The roadblock to CNG adoption in Nigeria’s public transport

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Saheed Babatunde is skeptical about converting his taxi from petrol-powered to the use of compressed natural gas (CNG).

His primary concern is his safety and that of his passengers.

“You know how deadly and explosive gas is,” he told Nairametrics as he waited his turn at the Iwo Road bus terminal in Ibadan, Oyo State, from where he transports passengers to Ogbomoso.

But safety is not his only worry. Despite government campaigns promoting the conversion of petrol-powered vehicles to compressed natural gas (CNG), many commercial drivers like Babatunde remain hesitant to make the switch. Their concerns range from safety risks to issues like space constraints and the availability of refueling and conversion centers.

For Babatunde, aside from his safety concern, his biggest reservation is the space the CNG cylinder would take up in his trunk.

“I carry mostly market women, who always have a load. And they pay extra for their luggage. So, when I put a cylinder inside my boot, where will passengers put their load? That CNG thing is not for me, please,” Babatunde said.

Wole Bello, a commercial bus driver also in Iwo Road, shares similar concerns as Babatunde.

“Where do you want me to put a cylinder in this bus?” he asked rhetorically, explaining that his 18-seater, stripped white bus has no space for the required CNG storage. While he acknowledges that CNG is cheaper, he insists he will stick to petrol. 

Limited availability of refueling and conversion stations

For some transport operators, the lack of adequate CNG refueling stations is the dealbreaker.

Abdulwasi, a driver at the Oshodi bus terminal in Lagos, noted that while petrol stations are ubiquitous, CNG stations are scarce. He said he did not even know one.

“I know someone who uses CNG, but his vehicle still has the petrol option. So, what’s the point? I’m used to petrol, and I don’t see any reason to convert yet,” he said.  

The government’s CNG push

Following the removal of fuel subsidies in 2023, President Bola Tinubu launched the Presidential CNG Initiative (PCNGi) to ease the consequent economic burden on Nigerians and reduce reliance on petrol-powered vehicles.

The initiative set ambitious targets, including introducing 11,500 new CNG-enabled vehicles and providing 55,000 CNG conversion kits for existing petrol vehicles.

The targets are reviewed as the campaign progresses, and to encourage adoption of CNG, the government introduced various incentives such as:

  • The removal of Value Added Tax (VAT) on imported CNG equipment. This was implemented in collaboration with the Nigerian Customs.
  • In January 2025, the Federal Government launched a 10-for-10 campaign with a mission to convert 10,000 commercial vehicles to run on Compressed Natural Gas (CNG) within 10 weeks. The project kicked off on Thursday, January 16, 2025, and is expected to run until March 31, 2025.

Progress and investments in CNG

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed that Nigeria’s Compressed Natural Gas (CNG) conversion capacity was boosted by over 2,500 percent in 2024.

According to NMDPRA CEO Farouk Ahmed, the agency has established 186 new conversion centers, boosting the number of gas-powered vehicles in Nigeria to approximately 50,000. According to the official website of the PCNGI, there are currently 216 conversion centers across the country, with Lagos and Abuja having the highest.

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Nairametrics reported that over $450 million has been invested in Nigeria’s CNG value chain, according to the PCNGi Project Director and Chief Executive Officer (CEO), Michael Oluwagbemi.

Speaking at the 9th Edition of the Nigeria Energy Forum (NEF2024) in Lagos in December 2024, he noted that the investment was used to expand CNG adoption, with:

  • 86 new daughter stations and 65 mother stations under construction; and
  • An increase of the country’s refueling capacity from 20 to 56 stations.

Why are public transport operators still reluctant? 

Despite these efforts, the adoption of CNG has been slow, especially among public transport operators. When Nairametrics visited the Oshodi bus terminal in Lagos and the Iwo Road terminal, none of the observed vehicles were CNG-powered. Drivers cited safety concerns, space constraints, and inadequate conversion and refueling centers as their reasons for reluctance.

An Energy analyst, Jide Pratt, who specializes in downstream and midstream oil and gas operations, acknowledged the progress made by the PCNGi but stressed the need for better public engagement.

He said the concerns of the public transport workers are genuine, but some, like the safety concern, may be exaggerated.

“We haven’t finished dealing ideally with the first concern, which is safety. We need to explain to people that while LPG is propane and butane, CNG is methane. Methane is CH4.

“So, we must be telling them that first and foremost, this gas is lighter than air. If it spreads, it means that it has fallen to the ground, causing the base to burn. Because you know, for something to burn, it needs oxygen.”

Pratt suggested that the PCNGi organize a symposium for transport workers. “Let us debunk or demystify first and foremost the safety concerns,” he said.

Addressing the issue of trunk space, Pratt urged transport operators to weigh the trade-offs.

He said drivers of “minibuses that do what you call intrastate” must consider choosing between using cheap gas for mobility or space in their boot.

However, Oil and gas expert and Chattered Accountant, Comrade Bala Zakka lambasted the federal government for driving the CNG campaign without proper planning. Zakka also argued that the CNG campaign was to distract Nigerians from the harsh consequences of the “abrupt removal of fuel subsidy”.

He said it is normal for people to have concerns over safety, adding that gas explosions are deadlier than fuels.

“People are not sure of the safety, and that is a valid concern. If diesel explosion killed 10 people, and a petrol explosion killed 100, a gas explosion would kill 20,000 people.”

Zakka also questioned the conversion of vehicles to CNG without the input of manufacturing companies. He suggested there may be a legal violation in the conversions of various vehicles.

However, Pratt argued that “it is faster to install than to build”. He maintained that engaging manufacturers to build CNG vehicles may prolong the adoption of CNG.

While the Nigerian government has made significant investments in CNG adoption, public transport operators remain unconvinced. Until concerns about safety, refueling infrastructure, and space constraints are adequately addressed, large-scale adoption of CNG may remain slow.