The Chief Executive Officer of AHA Strategies, Mr Ademola Adigun, discusses the rise of Compressed Natural Gas as a revolutionary alternative to traditional fuels in Nigeria with Ajibade Omape
What are the key drivers behind the push for CNG as an alternative to traditional petrol and diesel in Nigeria?
The key driver is price—that’s it. There are no other drivers; it’s solely about cost. CNG is significantly cheaper than petrol right now, and any other potential environmental benefits are not the reason we’re using it; we’re using it because of the price. It takes only a quarter of the cost of a full tank to cover the same distance with CNG.
Well, I’m not sure it’s a transition at this point; it’s more of a transfer. CNG does not replace petrol or diesel; it serves as an alternative. If you’ve converted your car to CNG, you still retain your petrol or diesel option.
So, it’s not a transfer but rather an alternative for those who can’t afford petrol or diesel. The government’s role should be to ease the burden of living for most Nigerians.
Given the rising fuel prices, is CNG a viable option for the average citizen?
A full tank from Lagos to Ibadan in a regular car costs about N50,000, whereas using CNG would only cost around N1,900. Look at the math—you’re looking at less than three per cent of the cost of transportation.
That’s significant. However, viability depends on where you live, not on the average citizen.
You need to be in an urban centre. If you live in areas without CNG stations, it doesn’t make sense. In urban centres like Lagos, Abuja, and Ibadan, it’s practical. But if you’re in rural areas, it might not be affordable or convenient. So it’s not necessarily for the average citizen, but it is viable for urban dwellers and some transporters.
In the long run, what are the potential impacts of using CNG on a vehicle’s engine performance and overall durability?
There’s no correlation between CNG and engine performance or durability. Just as petrol and diesel do not inherently determine these factors, fuel type does not influence your engine’s performance or durability.
Now, if you’re discussing engine oil or other maintenance factors that affect durability, that’s a different issue. Fuel can be of any nature—gas, liquid, or even electricity—and it doesn’t contribute to engine performance or durability.
What should vehicle owners be aware of regarding the maintenance of cars that run on CNG?
It’s the same principle across different fuel types. Whether you have a petrol engine, diesel engine, or a CNG-powered vehicle, each fuel type operates independently of servicing or maintenance costs. If you’re converting to CNG, you’re simply opting for an alternative fuel source, not necessarily enhancing performance or durability.
Contrary to some beliefs, CNG engines do not underperform compared to petrol engines. The only distinction is that CNG is more environmentally friendly than LPG, petrol, or diesel.
However, the fundamentals of engine maintenance and structure do not depend on the fuel type. Engine oil, spark plugs, and other components affect durability, but the fuel source itself does not impact engine performance.
The movable parts of the car dictate performance, not the type of fuel used.
From an environmental perspective, what contribution can CNG make to Nigeria’s cleaner energy transition?
I wouldn’t categorise gas as a clean energy transition. Nigeria is opting for gas because it has an abundance of it, making it a practical choice.
While petrol is comparatively cleaner than diesel, the emissions largely depend on the vehicle’s design and mechanics. Generally, CNG produces lower emissions than petrol or diesel engines due to its combustion properties.
Gas has a lower density than petrol and diesel, which leads to reduced emissions during combustion.
What infrastructure challenges do you foresee in the widespread adoption of CNG in Nigeria?
The biggest challenge right now is the availability of gas. Although Nigeria has more gas than it can utilise if everyone converted to CNG, the infrastructure to supply gas to stations nationwide is still lacking.
NIPCO, a key player in CNG, is working on establishing gas pipelines in urban areas, but coverage is insufficient for non-urban regions. For residents in these areas, refuelling their tanks could pose a significant challenge.
Additionally, the conversion cost is a barrier. Average conversion costs range from N600,000 to N700,000 for regular cars, N750,000 to N850,000 for SUVs, and over 1m for larger trucks. This financial hurdle can deter potential users, and travelling outside urban areas without refuelling could leave drivers stranded.
The good news is that using CNG does not eliminate petrol use; drivers can switch back to petrol or diesel with the press of a button, making the conversion process less complicated than many believe. It’s akin to operating a generator.
Interestingly, it’s even possible to use palm oil in diesel cars, although palm oil isn’t environmentally friendly and tends to be more expensive.
Could you highlight the advantages and disadvantages of CNG as a fuel source for Nigerian motorists and the broader oil and gas industry?
CNG is part of the oil and gas industry, which means we’re utilising our resources more efficiently. For instance, while kerosene was once the primary cooking fuel, many now use gas, as both derive from oil. The distinction is that kerosene is a heavier derivative of crude, making it unsuitable for aviation fuel. Whether compressed or liquefied, gas remains gas; we’re simply maximising its efficient use while providing a cheaper alternative.
Regarding engine performance, some claim CNG results in lower thrust, but I haven’t personally experienced this. Performance largely hinges on various factors, including the engine itself.
The advantages of CNG are primarily its lower cost and potential for reduced emissions. However, its availability remains a concern, and if not handled properly, there’s a risk of explosion, particularly with substandard products or inadequate installations.
What policies or incentives should the Nigerian government implement to promote the adoption of CNG on a large scale?
Several states have initiated subsidies for conversion, but on a larger scale, I believe public transporters should receive the greatest incentives. By prioritising subsidies for public transport, we could lower overall transportation costs for everyone.
For private users, the cost comparison is compelling. If a full tank of petrol costs around N65,000 and lasts for two weeks, converting to CNG could allow the same amount to last two months, effectively negating the initial conversion cost over time.
This is the kind of policy the government should pursue. Currently, the policies in place are decent, but there’s always room for improvement.
How sustainable is CNG as a long-term alternative energy source?
Anything related to fossil fuels is no longer considered a long-term solution, as they are non-renewable resources. The world is progressively shifting towards renewable energy sources such as electricity and solar power, especially in the automotive sector. Some countries, like Ethiopia, have even banned non-electric vehicles altogether. However, challenges remain, particularly regarding the purchase cost and the price of electricity for recharging electric cars, which often takes longer than refuelling traditional vehicles.
The transition from renewable to non-renewable energy sources will require time, and technological advancements can occur rapidly. With the rising investments in battery technology, improvements in efficiency and cost could accelerate this shift sooner than anticipated.
Is it a stop-gap solution, or does it have lasting potential?
I view CNG as a stop-gap solution rather than a long-term option. The outcomes of the American elections could significantly influence the future of fossil fuels. If the Democrats win, current environmental standards in Europe will likely curtail the long-term viability of CNG. Conversely, if the Republicans win, fossil fuels may enjoy a prolonged lifespan. Thus, global politics play a crucial role in shaping Nigeria’s energy direction and strategies.
With Nigeria being a major crude oil producer, do you see the rise of CNG impacting the country’s demand for traditional fuels?
Not in the short term. I recently reviewed petrol consumption figures, and despite rising prices, Nigeria is consuming fuel at increasing rates. About a month ago, we were using 41 million litres per day, and now we’re up to 48 million litres daily. This spike could be linked to smuggling and price inconsistencies. However, Nigeria’s consumption trends don’t necessarily align with expected economic indicators. We currently produce crude oil but still import petrol.
What implications could this have on crude production and the oil and gas sector?
There will be very little impact. CNG is derived from gas, and its rise won’t significantly affect crude oil production or the broader oil and gas industry.
Are there any safety concerns that Nigerians should be aware of, especially with recent reports of CNG vehicle explosions? How can these hazards be mitigated?
So far, only one explosion incident has been reported, and that was attributed to the use of poor-quality kits and unlicensed installation. As with anything, improper handling—like using substandard materials for tank welding—can lead to danger. I advise people to go to designated conversion centres, use high-quality materials, and exercise caution in their use.
Do you anticipate any significant long-term effects of CNG adoption on overall fuel consumption in Nigeria?
As the price of petrol continues to rise, I mean, in Abuja, it was 1,150 some days ago, it won’t make sense to be using petrol anymore, at least within Abuja. So obviously, consumption should drop.
How do you foresee the role of CNG in Nigeria’s energy mix evolving in the next decade, especially considering the growing global emphasis on decarbonisation?
I think it will rise. Right now, it should be less than 2% of total consumption. In the next two years, we could get 10 per cent, and then, like everything that happens in every sector of the world, there will be much acceleration and geometric progression, where in the next five, seven years, it should be like 20 per cent, 25 per cent, 30 per cent, and in the next 10 years, maybe 50 per cent of the energy mix.
It’s cleaner energy, but it’s not clean energy. So clean energy is renewable energy. It’s cleaner than some other sources of energy, and decarbonization has other factors. I mean, if you use fossil fuels, you can’t stop carbon emissions, whether you’re using paraffin or whatever you call it, there will be some carbon emission, and there may be lower units.
What lessons can Nigeria learn from other countries that have successfully adopted CNG? Are there any best practices or models that should be followed?
I can’t think of any country that has successfully adopted CNG. I know many countries. I mean, CNG is not as new as people make it to be.
As far back as the mid-80s, we had LPG in some cars imported, very few cars had it at that time.
But again, it’s always been a back option for those who don’t have it, and I’ve rarely seen any car that is fully on gas. It’s an option.
Looking at Dangote’s refinery set to start production in two of its assets, is there a significant effect of Dangote’s oil production on the general production of oil in Nigeria?
What Dangote’s does for us is that it makes our crude easier to market. So it’s a form of energy security, but not absolute. So when your refineries are working within your country, your crude has a destination.
Now, if we produce locally and the local absorption of our crude or local utilisation is about a million barrels, life is easier for us regarding what we sell. But if we sell in naira, there is a cost loss in dollars.
Would you say Dangote’s petrol production could significantly help reduce Nigeria’s dependency on imported petrol?
Yes, it should. I mean, I’m surprised he’s gone to court anyway.
But again, he has a right to do what he wants in court. But automatically it should.