Abuja: Mr Ismaeel Ahmed, Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG/EV), emphasized that the affordability of compressed natural gas (CNG) as a clean mobility option in Nigeria is contingent upon its availability. Ahmed highlighted this during a visit by members of the CNG/EV Users Forum to his office in Abuja.
According to News Agency of Nigeria, Ahmed elaborated on the complexities involved in developing CNG infrastructure, noting that it requires multiple stages from gas production to distribution. He stressed that the Nigerian government is not merely enhancing a single segment of this value chain but is instead building a new industry from scratch. Ahmed noted that transportation costs significantly impact household expenditures, with Nigerians spending 15-25% of their income on transportation, influenced by location and transport mode. Reducing these costs is crucial, especially with the rising global oil prices affecting the domestic economy.
Ahmed acknowledged the political backing from President Bola Tinubu’s administration, which has elevated CNG to a national dialogue. He pointed out that while CNG has been available globally and in Nigeria for over a decade, it was primarily driven by the private sector and lacked comprehensive development. He mentioned that the country possesses the necessary resources and technology for CNG development, but the main challenge lies in creating simultaneous demand and ensuring an adequate supply.
One of the major obstacles to CNG adoption, according to Ahmed, is the misconception that CNG cylinders are similar to LPG cylinders, which has led to safety concerns. He emphasized the importance of changing public perception and encouraging investors to support CNG infrastructure development.
Ahmed explained that the government cannot solely finance the extensive investments required in the CNG industry, which also competes for limited public resources. He noted that the cost of infrastructure, including gas production, pipelines, and filling stations, forms part of the investment needed to make CNG accessible to consumers. Affordability, he argued, is intrinsically linked to availability, as a product that is not easily accessible cannot be considered affordable.
Highlighting the economic benefits of CNG, Ahmed shared an example of a vehicle owner who significantly reduced fuel expenses by converting to CNG. However, he emphasized that these savings should ultimately benefit passengers and other users of commercial transportation. The initiative, he clarified, is not intended to replace petrol and diesel immediately but to operate alongside them as part of a mixed energy strategy.
Ahmed welcomed the establishment of the CNG/EV Users Forum, underscoring the importance of user feedback in refining the clean mobility program. He regarded the forum as a partnership between the government, industry, and users, facilitating dialogue and learning.
Earlier, Mr Felix Uzogara, the Coordinator of the CNG/EV Users Forum, stated that the forum’s visit aimed to establish a collaborative relationship with Pi-CNG/EV. The forum seeks to represent various stakeholders in the clean mobility ecosystem and promote responsible adoption and safety education. Uzogara emphasized that users should be active partners in the initiative’s development, contributing solutions and identifying challenges. The forum will document member experiences and develop recommendations to strengthen Nigeria’s CNG and EV ecosystem.