CNG: The Debate Over Conversion Costs and Affordability (2023)

Delve into Nigeria’s shift towards CNG, understanding the economic challenges and the nation’s roadmap to a sustainable fuel future.

Understanding the CNG Movement in Nigeria

With a world rapidly shifting towards more sustainable energy solutions, Nigeria joins the movement by considering Compressed Natural Gas (CNG) as an alternative fuel.

But is it all smooth sailing?

The Concern: Is CNG Conversion Truly Economical?

Some thought leaders in Nigeria’s Oil and Gas domain have voiced apprehensions about the financial feasibility of the shift.

Their core argument? The conversion costs might not align with the average Nigerian’s pocket.

Why the Sudden Shift to CNG?

To counter the impact of fuel subsidy removal, the government has initiated this move.

However, experts suggest that a subsidy on conversion costs might be the only way to motivate a countrywide transition to CNG.

The Experts Weigh In

Many specialists commend this initiative.

Yet, their concerns lie with the entities that would handle the vehicle conversions.

There’s an underlying worry: will the common citizen be at a disadvantage?

Voices from the Industry

Insights from the LPGAR Chairman

Mr. Ayobami Olarinoye, the figurehead of Liquefied Petroleum Gas Retailers (LPGAR), has a clear message for the government: Ensure top-notch kits, training, and equipment.

The aim? No citizen should feel shortchanged.

Olarinoye’s Take on Standards and Safety

The LPGAR chief emphasizes industry standards, saying, “The nation shouldn’t endure further hardships.”
Educate them on CNG safety and advantages.

A Glimpse into IPMAN’s Perspective

Alhaji Debo Ahmed of IPMAN underscores CNG’s transformative impact. “Petrol now has a rival.”

This fosters competition, the essence of market dynamics.”

President Tinubu’s Vision for CNG

Ahmed applauds President Tinubu’s vision. He notes, “CNG and petrol both serve the same function.”
It’s about giving people choices.

Moreover, the conversion costs? They can be tackled with the National Gas Expansion Programme (NGEP).”

What Does This Mean for the Average Nigerian?

The key takeaway? It’s about flexibility.

If CNG isn’t available, switch to petrol.

Assurance Needed from the Top

The government, Ahmed suggests, needs to alleviate concerns about CNG’s use.

The goals? Make it affordable, and ensure its consistent availability.

A Bold Step Forward

On August 18, President Bola Tinubu approved the PCNGI.

This action shows his commitment to reducing the impact of fuel subsidy removal and lowering energy costs for Nigerians.

for more info do follow / piggybank.ng

FAQs:

What is the main concern about CNG conversion?

The financial feasibility for the average Nigerian.

Who has expressed these concerns?

Experts from Nigeria’s Oil and Gas sector.

What solution does the LPGAR chairman propose?

Ensuring quality kits, training, and equipment for conversions.

How does IPMAN view the introduction of CNG?

As a positive competition to petrol, beneficial for market dynamics.

What is President Tinubu’s commitment towards CNG?

He founded PCNGI to encourage the use of gas-powered vehicles.


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