The national government is urging state governments to actively participate in the country’s energy transition efforts, specifically focusing on developing Compressed Natural Gas infrastructure. The call to action was made by the Programme Director of the Presidential Compressed Natural Gas Initiative during a press conference in Abuja. It was emphasized that states play a crucial role in achieving the energy transition agenda and should lead by example in investing in CNG infrastructure.
State governments, as direct beneficiaries of revenue from improved transportation and energy policies, are encouraged to invest in CNG infrastructure. They have control over regulations surrounding transportation activities and stand to gain from increased revenue distributions by investing in energy transition initiatives. Private individuals, including civil servants, are also encouraged to convert their petrol-powered vehicles to CNG.
The government is strategically expanding CNG infrastructure along major transit corridors like Calabar to Benin, Lagos to Kano, and Lagos to Benin via Lokoja to benefit the majority of Nigerians. Providing CNG refueling stations along these routes aims to reduce transportation costs and the overall cost of goods, particularly food items.
Efforts are being made to address concerns raised by independent petroleum marketers and station operators regarding the high cost of installing CNG dispensing add-ons. The Petroleum Industry Act allows access to funding for add-ons through the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
A study identified numerous potential CNG add-on possibilities in Nigeria, indicating a significant opportunity to expand CNG availability nationwide. Agreements have been reached with various transportation unions to ensure cost-reflective pricing for CNG-powered vehicles. While some vehicles still run on petrol, the hope is that increased CNG usage will lead to market competition driving down transportation costs over time.