N785.6bn investment threatened
•Refill stations, conversion centers, other facilities grossly inadequate
•CNG buses, other equipments rot in parking lots
•Some private users reverting to petrol
•State-by-State account paints same picture
•Why gas couldn’t reach North
•Current pain is temporary – Presidential CNG Initiative
By Soni Daniel, Emma Ujah, Emma Amaize, Ediri Ejoh, Miram Eko, Wole Mosadomi, Bashir Bello, Ademola Akinyemi, Umar Yusuf, Ndahi Marama, Marie-Therese Nanlong, Peter Duru, Charly Agwam, Ibrahim Hassan-Wuyo, Haruna Aliyu, Femi Bolaji, Musa Ubandawaki, Boluwaji Obahopo, Salisu Idris, Samuel Oyadongha, Jimitota Onoyume, Egufe Yafugborhi, Ike Uchechukwu, Chioma Onuegbu, and Ochuko Akuopha.
There are indications that the Federal Government’s (FG) scheme, designed to transition Nigeria’s vehicle transportation service industry away from fossil fuel (petrol) to gas, has encountered a major hitch.
Industry stakeholders told Financial Vanguard that the initial enthusiasm has been overtaken by frustration due to supply shortages and insufficient infrastructure.
They said that inadequate refill facilities and the gas itself across the country have become the users’ and investors’ nightmare in recent times.
The scarcity of the product is coming against the backdrop of adequate supply of petrol across all parts of Nigeria, a situation which has now started luring the gas users back to re-converting their vehicles to petrol from gas.
In several states, there is virtually zero presence of the CNG scheme and in others with physical presence including availability of conversion kits, in-built autogas vehicles already supplied and refill stations already set up, but level of activities are either non-existence or skeletal.
However, the office of the Presidential CNG Initiative, as well as key stakeholders, while acknowledging the existence of these challenges, said the programme has not derailed, adding that efforts are underway to restore progress.
FG’s incentives
The Federal Government had put in place several incentives to encourage private business organisations to go into the CNG business, including the removal of Value Added Tax (VAT) on CNG equipment and infrastructure and Liquified Petroleum Gas, including conversion kits.
On May 13, 2024 the President, Bola Tinubu, directed all Federal Ministries, Departments and Agencies to purchase CNG vehicles and other steps for its widespread use.
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