The Nigerian government is pushing forward with the Compressed Natural Gas (CNG) initiative designed to cushion the blow of rising fuel costs following the removal of subsidies.
As part of its Presidential Compressed Natural Gas Initiative (PCNGI), the government is offering free vehicle conversions to CNG for Lagos residents on Friday, September 13. This is part of a larger plan to ease the financial burden on Nigerians struggling with the soaring prices of petrol.
From 3 PM to 6 PM, vehicle owners at six designated centers across Lagos will have the opportunity to convert their petrol-powered cars to run on CNG, an alternative fuel that is significantly cheaper. The first 50 vehicles to pass inspection at each center will be fitted with free CNG conversion kits, allowing them to refuel at N230 per standard cubic meter (SCM) at any NIPCO station, which is a fraction of the cost of petrol.
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This initiative is a direct response to the economic hardships brought on by the removal of fuel subsidies earlier this year. The removal sent fuel prices skyrocketing, with Nigerians facing unprecedented costs at the pump. In an effort to counteract this, the PCNGI was launched by President Bola Ahmed Tinubu in August 2023, aiming to introduce over 11,500 CNG-enabled vehicles and 55,000 conversion kits nationwide.
The Lagos State Commissioner for Transportation, Oluwaseun Osiyemi, announced the upcoming free conversions via his official X (formerly Twitter) account, encouraging Lagosians to take advantage of the opportunity. According to him, this initiative will help ease the financial strain that rising fuel prices have placed on vehicle owners, allowing them to switch to a cheaper and more sustainable fuel alternative.
Designated Conversion Locations
To facilitate the conversion process, six centers in Lagos have been designated as official CNG conversion hubs:
- Femadec: Km 42, Lekki-Epe Expressway, Majek Second Gate Stop, Abiju Ibeju, Lekki, Lagos.
- Portland: No. 1, Ojota Interchange Terminal, Bayo Shodipo, Ojota, Lagos.
- Mezovest: KM 23, Lekki-Epe Expressway, Ajah, opposite Kilimanjaro, beside Libmat Motors, by Abraham Adesanya Bus Stop.
- Dana Motors: Dana Motors Ltd Kia Plaza, 117 Oshodi-Apapa Expressway, Isolo, Lagos.
- MBH Power: Km 5, Ikotun Road, Itamope, Ikorodu, Lagos.
- Autogig: Plot 144b Gbagada Expressway, Gbagada, Lagos.
The conversion exercise is also available in other cities. On the same day, CNG conversions will be carried out in Abeokuta, Ogun State, and Ibadan, Oyo State, from 3 PM to 6 PM. On Saturday, September 14, similar efforts will be made in Abuja and Kaduna.
Reducing Dependency on Petrol
The PCNGI is not just about providing immediate financial relief to Nigerian drivers. It’s a cornerstone of the government’s broader strategy to reduce dependency on petrol and move toward cleaner, more affordable energy.
CNG, which is significantly cheaper than petrol, is seen as a sustainable solution to Nigeria’s energy challenges. With CNG priced at just N230 per SCM, compared to the higher and fluctuating prices of petrol, vehicle owners can save substantially by converting their vehicles.
In addition to savings, CNG is also a cleaner fuel, producing fewer emissions and contributing to environmental sustainability. This aligns with global trends as nations around the world push for greener energy alternatives in the face of climate change.
Addressing the Impact of Fuel Subsidy Removal
Since the removal of the fuel subsidy in May 2023, Nigerians have been grappling with severe economic pressures as fuel prices nearly tripled. The subsidy removal, which was part of the government’s broader economic reforms, was necessary to curb rising national debt and unsustainable spending. However, the immediate effects have been tough, with many Nigerians struggling to cope with the sudden increase in fuel prices and inflation.
The government’s response, including the launch of the PCNGI, is aimed at alleviating some of this pressure. By offering free CNG conversions, the government hopes to provide vehicle owners with an alternative fuel option that is not only cheaper but also more sustainable in the long term.
Speaking on the initiative, the PCNGI committee noted that program is a critical part of the government’s strategy to mitigate the impact of the subsidy removal.
The government’s long-term vision goes beyond individual vehicle conversions. As part of the PCNGI, plans are underway to introduce a network of workshops across Nigeria to facilitate CNG adoption. This includes not only private vehicle conversions but also converting public transportation and commercial fleets to run on CNG.
In July 2024, PCNGI signed a Memorandum of Understanding (MoU) to convert one million commercial vehicles to CNG by 2027, identifying 2,000 workshops to support this project. The initiative is also working in collaboration with the Nigerian National Petroleum Corporation (NNPC) and NIPCO Gas to establish a nationwide network of CNG refueling stations, making it easier for Nigerians to access cheaper fuel alternatives.
This ambitious project is expected to create jobs, boost local manufacturing, and develop technical skills.
However, while the PCNGI represents a significant turning point for Nigeria’s transportation sector, offering immediate relief from the effects of subsidy removal, its pace has become a concern. The initiative which was announced more than a year ago, was expected to be widely by now, to alleviate the high cost of transport-induced suffering of Nigerians.