Experts, who shared their insights in separate interviews on Sunday, August 20, 2023, in Lagos, have recommended that the government offer subsidies for converting vehicles to run on Compressed Natural Gas (CNG). They believe that such a move would mitigate the impact of subsidy removal and incentivize ordinary Nigerians to embrace CNG as an alternative to petrol.
On August 18, President Bola Tinubu approved the establishment of the Presidential Compressed Natural Gas Initiative (PCNGI), aimed at promoting the nationwide adoption of gas-powered vehicles. This initiative aligns with his commitment to alleviate the effects of fuel subsidy removal by reducing energy costs.
Dr. Ayodele Oni, Partner at Bloomfield Law Practice, expressed enthusiasm for the introduction of CNG-powered vehicles. He emphasized that ensuring the availability of gas reserves for distribution is crucial for successful implementation.
Oni acknowledged the lower energy density of CNG compared to petrol, suggesting that government efforts should focus on making natural gas readily accessible.
Highlighting the deregulated nature of CNG, Oni explained that as people shift towards using CNG, demand for petrol could decrease, thereby lowering its cost. He noted the significant gas reserves in Nigeria and advocated for leveraging them to promote clean energy use, reduce transportation expenses, and generate revenue for the government.
Similarly, Mr. Ayobami Olarinoye, Branch National Chairman of Liquefied Petroleum Gas Retailers (LPGAR), pointed out that the cost of conversion might not be affordable for the less privileged at the moment. However, he believes that with time, the conversion process and associated costs could become more accessible. Olarinoye advised the government to ensure that the conversion kits and training are of high quality to prevent citizens from being exploited.
Ahmed Ahmed, another expert, recommended that the government address public concerns regarding CNG usage, ensure affordable conversion costs, and guarantee product availability. He expressed hope that the conversion process would be seamless and economically feasible, allowing for gradual transition and installment payments.
The experts collectively see the government's initiative as a positive step towards reducing energy costs, offering an alternative to petrol, and utilizing Nigeria's ample gas reserves. Their suggestions emphasize affordability, accessibility, and quality assurance to ensure the successful adoption of CNG-powered vehicles.
