in Ikeja, Mushin, and Apapa revealed that CNG was not being dispensed due to stock shortages. Sources indicate that efforts are being made to address the crisis, though challenges like delays at ports and shipment issues persist. Additionally, government-approved outlets report a lack of equipment for CNG conversions.

South East:

In Enugu State, the government has procured 50 CNG buses, with plans for an additional 50. However, these buses are currently parked and not in operation. Ebonyi State has purchased some CNG luxury buses but has yet to deploy them. Abia State plans to introduce electric buses instead of CNG, while Anambra State’s Innoson Vehicle Manufacturing Company has embraced CNG technology, though local adoption remains low.

South South:

Despite being rich in gas resources, states like Delta, Akwa-Ibom, Bayelsa, and Cross-Rivers have not seen significant implementation of the CNG initiative. Labor leaders and residents report a lack of CNG buses and infrastructure. In Delta State, a Memorandum of Understanding was signed for a CNG conversion center, but progress has been slow. Akwa-Ibom State launched a CNG initiative but has yet to establish the necessary infrastructure.