Nigeria is globally acclaimed to be naturally endowed with an abundance of hydrocarbon resources. The nation, by history and the past performances of the petroleum sector of its economy, has really not tapped the capital stock, nor exploited for economic gains to the fullest, the oil and gas industry, since after independence in 1960. There is overwhelming empirical evidence to support this position with decades of data from hydrocarbon business activities in the export operations of the oil and gas industry. The petroleum sector of the economy has been recognised globally by reason of its significant role in export of crudes to the international oil market, but the truth of the matter is that the nation has not maximally gained nor optimally benefited from her naturally endowed hydrocarbon capital stock. One clear example is the underutilization of the nation’s gas-based mineral resources. One very important example of that range is the inefficiency of the leaders and drivers of the national economy to critically focus on enriching the nation through full domestic utilization and consumption of compressed natural gas (CNG).
In the global space, one significant aspect of the world’s situation is the current global battle for climate adaptation, and the mitigation of global warming through measures of production, generation and consumption of energy in man’s daily activities (which majorly includes economic tasks and commercial engagements) in society. This measure is obviously through packages that regulate the environmental, social and governance (ESG) issues for sustainable living through spelt out controls within the rules of the specific social order. This particular point touches on the United Nations’ global efforts and drive for climate control through carbon emissions (the greenhouse gas) reduction and control.
The energy transition programme that advocates transiting from fossil energy sources to renewable energy sources is the main thrust towards actualizing the globally targeted environmental sustainability that has been disrupted by the impact of global warming. This again favours the consumption of CNG, which is a cleaner energy — although it is hydrocarbon based, it is not polluting the atmosphere as much as the energy sourced from crude oil does. While both are fossil sourced, the “carbon footprint” from CNG is by far less, when compared with energy sourced from crude oil base. Its carbon emission could therefore, be comfortably controlled scientifically by “carbon neutrality” measures in the environment, while human activities persist on its energy consumption.
In today’s Nigeria, the local utilization or domestic consumption of CNG is laughable, and portrays the nation’s economic planners in bad light because, our ailing economy could be drastically improved if there is effective utilization of this product, especially at this point in time in the life of the economy. The present administration in its efforts to promote and encourage the consumption of the CNG appears to be more or less, not serious about the initiative. The reason for this remark is that the economy is bleeding profusely, and the pockets of the citizenry are leaking without any foreseeable solution to it. How do we get out of this poorly planned strategy that ought to make Nigerians smile again, with improved financial savings from their daily costs of energy consumption? It is very important that at this critical time in the economic history of the country that an energy product like the CNG is significantly popularized with much more emphasis laid on consumption of CNG, for road transport purposes by the government of the day.
In this current state of the nation’s economy, CNG appears very important when the consumption cost is compared with that of gasoline/petrol and/or diesel in running engines like generators to power machines in industries and homes, or vehicles for transportation. In terms of cost savings, these are necessarily priced high, hence, its economic importance for the nation’s economy at this auspicious time that families are not easily meeting up with their daily expenditures.
The simple economic roadmap to point to is a need for the government to critically improve on the distribution and supplies of CNG all over the country, especially when it is currently captured as a “Renewed Hope” agenda of the present administration to reduce the financial burdens and suffering of the masses in the country. The government ought to utilize this socioeconomic order as a very effective economic strategy in its governance. With a well articulated, organised and maintained adequate supply of CNG from outlet stations properly distributed and strategically located in the country, the econometrics on the people’s disposable incomes shall be appreciably improved upon. Take for instance, a place like Abuja, where frightening lengthy queues occur at CNG stations! Consumers will be encouraged if such a situation is addressed to reduce the lengthy man-hours being wasted while waiting to refuel CNG engines.
For example, a 6-cylinder SUV may fill its tank for about N4,300, which the user does four times in the month (amounting to a total of N17,200).
This same vehicle user may compare his energy consumption for the same period with refueling his gasoline/petrol tank with N65,000. The wide margin for the same utility when notes are compared between the costs of consuming CNG and petrol are obvious, N17,200 and N65,000 respectively (giving a difference of N47,800 savings). I believe that the government should look into this, and improve the CNG supply situation as a way towards ameliorating the financial sufferings of all Nigerians, moving forward towards a stable economy.
Sunny Nwachukwu (Loyal Sigmite), PhD, Fellow (ICCON, CSN, SM), a pure and applied chemist with an MBA in management, is an Onitsha based industrialist, and former vice president (finance), Onitsha Chamber of Commerce. He can be reached on +234 803 318 2105 (text only) or schubltd@yahoo.com
