The Federal Government of Nigeria is keeping an eye on public transport providers who keep raising prices even after being given free vehicle conversions to compressed Natural Gas (CNG). These infractions have been the subject of several public complaints to the program’s overseeing agency, the Presidential Compressed Natural Gas Initiative (PCNGI). The project has garnered more than $450 million in private Finance and is a crucial component of President Bola Tinubu’s administration’s drive for alternate fuel sources. PCNGI claimed that the program’s objective of lowering fuel costs for drivers and passengers is being undermined by certain transport operators’ noncompliance with agreed-upon tariff structures.
Commercial drivers can now transition to CNG for free thanks to PCNGI’s Conversion Incentive Program, which was introduced to promote compliance. It oversees authorised conversion centres, and transport unions are involved to help with the process. In order to get around union-related barriers, a ’10 for 10′ program has also been implemented, in which agents visit transport parks in Abuja and Lagos to register cars for conversion. In order to enforce fare laws, PCNGI is stepping up its surveillance operations and is warning that anyone who violates them may face consequences. Additionally, the organisation has encouraged commercial drivers to report problems via its helpline and other approved avenues.
Stakeholders should maintain affordability, sustainability, and compliance.
In order to increase accessibility and the availability of petrol supplies, PCNGI is also working on developing CNG refuelling Infrastructure and conversion centres. The program calls on stakeholders to maintain affordability, sustainability, and compliance while highlighting transparency and accountability. Passengers, complying drivers, and members of transport unions have all responded differently to the Nigerian government’s campaign to promote Compressed Natural Gas (CNG) as an alternative fuel. These viewpoints offer a thorough grasp of the initiative’s effects and potential areas for expansion, especially when combined with concrete statistics on infrastructure improvements and fuel cost savings.
Significant operating cost savings are reported by numerous commercial drivers who have switched to CNG. For example, a bus driver in Lagos said that after converting to CNG, his daily fuel costs dropped from around ₦30,000 to about ₦7,000. Another driver also mentioned how cost-effective the alternative fuel is, stating that he could get from Lagos to Ilorin with only ₦4,100 worth of CNG. Representatives of the transport unions have also recognised the advantages of switching to CNG.
Converting to CNG has significant financial advantages.
More so, the Amalgamated Union of App-Based Transport Workers of Nigeria (AUATON) South-West Zonal Chairman, Comrade Kolawole Aina, talked about his favourable experiences with CNG-converted cars and emphasised the possibility of broad commercial driver adoption. Converting to CNG has significant financial advantages. According to data, the consumption of a converted gasoline car is approximately ₦40 per kilometre, which represents a 40% reduction when compared to conventional fuels. On a per-kilometre basis, tricycles use about 10, saving between 50 and 75 percent on gas.
Drivers can save a large amount of money each week because CNG is priced between 230 and 260 per Standard Cubic Meter (SCM) in Lagos, which is significantly less than the current price of petrol. Although they gain from free CNG conversions, transport providers have been accused of increasing fares by the Presidential Compressed Natural Gas Initiative (PCNGI). In order to combat this, PCNGI has stepped up its monitoring activities to guarantee that authorised fare structures are being followed. The precise penalties for operators or stakeholders who are found to be in violation of these agreements have not been made public. Nigeria’s government has laid forth ambitious goals to increase the infrastructure for CNG.
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Additionally, to assist 100 workshops by the end of 2024 and 1,000 workshops by 2027, the PCNGI plans to start with 10 experimental conversion workshops. The network of CNG refuelling stations is being improved. In order to accommodate the increasing number of CNG users, the government intends to build refuelling and virtual gas distribution centres, beginning with test projects and expanding as needed. By solving existing infrastructure constraints and encouraging wider usage, these advancements seek to make CNG a more practical and accessible option for drivers in Nigeria.