The Federal Government of Nigeria, through the National Automotive Design and Development Council (NADDC), has vowed to address the infrastructure gap hindering the widespread use of Compressed Natural Gas (CNG) among Nigerians.
The pledge was made by the Director-General of the NADDC, Mr Joseph Osanipin, during the council’s end-of-year media briefing on Friday in Abuja.
Osanipin admitted that Nigeria does not have adequate infrastructure to meet the demand and push for CNG.
He, however, assured that significant investments were being made to bridge the gap.
“The infrastructure we have currently cannot fully support the demand for CNG. However, the Federal Government is working seriously on that. On Sept. 30, the government released N122 billion to assist investors and stakeholders across Nigeria’s geopolitical zones to provide the necessary infrastructure for CNG.
“A lot of investments are going into the provision of infrastructure to support gas. Once these projects are completed, we will begin to see the results in the near future. Companies like NIPCO, which have been in the gas business for years, have a head start, but many other stations are also building CNG facilities,” he said.
He explained that building infrastructure, like constructing the foundation of a house, often goes unnoticed until tangible results are visible. He cited examples of the cost-effectiveness of CNG, highlighting its potential to reduce operational expenses for businesses significantly.
“For instance, a trip that costs N550,000 with diesel can be done for N90,000 with CNG. This gives users a savings margin of N460,000 per trip. Such savings can translate into lower product costs, which benefit both businesses and consumers.
“Partnerships are being formed, and infrastructure projects are underway to ensure the availability of gas. The infrastructure will come, and when it does, the challenges with gas supply will be significantly reduced,” he said.
What you should know
- The federal government is actively promoting the adoption of CNG through the Presidential initiative for CNG (Pi-CNG).
- Nairametrics reported that the Nigerian Customs Service (NCS) has removed import tariffs on CNG equipment as well as cooking gas (Liquefied Petroleum Gas).
- The Pi-CNG has invested over $200 million in the spread of CNG and has converted over 100,000 petrol vehicles to CNG.
- Infrastructure deficit is one of the hindrances against the spread of CNG.
