Nigeria seeks to cut petrol importation by $4.4bn with CNG initiative

Joshua Igboba

The federal government is placing its trust in the Compressed Natural Gas (CNG) initiative to significantly reduce the country’s fuel importation expenses, amounting to a staggering $4.4 billion per year.

Faced with the dual challenges of bolstering sustainable energy solutions and mitigating the effects of fuel subsidy removal, the Tinubu administration is focusing on enhancing the country’s energy mix by prioritizing Compressed Natural Gas (CNG) as a key component.

By adopting a multi-pronged approach that includes reducing carbon emissions while addressing the challenges of fuel subsidy removal, which has resulted in a significant price hike for petrol, the Bola Tinubu-led administration is aiming to usher Nigeria towards a more sustainable and cost-effective energy sector.

Zayyanu Tambari, the coordinator of regulatory, compliance & facilitation of the Presidential CNG Initiative (PCNGI), addressed a gathering of stakeholders in Abuja to reassure the country’s commitment to meeting international standards for the CNG conversion process.

Speaking at the event, Tambari noted that the federal government is committed to ensuring the highest level of safety and regulatory compliance as it progresses towards the implementation of the CNG initiative, which is expected to significantly reduce the country’s reliance on imported fuel and create a more robust and sustainable energy infrastructure.

Dwelling on the federal government’s ambitious plans to transition Nigeria towards cleaner and more efficient fuel alternatives, Tambari said the government is looking to replace 20 percent of the current daily 50 million litres of petrol consumption with compressed natural gas, a strategy that is estimated to require a total investment of $890 million in CNG infrastructure development.

In a bid to assuage the concerns of potential consumers, the PCNGI coordinator, reaffirmed the government’s intention to implement a stringent system to safeguard the safety and reliability of CNG conversion processes.

Tambari explained that the government plans to ensure that only vendors who have undergone proper conversion processes at accredited and licensed centers using approved conversion kits will be eligible to purchase gas at retail outlets.

He stated further, “So, with this structure  in place, once you convert your vehicle at a conversion center that is duly accredited, you will be issued some kind of identification. We’re going to work out on the technology. There are different kinds of technologies that will enable you to identify that vehicle.

And once that vehicle goes to the retail outlets, let me say QR code for instance, then the attendants will now be able to check that vehicle and then confirm that that vehicle was converted in an accredited conversion center with approved conversion kits, and then the guy can buy his gas and move on.

Tambari also spoke further on the government’s comprehensive monitoring and compliance framework that would accompany the implementation of the CNG initiative.

According to him, the government, in collaboration with key stakeholders such as the Standards Organization of Nigeria (SON), the Federal Road Safety Corp (FRSC), and the National Automotive Design and Development Council (NADDC), the government is set to roll out the Gas, Vehicle Monitoring and Surveillance System (GVMS) to ensure close monitoring and compliance for autogas conversion processes across the country.

“Now, we have some data here, but I think the most significant here is the fact that we plan to convert 1 million vehicles in the next 4 to 5 years. But at the rate at which we are working, I believe we will  reach that timeline as soon as possible,” he assured. 

Tambari spoke further on the transformative potential of the CNG initiative, positioning it as a critical tool for job creation and economic growth in Nigeria.

According to Tambari, if just one million out of the country’s existing 12 to 15 million vehicles were converted to gas, it would trigger a domino effect that would lead to a significant surge in the demand for gas supply, the creation of new infrastructure, the emergence of service providers, technicians, conversion centers, and other vital components of the CNG value chain.