Afrigather Lengthy queues of automobiles are a typical sight at petrol stations throughout Nigeria, however for some drivers turning to compressed pure fuel, pumps have gotten a factor of the previous.
A fivefold improve in petrol costs because the rollback of gasoline subsidies final yr has satisfied them to make the change to CNG, which is less expensive and much kinder to the surroundings.
On the NIPCO Plc station on the outskirts of Abuja, the capital, enterprise can also be brisk for retrofitting automobiles to run on compressed fuel. It’s constructed a devoted workshop, the place mechanics set up the cylinders and inject techniques to make the change.
“We’re booked till the top of January no less than,” mentioned Chris Uche, the technician in cost. “There are such a lot of automobiles ready to be transformed.”
Learn additionally: NNPC eyes 12 CNG mom stations, mini LNG crops in race to spice up fuel provide
The CNG shift displays a push by Africa’s prime oil producer to ease its reliance on crude by selling funding within the nation’s largely unexploited 200 trillion cubic ft of confirmed fuel reserves, most of that are burned off or re-injected into wells.
Incentives are being provided to fuel corporations, tariffs and taxes have been waived on CNG gear, taxis and different business drivers can get reductions, and a ten billion naira ($6 million) credit score facility has been arrange for personal automobile homeowners to make the leap.
The “mission is to boost Nigeria’s vitality safety, decrease transportation prices, and cut back carbon emissions,” mentioned Toyin Subair, vice-chairman of a presidential committee on CNG, which has set a aim of changing 1 million autos by 2027.
The nation is on observe to satisfy its preliminary aim for 100,000 business autos by end-2024, he mentioned, “bringing substantial value financial savings to transporters, lowering public transport fares for Nigerians, and advancing Nigeria’s clear vitality aims.”
Whereas that’s a modest aim given Nigeria’s 12 million autos, and low when in comparison with Egypt’s 500,000 CNG automobiles, it signifies the nation’s clear vitality ambitions.
The conversion includes putting in a high-pressure fuel tank and gasoline traces, a stress regulator and injectors. When CNG is injected into the engine, it’s ignited by the automobile’s spark plugs, much like how gasoline is burned in a standard engine.
Automobiles pushed for rideshare platforms Uber and Bolt, distinctive of their aged Toyota Corollas, Honda Civics and Peugeot 206s, have been eager prospects. Their automobiles at the moment are being retrofitted to run on CNG that retails for 230 naira per liter, one fifth of the value of petrol. Some drivers have seen income surge greater than 400% a month.
“The one drawback it has value me is the area within the boot. Passengers with baggage have proved to be a problem,” mentioned Bolt driver Clement Sunday, whose gold-colored 2002 Peugeot 206 runs on each petrol and CNG. Additionally, it “doesn’t drive as quick as a result of fuel burns slowly, however the oil is cleaner, the smokes are gone. It is a cleaner choice,” he mentioned.
Learn additionally: Inadequate filling stations gradual FG CNG venture
The cumbersome yellow fuel cylinder in his boot takes up a 3rd of the area however can energy the automobile for 150 kilometers (93 miles) on a single 3,500 naira fill.
Sunday spent 800,000 naira to switch the automobile, an quantity that was a 3rd lower than the beginning worth because of the federal government subsidy, and says he has since recovered the funding in full.
Whereas such drivers are simply discovering the enchantment of CNG, it’s been used within the trucking trade for years, together with by billionaire Aliko Dangote. His tanker fleet has been retrofitted to make the 700 kilometer journey between Abuja and the business hub Lagos, the place his oil refinery is situated.
Nigeria hopes {that a} mixture of Dangote’s refinery and the push into CNG will assist finish its expensive must import refined petroleum. That’s paid for in {dollars}, straining the nation’s overseas change reserves and weakening the naira.
Regardless of the incentives, the promotion of CNG stays a piece in progress.
Fuel is produced in southern Nigeria by oil majors together with Shell Plc and TotalEnergies SE, and is distributed to filling stations nationwide. However outdoors huge cities, CNG use is low and even discovering a station that sells it in Lagos or Abuja can he exhausting.
“We now have to drive for 2 three hours to discover a station, and as extra automobiles are transformed, the queues have lengthened,” mentioned Sunday.
Additionally, aside from the state-owned oil firm and its companions like NIPCO, most fuel distribution companies are staying away, describing the retail value of CNG for automobiles as at present unprofitable due to worth regulation.
Subsidy Substitution
“It’s like changing one subsidy with one other, however we see the market settling at 50% – 60% of the value of petrol and diesel,” mentioned Sumeet Singh, the chief government officer of Powergas Africa Ltd, who prefers to promote CNG to factories and different industrial customers the place the value is unregulated.
Learn additionally: Presidency calms fears over CNG amid Malaysia 2025 ban
The federal government says there are greater than 90 conversion facilities nationwide, with $450 million earmarked for funding in CNG infrastructure. One other 88 smaller stations are in improvement and cellular items to refuel as much as 40 autos per hour are deliberate.
However the largest hurdle to embracing the hybrid automobiles might be security issues over driving with a fuel cylinder on board. Not like petrol, CNG reacts to temperature and dangers exploding if not dealt with correctly.
Its picture wasn’t helped by a current incident within the southern metropolis of Benin when a automobile exploded whereas being crammed up, injuring three individuals. The federal government, pushing again on what it claimed was misinformation on social media, mentioned the accident was attributable to an illegally-modified car.
