Key Points
• Pi CNG says reliable CNG supply is essential for making clean mobility affordable.
• Ahmed says government cannot finance the entire CNG value chain and needs private investment.
• He says transport costs account for 15 per cent to 25 per cent of household income in Nigeria.
Main Story
The Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi CNG/EV) says reliable availability of compressed natural gas (CNG) is essential to making clean mobility affordable for Nigerians.
Mr Ismaeel Ahmed, Chairman and Chief Executive Officer of Pi CNG/EV, said this on Tuesday in Abuja when members of the CNG/EV Users Forum visited his office.
Ahmed said the CNG industry required investment across the entire supply chain, from gas production and processing to transportation, compression and distribution.
He said the Federal Government was developing an industry rather than simply implementing an intervention in one part of the value chain.
According to him, Nigeria has the resources and technology required to develop CNG, but the challenge is to build supply while creating sufficient demand among consumers.
He said government had provided the political backing needed to make CNG a national project, after years in which its development was largely driven by private sector operators and remained limited in scale.
Ahmed said the need to reduce transport costs was particularly important because Nigerians spend between 15 per cent and 25 per cent of their income on transportation, depending on their location and mode of transport.
He said investors therefore needed to be encouraged to develop the infrastructure required to ensure that vehicle owners who convert to CNG can consistently access the fuel.
The Pi CNG boss said government could not fund the entire value chain because of the scale of investment required and competing demands on public resources.
He explained that investment was needed for gas production, pipelines, compression stations, transportation, daughter stations, land acquisition, licensing and filling stations.
Ahmed said misconceptions about CNG, including fears that its cylinders could easily explode like LPG cylinders, were also slowing adoption. He said sustained public awareness would be required to change existing perceptions and energy use habits.
He cited the experience of a vehicle owner travelling between Kano and Karai who previously spent about N300,000 weekly on petrol but now spends about N22,000 on CNG after converting the vehicle.
He said the reported savings demonstrated the potential economic benefit of CNG, although the initial conversion cost was about N1.5 million.
Ahmed stressed that the benefits of lower fuel costs should eventually be reflected in cheaper transportation for commuters and passengers, particularly those using commercial and ride hailing services.
He said the clean mobility initiative was not intended to immediately eliminate petrol and diesel, noting that Nigeria would continue to use a combination of energy sources, including CNG, electric vehicles, petrol and diesel.
The Issues
The availability of CNG is a major factor in determining whether vehicle conversion can deliver sustained savings for users.
Ahmed’s position is that affordability cannot be considered separately from access. A lower priced fuel offers limited benefit if motorists cannot reliably find it after investing in vehicle conversion.
Developing that access requires significant investment across the CNG value chain. The government therefore expects private sector participation alongside its role in supporting both demand and supply.
Public perception is another challenge. Concerns about CNG safety could discourage motorists from converting their vehicles, making awareness and user education important to wider adoption.
What’s Being Said
“Anything that is not available is not affordable. For it to be affordable, it has to be available.” – Ismaeel Ahmed
“Government catalyses. It catalyses on both ends, the demand side and the supply side.” – Ismaeel Ahmed
“Your GDP going up or down means nothing to me if the person in the village, town or suburb has not told me that he has seen some movement in his life. That is my economic index.” – Ismaeel Ahmed
What’s Next
Pi CNG/EV will continue engaging users and service providers through its stakeholder engagement mechanism, with feedback from users expected to inform improvements to the clean mobility programme.
The CNG/EV Users Forum also plans to document members’ experiences and develop recommendations on strengthening Nigeria’s CNG and EV ecosystem.
The forum is seeking continued engagement with Pi CNG/EV on public sensitisation, safety education, capacity development and other aspects of the programme.
Bottom Line
Pi CNG says making CNG affordable requires more than reducing its price. Reliable supply and sustained investment across the value chain are necessary for motorists and passengers to realise the economic benefits of the fuel.
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