FG’s gas-powered vehicle scheme runs into major hitch nationwide

There are indications that the Federal Government’s (FG) strategy, meant to convert Nigeria’s vehicle transportation service business away from fossil fuel (petrol) to gas, has struck a severe problem.

Industry stakeholders noted that the initial enthusiasm has been replaced by frustration owing to supply shortages and insufficient infrastructure.

They added that inadequate refill facilities and the gas itself around the country have been the users’ and investors’ nightmare in recent times.

The scarcity of the commodity is occurring against the backdrop of abundant supply of fuel across all regions of Nigeria, a condition which has already started tempting the gas users back to re-converting their vehicles to petrol from gas.

The CNG program is essentially nonexistent in some states, while it is physically present in others—for example, conversion kits are available, autogas vehicles are already produced, and refill stations are already established—but the degree of activity is either nonexistent or very little.

While conceding the existence of these difficulties, the Presidential CNG Initiative office and important partners asserted that the program has not faltered and that efforts are being made to restore the progress that has been made.

FG's rewards

To entice private companies to enter the CNG market, the federal government implemented a number of incentives. One of these was the elimination of Value Added Tax (VAT) on CNG infrastructure and equipment, as well as conversion kits for liquefied petroleum gas.

President Bola Tinubu ordered all Federal Ministries, Departments, and Agencies to buy CNG cars and take other actions to ensure its widespread use on May 13, 2024.

Even kits for the free conversion of one million commercial cars nationwide were funded by the government. According to the government, public transportation would become more affordable for regular Nigerians with the free conversion and inexpensive price of CNG.

However, studies have shown that one of the reasons for the shortage of the few CNG stations that are now in place in Abuja and other parts of the nation is the government's unwillingness to provide certain licenses for the construction of these stations.

Additionally, some of the users that spoke accused others of sabotage.

According to a truck driver: "I think that some downstream stakeholders, such as operators and potentially regulatory bodies, profit from the importation of gasoline and are aware that more people will stop using gasoline if they can easily purchase CNG. They will not be able to make that money again if they stop using gasoline.

“President Tinubu is the one that said people should convert to CNG. So after we have converted to CNG, why can’t we buy it easily? If the stations are not enough, why will the people in government refuse to allow more stations to be established”?

Another commercial taxi operator said: “Many commercial vehicles have converted to CNG. Even many private car owners also converted to CNG but now, they are getting discouraged because of the long queues at gas stations.

“As a result of the long queues, many of them cannot spend four, five or six hours to buy CNG. They don’t have such time. So they are now reverting to petrol. That is not the way to go.”

According to a truck driver for one of the biggest cement companies in the nation, he and his coworkers visit refill stations every six days on average to refuel their CNG-powered vehicles.

"You will see our trucks in line every time you go by this route," he said. It is not just heavy-duty trucks. Even taxi drivers and car owners suffer alongside us. Things are visible to you. Observe the lengthy lines (indicate the several lines for vehicles and trucks).

"I am not at all happy. Our company offers everyone of us N20,000 when we arrive. Imagine receiving N20,000 and then having to wait in line for six days to purchase gas. That sum of money is completely insufficient. We are in pain.

Situation in Nasarawa and Abuja
More than 49 gas stations are located on both sides of the 38-kilometer Abuja-Keffi Road, which is always crowded. Regretfully, there is just one CNG station on the same road.

Located in Ado, Karu Local Government Area, Nasarawa State, the sole CNG refill station is presently non-operational. Since CNG is substantially less expensive than gasoline, it was introduced only about eight months ago with the goal of saving drivers and commuters a large amount of money.

Some drivers stated that they would have switched to CNG for their cars, but they were irritated by the dearth of conversion facilities and the broken CNG filling stations.

Greenville's Liquefied Natural Gas/Compressed Natural Gas (LNG/CNG) station, situated in Lafia, the state capital, is the only operational CNG station in Nasarawa State.

Adamu Suleiman, a commercial driver, was upset about the change and stated that if there had been CNG refill stations placed along the route like the gas refueling stations, he would have been utilizing it.
When President Bola Tinubu introduced this plan last year, I considered converting my car at one point, but several of my friends, with whom I spoke, advised me to wait a little before acting. I appreciate their sage counsel when I reflect on today since without it, where would I have been obtaining the CNG?

One of the smartest choices he has ever made, according to John Ebiam, another professional driver who travels the Makurdi-Abuja route, was to disregard the advise to convert his car.

"Where are the stations for CNG refills?" He posed a rhetorical question.

"Like some of my friends are crying right now, I would have been crying too."

Mr. Longe Lege, a public servant in Abuja, has been compelled to go back to gasoline because to his irritation with the lengthy hours at the CNG stations.

He claimed that he does not have the luxury of spending five or six hours at the petrol station because of his hectic schedule.

His words, “It’s affordable and saves a lot of costs compared to petrol. I used to spend between N50,000 and N60,000 per week on petrol to go to work but with CNG, it’s about N15,000. But the major challenge currently is the availability of gas.

“The 10 CNG stations servicing Abuja is grossly inadequate to meet the huge demand of CNG users. Some CNG users doing Bolt or Uber taxi services even sleep at gas stations just to buy gas. Due to the stress of getting gas, I have not been buying gas for a while now because I honestly do not have the patience to spend 4 hours every two days to buy gas.”
Ahmed Kunle, a taxi operator in Abuja disclosed that he spent eight hours at a CNG station last week.

He said, however, that the average time on the queue at the Mobil Station by the Dunamis Dome is three to four hours.
Findings revealed that in the whole of Abuja, there are only 11 CNG filling stations and 45 in the whole country.

Out of the 11 in Abuja, only three are reliable, leaving CNG vehicle owners in frustration and regrets, with some now abandoning the CNG and reverting to running their vehicles on petrol and diesel.

Lagos

In some stations in Lagos state, including Ikeja, Mushin and Apapa, CNG product was not dispensed as the attendant said they were out of stock asking us to try other stations or come back some days later.

However, sources near NIPCO refill stations contended that measures to lessen the crisis were already underway.
"Yes, I can attest to the difficulties with product availability, which occasionally arise in all product deliveries or supplies. There are numerous explanations for this, including a delay in the product's shipment or clearing at the port.

There is a shortage of the product kits at several sites in Lagos. Lack of equipment to install and convert to CNG operating vehicles was confirmed by a source in one of the government-approved outlets.

"We have not had the kits from the government source for a time," he said. But unlike the government-subsidized equipment, we have some to offer from our own inventory. I am not sure why it is not coming in right now, but that is the way things are in all of our outlets.

Southeast
It seems more unexpected that the South East is only now beginning to embrace the project, some two years after it was introduced.

The government of Enugu State recently purchased fifty CNG buses and anticipates that the next fifty will begin service.
At the moment, the first fifty are parked in Michael Ìkpara Square.

The buses will shortly be inaugurated and put on the road, according to Dr. Obi Ozor, the State Commissioner for Transportation.

The government of Ebonyi State has only begun to embrace the CNG program, but it has not yet implemented the actual services.

According to Prof. Grace Umezuruike, Secretary to the Ebonyi State administration (SSG), the administration has acquired a few luxury CNG buses. She did not provide the number thus far purchased.

According to her, the state governor gave the buses permission to operate on a number of routes in order to provide free transportation for children to go to school and civil personnel to go to work.

Even worse, Abia State is reportedly not interested in purchasing CNG buses and instead plans to introduce electric buses shortly.

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