Babatunji Wusu –

  • Nigeria is investing N122 billion to integrate Compressed Natural Gas (CNG) into the transportation sector, aiming to reduce reliance on expensive diesel and curb rising fuel costs.
  • The National Automotive Design and Development Council (NADDC) is spearheading the initiative to create a nationwide CNG infrastructure.
  • The investment will offer significant cost savings for businesses and consumers, with diesel-to-CNG cost reductions reaching up to 83%.

Nigeria is committing N122 billion towards the establishment of a nationwide Compressed Natural Gas (CNG) infrastructure, aimed at addressing the financial strain caused by rising diesel prices and the country’s dependence on costly diesel imports. This initiative, spearheaded by the National Automotive Design and Development Council (NADDC), is designed to provide a cleaner, more affordable fuel option for Nigeria’s transportation sector.

NADDC Director-General, Joseph Osanipin, highlighted the growing financial pressures on logistics and transportation companies due to the surge in diesel prices, which have increased fourfold in the last two years. He emphasized that the current infrastructure is inadequate to meet the demand for CNG but assured that the N122 billion investment would bridge the gap.

The government released the funding on September 30, 2024, to support investors and stakeholders across Nigeria’s geopolitical zones in developing CNG facilities. Osanipin noted that companies like NIPCO, which have long been involved in the gas industry, are already ahead in establishing CNG stations, and other companies are joining in to build the necessary infrastructure.

The transition to CNG offers substantial cost-saving benefits. For example, a trip costing N550,000 with diesel can now be completed for only N90,000 using CNG, representing an 83% reduction in fuel costs. This reduction could lead to lower product prices, providing financial relief to both businesses and consumers.

Beyond cost savings, the adoption of CNG will also support economic resilience by reducing the nation’s reliance on foreign-exchanged diesel imports, while simultaneously lowering environmental pollution from diesel-powered vehicles.

Osanipin reassured Nigerians that ongoing efforts to improve CNG accessibility would address current supply shortages, enabling a more stable and cost-effective fuel option in the near future. He also encouraged more companies to recognize CNG as a viable alternative and invest in the growing infrastructure.

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