Abuja:Alfa Designs Nigeria Limited, an asset management company, has reassured Nigerians that the nation’s abundant natural gas reserves provide a substantial opportunity to overcome the ongoing global energy crisis.
According to News Agency of Nigeria, the company emphasized that Nigeria’s significant natural gas resources offer a strategic advantage amid the current volatility in global energy markets and rising operational costs.
Alfa Designs urged a shift from complaints about rising energy costs to the adoption of Compressed Natural Gas (CNG) as a sustainable growth engine. The company noted that transitioning from traditional petroleum products could alleviate financial burdens on citizens and position Nigeria as a desirable industrial hub, attracting foreign investment and driving job creation.
To support this transition, Alfa Designs has partnered with a global Original Equipment Manufacturer to reduce the costs associated with converting commercial vehicles to CNG. This partnership has lowered the cost of CNG conversion kits for tricycles from N700,000 to under N450,000, offering immediate financial benefits to local operators.
With petrol prices at roughly N1,390 per liter, compared to a CNG equivalent of about N98 per liter, commercial drivers can significantly cut their daily fuel costs. This shift translates to a 71% reduction in daily energy expenditure, resulting in monthly savings that allow drivers to recover conversion costs in less than 46 days.
When scaled nationally, these savings are substantial. Nigeria’s daily gasoline consumption costs about N69.5 billion, but a 71% reduction in fuel expenses could generate national savings of N49.6 billion per day, equating to approximately N18.1 trillion annually. These savings could address the country’s $2.3 trillion infrastructure deficit by reinvesting in the domestic economy and reducing dependence on imported fossil fuels.
The economic benefits extend to boosting corporate margins, expanding the tax base, and generating revenues to support major transit projects, promoting a self-sustaining financial cycle.