Nigeria is spending ₦122 billion ($157 million) to promote the use of Compressed Natural Gas (CNG) as a cleaner and cheaper alternative for transportation. This move is aimed at reducing the financial burden of rising fuel prices and cutting the country’s dependence on costly diesel imports.
The National Automotive Design and Development Council (NADDC) is leading this initiative, which seeks to establish CNG infrastructure nationwide. This will provide Nigerians with a more affordable fuel option for their vehicles.
At the NADDC’s 2024 end-of-year briefing in Abuja, its Director-General, Mr Joseph Osanipin, highlighted the urgent need for better infrastructure to meet the growing demand for CNG.
“The current infrastructure cannot fully support CNG needs, but the federal government is taking steps to address this gap,” Osanipin said.
He noted that diesel prices have skyrocketed in the past two years, creating significant challenges for businesses in the logistics and transport sectors.
“The rising cost of diesel is unsustainable for Nigerian businesses. This investment will help establish a solid CNG network, lowering vehicle fuel costs and providing relief to businesses and consumers alike,” he added.
The funds, released on 30 September 2024, are being used to develop CNG infrastructure across all regions of the country. Companies like NIPCO, which have experience in the gas sector, are already advancing CNG projects, while others are now building their capabilities to compete.
Osanipin shared examples of the cost benefits: “A trip that costs ₦550,000 using diesel can now be done for just ₦90,000 with CNG, saving 83%. These savings will lead to lower product prices and financial relief for consumers.”
Beyond cost savings, CNG adoption will reduce Nigeria’s reliance on imported diesel, saving billions of dollars annually and providing a more stable domestic fuel source. It also offers environmental benefits, lowering the carbon emissions associated with diesel vehicles.
“With this investment, we are building a cleaner, more cost-effective energy solution that supports economic growth and reduces our environmental impact,” Osanipin said.
He added that more companies now see the value of CNG and are investing in infrastructure and partnerships to ensure steady gas supplies.
“The government is committed to solving infrastructure challenges. Once completed, these projects will make CNG more accessible and reliable for Nigerians,” Osanipin concluded.
This development positions CNG as a key player in Nigeria’s energy future, offering economic and environmental benefits while easing the burden of fuel costs for citizens.
