Nigerians seek relief in CNG to offset petrol price spike

More than 16 months after the removal of petrol subsidy, Nigerians are still paying through their nose to transport themselves from one place to another, as a result of escalating price of the premium motor spirit (PMS).  

They are yet to see practical fulfillment of the Federal Government’s promise to deploy Compressed Natural Gas (CNG) buses to cushion the impact of the policy shift.

The CNG and Liquefied Petroleum Gas (LPG), are found in abundance in the country and the Federal Government has seen the need to tap into this to cushion the effects of high transportation costs arising from fuel subsidy removal from the inception of President Bola Tinubu’s administration in May 2023.

The President, during his inaugural address to the nation, had announced the removal of fuel subsidies, citing corruption by a certain group of businessmen, who enriched themselves with the subsidy payments to the detriment of the Nigerian masses.

To this end, President Tinubu launched the Presidential CNG initiative in October 2023 to deliver cheaper, safer, and environmentally friendly energy through a mass transit programme.

Business Hallmark’s checks revealed that the Federal Government has provided N100 billion of the N500 billion palliative budget for the purchase of 5,500 CNG vehicles, including buses and tricycles, 100 electric buses and over 20,000 CNG conversion kits as well as encouraging the development of CNG refuelling stations and electric charging stations across the country.

Earlier this year, there was a promise to release 3,000 CNG-fuelled buses. The emphasis on buses, according to the Presidential CNG Initiative, was due to the fact that mass transit vehicles are responsible for over 80 percent of petrol consumption in the country.

Again, ahead of this administration’s one year anniversary, the Presidency in April 2024 said that it was ready to launch about 2,700 CNG-powered buses and tricycles before May 29, 2024.

But not much of these has been seen in concrete action as transport fares are soaring every day, and eating deep into the lean incomes of the masses.

The government was not unaware that the sudden surge in transportation costs would stretch household budgets to their limits, which is why the introduction of CNG buses was so important. These buses were supposed to be a game-changer, offering a more affordable alternative to petrol-powered vehicles, helping reduce transport costs, and cushioning the blow to millions of Nigerians. Unfortunately, months have passed, and the buses are still nowhere to be found.

Consequently, Nigerians Who Rely On buses, tricycles, and taxis for daily commuting have seen transport fares soar since the subsidy removal. As the cost of fuel rises, transport operators pass the burden onto passengers, making it harder for low-income earners to get to work, school, or markets.

This has ripple effects throughout the economy, as higher transport costs contribute to inflation. Prices of food, goods and services have risen sharply, stretching the purchasing power of already struggling families. Small businesses, which depend on affordable transport to move goods and staff, are also suffering.

Worried about the delay in the roll-out of the buses and the negative impact of the hike in fuel pump price, the National Union of Road Transport Workers (NURTW) in August this year decried that the Federal Government has not fulfilled its promise to help transporters convert their buses to CNG and also the rolling out of the buses in phases.

Segun Falade, spokesperson of the union, noted that though they requested 10,000 buses, the 5,000 that are available are still being kept at the conversion facilities.

Investigations revealed that apart from transport workers, many Nigerians are eager to embrace the CNG initiative because fuel is out of reach now, amid scarcity and incessant hike in pump price approved by the present administration, which is not going back on subsidy removal.

Since the inauguration of the present administration, petrol price has risen severally from the N180 per litre, N568, N850, N900 to between N1030 and N1,300 today. This has led to over 100 percent hike in costs of transportation.

70 percent cheaper

Some automobile experts have said that cars using CNG save 70 per cent in maintenance and running expenses compared to those running on petrol.

Speaking on the benefits of converting cars from using petrol to CNG, the experts noted that beyond fuel efficiency, CNG is environmentally friendly, improved engine performance and extends its longevity

The Director-General, Nigerian Institute of Transport Technology, Mr Bayero Farah, told News Agency of Nigeria (NAN) that using CNG cars will save 70 per cent on running expenses compared to cars that run on petrol.

He said there would be an extension of service duration, engine performance and emission close to international standards while using CNG cars over those that use petrol.

According to him, CNG will have a stable price for a long period of time because it is not dependent on exchange rates and production challenges like the PMS and diesel.

The NITT boss, however, said that the disadvantage was just the initial cost of conversion which is very high at the moment.

“Other considerations are the availability of gas and technical expertise for repair and maintenance which the current administration and NITT are working to bring fast solutions to.

“NITT, by its mandate is working to provide adequate technical manpower through the Presidential CNG Initiative (PCNGI) that will deliver the entire value chain of the CNG.

“The PCNGI is establishing conversion facilities across the country to provide conversion, repairs and maintenance services. It is creating awareness on the benefits and consequences of using CNG and integrating relevant stakeholders in the CNG value chain,” he said.

National President, the Amalgamated Union of Motor Mechanics and Technicians, Mr Oseni Suleiman told NAN that CNG cars guaranteed cheaper maintenance costs than petrol-powered cars.

He said CNG burns more cleanly than petrol, reducing wear and tear on engine components and its combustion produces significantly lower emissions compared to PMS and diesel.

“CNG is cheaper and cleaner to use. It is cost-effective as it burns slowly in emission and consumption than petrol. But the availability of its refill stations in Nigeria as of today, is not encouraging.

“The spread of petrol and diesel stations across Nigeria is more, even when the products may be scarce most at times. Also, petrol seems to have been adulterated severally, such that it has lost its early quality which is now responsible for its quicker emission and loss of power and value,“ he said.

Some CNG vehicle owners who spoke with NAN also affirmed that the design was cost-effective and easy to maintain. One of them, Mr Joseph Oluebube said, “My own is factory fitted. When I bought the car some years back, I did not know the advantages, I was running on petrol because the gas stations are not available.

“it was challenging entering some public places because of the cylinder in the trunk. There was a time I wanted to dismantle it, but my mechanic advised me against it.

“But now, I am enjoying it. If I fill the cylinder for N4000, it takes me more than one week to exhaust it, and I go to work from Kubwa to Garki daily.”

Convert-and-pay-later

To further promote the initiative, the Federal Government last week launched an application portal for Nigerians willing to convert their vehicles from the use of petrol to CNG

According to a statement by the National Orientation Agency titled “Payment plan to make it easier to switch to CNG”, Nigerians who wished to make the switch to CNG could apply on the portal and spread payments in monthly installments.

The statement read in part: “Switching to Compressed Natural Gas is now more accessible than ever. With flexible payment plans tailored to fit your budget, transitioning from petrol to CNG has never been smoother or more affordable.

“These payment options allow you to convert your vehicle now and pay later with affordable monthly installments at competitive rates. With an easy online application and quick approval process, you’ll receive support every step of the way to ensure a hassle-free experience”.