President Bola Ahmed Tinubu is making waves in Nigeria with his bold decision to remove fuel subsidies on May 29, 2023. This daring move aims to create a sustainable energy future and will be remembered for its significant impact on the nation’s economy.
In less than two years, the effects of this policy are becoming clear, benefiting not just motorists and transporters, but also businesses and households across the country. The long queues for petrol that plagued the transportation industry have largely vanished, as more people show interest incheaper alternative sources of energy source, particularly Compressed Natural Gas (CNG) and electric vehicles.
Recently, new queues have appeared at filling stations, driven by the growing demand for gas. On August 12, 2024, President Tinubu inaugurated 30 hybrid CNG-powered buses to help offset the effects of removing petrol subsidies. He highlighted that CNG is a cost-effective, safer, and more environmentally friendly option for transportation.
“More than 80 percent of our petrol demand comes from commercial vehicles,” President Tinubu explained. “Switching to gas will not only reduce our costs but also help combat corruption tied to petrol subsidies.” He called this removal of the subsidy an “economic salvation” for the country and future generations.
He cited examples from countries like India, where CNG has been mandatory for commercial vehicles since 2004. According to the President, adopting CNG in Nigeria can lead to significant savings, as commercial vehicles currently account for a substantial portion of the nation’s petrol expenses.
“We promise you, “The solution is here. We have it. We will work on it. things will get better. Prosperity will be achieved.
“I extend my heartfelt gratitude to Innoson Motors and all those dedicated to transforming the narrative in our country. Harnessing natural gas to fuel our transportation sector is a crucial step forward. Like many nations, Nigeria must strive for greater productivity by utilizing our own natural gas resources. Embracing this shift is not just beneficial; it is an economic imperative,” the President remarked.
Nigeria boasts the 9th largest natural gas reserves in the world, amounting to 209.26 trillion cubic feet as of January 1, 2024. As the nation shifts towards CNG, many motorists are converting their vehicles to this more affordable option.
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“I can fill my gas cylinder for just N5,000 and work a whole day, compared to N65,000 for petrol,” shared Ibrahim Bala Aminu, a transporter in Abuja. Another local mechanic, Anosike Uzo, described gas as “a game changer” for the Nigerian transportation sector.
At a recent press briefing at the Presidential Villa, Engr. Michael Oluwagbemi, Programme Director of the Presidential CNG Initiative, announced significant developments and investments in CNG infrastructure. He mentioned that over $491 million has been invested in the CNG initiative, creating more than 9,000 direct jobs and 75,000 indirect jobs.
“In the past year, we’ve established 200 new conversion centers across Nigeria, raising our vehicle conversion capacity by almost 3,000 percent. Our goal is to support Tinubu’s promise of a cheaper energy by making CNG accessible to everyone,” said Oluwagbemi.
The administration is also taking safety seriously, implementing measures to ensure that only properly converted vehicles are allowed at gas stations. They are working with the Nigerian Gas Vehicle Monitoring System to avoid accidents and ensure compliance with safety regulations.
The Nigerian government is focusing on expanding the CNG network, with plans to open over 150 new refueling stations in the next 18 months. “Queues for gas will eventually reduce as we map out strategic locations for filling stations. Our Last Mile Gas Infrastructure scheme will ensure CNG is available to everyone,” Oluwagbemi added.
Additionally, training programs are underway to develop a skilled workforce for the growing CNG industry, with plans to train over 5,000 technicians in 2025.
President Tinubu’s initiatives for CNG and electric vehicles are seen as essential steps toward achieving a more sustainable energy future in Nigeria. “Tinubu’s promise of a cheaper energy is not just about cost savings; it’s about creating a cleaner and more efficient transportation system that benefits everyone,” said Bayo Onauga, Special Adviser to the President on Information & Strategy.
