Tag: Mr. Gboyega Oyetola

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Nigerians Reap Big Savings from CNG, Call for More InfrastructureThe adoption of Compressed Natural Gas (CNG) as an alternative to petrol is gaining momentum in Nigeria, with many vehicle owners slashing fuel expenses significantly. Some Abuja residents, speaking to DAILY POST on Monday, revealed they now save as much as N36,000 weekly after converting their vehicles to CNG. The shift follows the launch of the Presidential Compressed Natural Gas Initiative (PCNGI) in August 2023 by President Bola Ahmed Tinubu. The initiative aims to introduce over 11,500 new CNG-enabled vehicles and distribute 55,000 conversion kits for petrol-powered cars. By November 2024, PCNGI’s Project Director/CEO, Michael Oluwagbemi, confirmed that more than 100,000 vehicles had been converted, alongside a $200 million investment in CNG infrastructure. CNG conversion costs range from N300,000 to N600,000 with government support but can exceed N1 million without subsidies. Recently, Nipco Gas Limited announced the conversion of an additional 15,000 vehicles. Nigerians Share Cost Savings and Challenges Abuja-based public servant Chinoso Akatobi-Michael is among those benefiting from the transition. Before switching to CNG, she spent N40,000 weekly on petrol. Now, she spends just N4,000, saving N36,000 weekly. “I can confirm that CNG is far more cost-effective than petrol. However, the biggest challenge is refueling. There are very few CNG filling stations in Abuja, leading to long queues,” she said. Similarly, corporate driver Kunle Adebayo reported a drastic drop in fuel costs. He previously spent N50,000 weekly on petrol but now refuels his CNG-powered vehicle with just N5,000. “This means I save N45,000 every week. I wish the government would do more to help more Nigerians switch to CNG,” he said. However, he noted that his vehicle’s engine performance declined slightly after the conversion. PETROAN Pushes for Government Support Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), emphasized that CNG is a superior alternative to petrol due to its cost-effectiveness. However, he pointed out that the high cost of setting up CNG stations remains a significant hurdle. “This is why PETROAN is advocating for a N100 billion government intervention. The government must take the CNG initiative more seriously, as it offers immense financial relief to Nigerians,” he said. Challenges Hindering Widespread Adoption Despite the cost benefits, CNG adoption in Nigeria still faces hurdles. Petrol remains the dominant fuel, with prices ranging between N945 and N1,000 per litre. For many users, the biggest challenges are the limited number of CNG filling stations and the time-consuming refueling process. Some also believe that CNG conversion affects vehicle performance. As the Nigerian government pushes for a broader transition, stakeholders are calling for increased investment in infrastructure and policies that encourage wider adoption of CNG-powered vehicles.

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