Abuja: President Bola Ahmed Tinubu’s removal of the fuel subsidy on May 29th, 2023, is marked by its audacity, and his decision will likely be remembered for its courage. Less than two years later, the shift towards alternative energy sources is beginning to yield positive results for motorists, transporters, businesses, and households.
According to News Agency of Nigeria, the notorious petrol queues that plagued Nigeria’s transportation industry are gradually disappearing. There is a noticeable shift towards cheaper energy alternatives such as Compressed Natural Gas (CNG) and electric vehicles. However, new queues have emerged at filling stations due to the growing demand for gas.
During the inauguration of 30 hybrid CNG-powered buses on August 12, 2024, President Tinubu emphasized that CNG is a cheaper, safer, and more environmentally friendly alternative. He highlighted that commercial vehicles represent more than 80% of Nigeria’s petrol consumption and that introducing gas as an alternative would lower living costs and curb corruption associated with petrol subsidies.
President Tinubu noted that removing the subsidy was an economic salvation for the nation. He drew parallels with countries like India, which mandated CNG for all commercial vehicles since 2004, and expressed confidence that Nigeria would also benefit from utilizing its natural gas reserves.
According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria ranks ninth globally in natural gas reserves, with 209.26 trillion cubic feet (TCF) as of January 1, 2024. Motorists in Abuja and other regions have begun converting their vehicles to hybrids, citing cost efficiency and environmental benefits.
Ibrahim Bala Aminu, a transporter in Abuja, shared that filling his gas cylinder costs significantly less than refueling with petrol. Anosike Uzo, a mechanic, described gas as a transformative force in Nigeria’s transportation sector.
Engr. Michael Oluwagbemi, Programme Director of the Presidential CNG Initiative, highlighted the initiative’s success in stimulating demand and attracting private sector investment. He noted that over $491 million was invested, creating thousands of jobs. The initiative also increased Nigeria’s vehicle conversion capacity and established numerous conversion centers.
Oluwagbemi addressed safety concerns following reported incidents in Benin, Edo State, attributing them to amateur conversions. He assured that measures like the Nigerian Gas Vehicle Monitoring System (NGVSM) would enhance safety and compliance.
The initiative has procured 655 buses, with hundreds already deployed for commercial use. Efforts to expand CNG infrastructure continue, with plans to establish numerous refueling stations across the country.
As part of the initiative, over 1,500 technicians were trained, with plans to upskill thousands more. The program also aims to involve the university community and other institutions in its expansion efforts.
Bayo Onauga, Special Adviser to the President, stated that the President is committed to advancing CNG and electric vehicle use as alternatives to petrol. Despite the initial challenges, there is optimism for a sustainable energy future under President Tinubu’s leadership.