CNG Initiative Faces Major Setbacks Due to Poor Infrastructure, Expert Reveals

The Federal Government’s Presidential Compressed Natural Gas (CNG) initiative is struggling to gain momentum due to significant infrastructure gaps, according to industry expert Mike Osatuyi, former National Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN).

CNG Program Stalls Despite High Potential

In an exclusive interview with the News Agency of Nigeria (NAN) in Lagos, Osatuyi expressed disappointment that nearly two years after its launch, the CNG program has failed to deliver meaningful results. He highlighted growing queues at CNG stations in major cities like Lagos and Abuja as evidence of the initiative’s struggles.

Critical Infrastructure Gaps Identified

Osatuyi pinpointed several key challenges:

• Severe shortage of CNG refueling stations
• Inadequate vehicle conversion centers
• Poor distribution network in key areas including Zuba-Kubwa Road, Airport Road, Ibafon, and Ibadan Tollgate

“The current infrastructure cannot support the government’s ambitious plans,” Osatuyi stated. “We’re seeing frustratingly long queues at the few operational stations, which defeats the purpose of this transition.”

Missed Opportunities and Slow Implementation

While praising the CNG initiative as a patriotic move, the IPMAN former secretary criticized the slow implementation pace. He noted that Nigeria could have reduced petrol consumption by up to 50% if the program had been properly implemented two decades ago.

Osatuyi acknowledged some positive steps, including:

• Appointment of a dedicated Minister of Gas
• Formation of the Pi-CNG committee led by FIRS Chairman Zacch Adedeji

However, he emphasized these measures have yet to translate into tangible progress on the ground.

Budgetary Concerns and Implementation Strategy

The expert raised concerns about the current budget allocation for the CNG initiative, arguing it doesn’t reflect the urgency of Nigeria’s energy transition needs. He particularly criticized plans to introduce 200,000 CNG-powered buses and tricycles without first addressing fundamental infrastructure requirements.

Osatuyi urged the government to:

• Adopt a more inclusive approach involving industry stakeholders
• Leverage existing IPMAN filling stations for CNG distribution
• Avoid creating new infrastructure from scratch to reduce costs

Key Facts About Nigeria’s CNG Initiative

The Federal Government activated its CNG Conversion Incentive Program in 2024 across eight states:

• Oyo
• Lagos
• Ogun
• Edo
• Delta
• Kogi
• Federal Capital Territory (FCT)
• Nasarawa

Recent Developments

• Ogun State Governor Dapo Abiodun has voiced concerns about high conversion costs limiting CNG adoption
• The Federal Government launched a N2.5 billion credit scheme in March to support vehicle conversions and local production of conversion kits

For the program to succeed, Osatuyi stressed the need for stronger policies, substantial infrastructure investment, and broader industry collaboration.

Full credit to the original publisher: Nairametrics