Nigeria’s push to expand the adoption of compressed natural gas (CNG) as an alternative to petrol and diesel is facing a combination of financing, infrastructure, safety and operational challenges, with vehicle owners saying that the potential savings from cheaper fuel are often undermined by the difficulty of accessing CNG.
While CNG can significantly reduce fuel costs, motorists must contend with the upfront cost of conversion, limited refuelling infrastructure, long queues at stations and concerns about the quality and safety of installations.
Recent experiences of commercial drivers also show that the economics of CNG can vary depending on access to refuelling stations and the amount of time operators spend waiting to obtain gas.
The challenges come as the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV) continues to expand conversion and refuelling infrastructure across the country.
For many motorists, the initial cost of converting a petrol-powered vehicle to CNG remains one of the biggest barriers.
The cost of conversion can run into hundreds of thousands of naira, making the transition difficult for motorists who depend on their vehicles for their daily income.
For some vehicle owners, however, even subsidised conversion remains significant.
An Abuja commercial driver, Paul Ngila told Nairametrics that he spent N650,000 converting his vehicle and CNG had proved more profitable than petrol but that access to the fuel remained a major challenge.
A private vehicle owner, Michael John said the major problem was the time spent waiting for CNG at filling stations.
The experience highlights an important consideration for commercial operators: the cost of fuel is only one component of profitability. Time spent waiting to refuel represents lost trips and lost income.
The potential savings from CNG remain one of the strongest arguments for conversion.
A vehicle owner cited by the Pi-CNG initiative reportedly reduced weekly fuel expenditure from about N300,000 on petrol to approximately N22,000 on CNG after converting his vehicle.
Other operators have reported similar savings.
An Abuja SME owner George Bukus, previously said he spent only N1,200 on gas for several trips that would have cost him more than N22,000 in petrol.
However, he also identified maintenance as a challenge, saying:
This suggests that the economic calculation for CNG owners goes beyond the pump price. Conversion costs, maintenance, downtime, availability of gas and the distance to refuelling stations all affect the overall return on investment.
The expansion of CNG-powered vehicles requires a coordinated network of conversion centres, trained technicians, gas supply infrastructure and refuelling stations.
Where stations are inadequate, vehicle owners can spend several hours waiting for gas or travel considerable distances to find an operational station.
An Abuja commercial driver, Bade Shitu, described the situation as a major operational burden.
Another driver Usman Maji questioned whether the infrastructure was sufficiently developed to support widespread conversion.
The comments underline the infrastructure challenge facing the programme: converting more vehicles does not automatically create a functional CNG market unless motorists can conveniently refuel those vehicles.
The difficulties have already prompted some converted vehicle owners to return temporarily to petrol.
Kingsley Orji, a businessman and commercial tricycle operator in Lugbe, said CNG had helped reduce his fuel expenses but that inadequate access to stations forced him back to petrol.
Similarly, Abuja public servant Buchi said CNG reduced his weekly commuting fuel expenditure from between N50,000 and N60,000 to about N15,000.
However, he said the availability problem eventually pushed him back towards petrol.
He added:
These experiences illustrate why the availability of CNG is as important as its price.
A source close to NIPCO refill stations acknowledged that supply interruptions had affected some stations, explaining that delays could occur at different stages of the supply chain.
Financing is another important issue, particularly for commercial drivers, small transport businesses and fleet operators.
For many operators, paying hundreds of thousands of naira upfront for conversion is difficult even when the expected fuel savings are substantial.
A financing model that spreads the conversion cost over time could therefore make adoption easier, but repayment terms would need to reflect the irregular income patterns of many transport operators.
Israel Ndanusa, an analyst at Kwik Securities Limited, previously said the cost of converting a vehicle to CNG was beyond what many transport operators could raise upfront.
He said conversion, which at the time cost about N325,000 on average, was particularly difficult for the people most likely to benefit from cheaper fuel.
The concern is particularly relevant for commercial drivers operating tricycles, taxis and buses, who depend on daily earnings to meet household expenses and maintain their vehicles.
For operators who borrow money to finance conversion, the availability of CNG becomes particularly important.
