NIGERIA’S push to address the sharp rise in transport costs, following the government’s removal of petrol subsidies, has hit significant hurdles. The country’s shift towards compressed natural gas (CNG), designed to lower transport costs by almost 50 percent, has struggled with poor implementation, lack of infrastructure, and low public awareness.
Subsidy removal sparks cost-of-living crisis
The move by President Bola Tinubu to end fuel subsidies in 2023 led to a sharp increase in petrol prices, causing transport costs to soar and pushing many Nigerians into a cost-of-living crisis. In Abuja, where many rely on e-hailing services, Ahmed Halilu saw his earnings plummet as the cost of running his vehicle tripled overnight. ‘The cost of petrol became unbearable,’ he recalls. ‘It was affecting my business, and I knew I had to adapt,’ he tells The Associated Press (AP).
CNG conversion: a government initiative
In response, Nigerian authorities introduced the CNG initiative in August 2023, hoping to tap into the country’s vast gas reserves and reduce dependency on imported fuel. The government has already invested over $200 million into the initiative, with more than 100,000 vehicles converted to run on CNG or a hybrid of petrol and CNG.
Infrastructure and public hesitancy: key challenges
However, analysts and industry experts point out that the programme is facing significant delays due to inadequate infrastructure. Filling stations offering CNG are sparse, available in only 13 of Nigeria’s 36 states. The cost of conversion is another barrier—private vehicle owners face conversion fees 20 times higher than Nigeria’s minimum wage, putting it out of reach for many.
‘People are not keen about it because of a lack of orientation,’ says Halilu, who has converted his e-hailing car and now saves $240 monthly on fuel costs. Despite his savings, Halilu is aware that many drivers remain sceptical due to fears about safety, misinformation, and limited access to conversion workshops.
Misinformation and safety concerns
The issue of safety has also been a sticking point. Some drivers have expressed concerns that CNG conversion could lead to vehicle explosions. However, regulatory agencies maintain that such incidents only occur when the conversion process is done improperly. A recent explosion in Edo State was linked to faulty equipment installed by an unlicensed vendor.
In cities like Abuja and Lagos, where demand for CNG is higher, long queues for conversions and refills are common. ‘I had to travel 200 kilometres just to refill my tank in Abuja,’ says Abdul Manasseh, an e-hailing driver.
Future of CNG: is the goal achievable?
Despite the challenges, the Nigerian government remains committed to the CNG initiative, aiming to convert 1 million vehicles by 2026. The initiative is seen as a way to reduce reliance on petrol imports, which are compounded by the country’s struggling refinery capacity. However, experts believe that unless the government addresses the infrastructure bottlenecks and raises public awareness, the target may be difficult to achieve.
Tosin Coker, the initiative’s head of commercial matters, emphasises the benefits: ‘CNG is a cleaner fuel, it is a cheaper fuel, and it is a safer fuel compared to petrol. It puts more money in your pocket and is better for the environment.’ Yet, the success of the initiative will depend on overcoming the challenges that have stalled its progress.
