Nigeria is on the verge of a significant shift in its fuel landscape, with Compressed Natural Gas (CNG) supply expected to surpass petrol availability in the near future. According to Ismaeel Ahmed, Executive Chairman of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, the country has made substantial progress in CNG adoption, with 96 refuelling stations, over 400 conversion centres, and approximately 120,000 vehicles already converted to run on CNG.
The growth in CNG adoption has been remarkable, with Nigeria recording significant progress since 2023, when the country had fewer than 10 refuelling stations, about five conversion centres, and just over 100 converted vehicles. Ahmed attributed this growth to the government's efforts to expand gas infrastructure and accelerate vehicle conversions, which have made Nigeria one of the countries experiencing rapid CNG adoption.
The next stage of the initiative will focus on ensuring that passengers benefit from the lower cost of CNG, rather than just transport operators and businesses within the CNG value chain. Ahmed emphasized that transport operators who save between 60 and 70 per cent on fuel costs should pass the savings on to commuters, and that the government is engaging state governments and transport stakeholders to make cheaper CNG translate into more affordable transportation for Nigerians.
The government has been supporting the conversion programme, initially providing free conversions to encourage motorists to adopt CNG while building demand and developing the necessary infrastructure. However, the focus is now shifting from proving the viability of CNG to expanding the programme on a much larger scale, with Ahmed stating that "our focus right now is scale" and that "the proof of concept has already been proven".
Nigeria has approximately 12 million vehicles, with commercial vehicles accounting for an estimated 55 to 60 per cent of the total. Ahmed noted that expanding CNG infrastructure requires extensive supporting facilities, including gas sources, pipelines, and compression networks, and that the number of CNG refuelling stations has increased from about three or four in 2023 to 96, largely through private-sector investment.
Safety concerns surrounding vehicle conversions have been addressed, with Ahmed urging motorists to use only conversion centres approved by the National Automotive Design and Development Council (NADDC) and kits certified by the Standards Organisation of Nigeria (SON). He warned against roadside conversions and the use of Liquefied Petroleum Gas cylinders for CNG vehicles, describing such practices as hazardous.
The transition to CNG and electric vehicles is expected to provide a cleaner and potentially cheaper transportation system, while reducing Nigeria's exposure to international oil price fluctuations. Ahmed emphasized that natural gas should be Nigeria's fuel of choice, and that the country could export more of its crude oil while relying on domestic gas for transportation.
Key points
- Nigeria's CNG supply is expected to surpass petrol availability in the near future.
- The government aims to make CNG or electric power mandatory for commercial vehicles.
- The transition to CNG and electric vehicles is expected to provide a cleaner and cheaper transportation system.
