The efficient distribution of compressed natural gas (CNG) in the country requires a decisive push by the federal government to attract private sector participation (investors) in this particular energy supply business for domestic consumption. Such a purposeful initiative will come as an effective strategy to fast track growth in the economy. It is in the hands of our political leaders in government to introduce the right attractive tools that can ensure the effective implementation of the result oriented, and economically focused, applied initiative for the nationwide distribution of CNG (borrowing a leaf from Dangote’s strategic model — with adequate number of CNG-powered trucks, i.e., tankers that also convey CNG product in battery of CNG cylinders).Â
Still taking a cue from Dangote’s format, which contributes in bringing down the cost of CNG, an efficient haulage plan on CNG supplies — thoroughly and carefully programmed into logistics schedules that are operationally effective with fully equipped CNG-driven trucks that run on enough and adequately CNG refuelled reservoirs (with distributive capacity) to deliver the product in huge volumes. This format works perfectly well with none of the challenges of the trucks refuelling on the way while trucking the product to different parts of the country.
The consumer price index (CPI) basket of electricity, gas and transport in Nigeria could see a change in spending pattern on the listed household energy related consumer items if CNG supplies are conducted adequately in a well planned mode of distribution to all corners of the country. For data representation, the previous comparison on CNG and petrol or diesel (energy) consumption for transport could be used as practical empirical evidence on cost savings. For instance, a 6-cylinder SUV that runs in a month, consuming N17,200 worth of CNG which is equivalent to equal energy consumption with gasoline/petrol worth N65,000. The wide margin or difference of N47,800 is the monthly savings from consumption of CNG (preferred) against gasoline by this energy consumer on transportation. Imagine the hundreds of thousands of households in the economy that could enjoy similar savings in a month if the federal government creates an enabling environment to encourage and attract investors from the private sector to operate and deal in CNG supplies – by providing adequate supplies of CNG from their retail outlets to meet the daily domestic demands of energy consumers. The figure runs into trillions of naira annually.Â
The big question then is: why isn’t the government seizing this opportunity to exploit and optimize the impact on the nation’s GDP growth and the huge savings by individuals in their spending pattern on energy consumption when they utilise CNG in place of the more costly gasoline?
The feasible solution to effect the needed operational framework for CNG efficient supplies passes through a simple roadmap, and is equally economical at the same time. Since the country has an existing oil and gas marketing outlets in the downstream subsector of the nation’s economy, those operators in the industry (especially those interested to invest in the CNG supply business) should be engaged by the government (through the appropriate department in the industry) to extend an arm of their retail outlet, equipped with relevant facilities like the skids used for CNG refilling by discharging trucks, for purposes of seamless provision of CNG to consumers.Â
Before long, the entire nation should have been completely fixed and adequately positioned with the infrastructural facilities for very efficient CNG services to all consumers in the country. With less importance attached to fossil fuel sourced energy products due to the ongoing mitigation of global warming, adaptation to climate change, now is the best time for Nigeria to exploit this particular hydrocarbon resource, optimise the financial gains with its economic benefits for the citizenry, and generate substantial revenue through the CNG deals in the downstream (as a cleaner energy source, compared to gasoline), before it becomes too late to do so! This shall in no small measure contribute to lifting the GDP growth rate, with the attendant astronomical records that shall be credited to the economic growth and development.
If Nigerian leaders do not recognise this fact now that the opportunity still exists and knocks, it might be too late and very sad, to misuse this present window to generate revenue for the nation; and at the same time improve the lots of the masses through lowering the cost of their energy spending. This ultimately improves the people’s disposable incomes by increasingly and progressively arming them with stronger bargaining power for energy consumption.
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