"We're Ready": Tinubu Approves Alternative Fuel as Experts Raise Concerns Over Cost

"We're Ready": Tinubu Approves Alternative Fuel as Experts Raise Concerns Over Cost

  • President Bola Tinubu has approved the establishment of the Presidential Compressed Natural Gas initiative
  • He said the initiative targets about 11,500 CNG-enabled vehicles and 55,000 CNG conversion kits for existing petrol vehicles
  • But experts have raised concerns over the competence and capacity of those who will undertake the conversion

Some oil and gas industry experts have expressed worry that converting vehicles to Compressed Natural Gas (CNG) may be unaffordable for Nigerians.

The experts expressed their worries in separate interviews where they said the government might have to subsidise the cost of having Nigerians embrace the CNG as an alternative to petrol.

CNG vehicles, Tinubu initiatives
President Bola Tinubu approves conversion of vehicles to CNG Credit: KOLA SULAIMON / Contributor
Source: Getty Images

Concerns mount over capacity, competence of converters

While commending the government for the plan as part of measures to reduce the effect of the fuel subsidy removal, they also raised issues over the competence and capacity of those who will be engaged for the job.

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Reports say the branch National Chairman of Liquified Petroleum Gas Retailers (LPGAR), Abayomi Olarinoye asked the government to undertake the process carefully.

Olarinoye specifically told the government to ensure those engaged in the conversion are the best in the industry and have the required training and equipment to avoid having citizens cheated.

He added that all standards must be met, urging that Nigerians should not be exposed to hazards before, during, and after the conversion process.

Tinubu's initiative targets 11,500 vehicles for conversion

The development comes as President Bola Tinubu approved establishing the Presidential Compressed Natural Gas initiative.

The CNG initiative seeks to reduce the impacts of petrol subsidy removal on Nigerians by lowering energy costs.

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The Special Adviser to the President on Media and Publicity, Ajuri Ngelale, disclosed the initiative on Friday, August 18, 2023.

Ngelale stated that the initiative targets over 11,500 new CNG-enabled vehicles.

It also targets about 55,000 CNG conversion kits for existing petrol vehicles.

CNG to boost manufacturing, job creation

The plan seeks to strengthen in-country manufacturing, local assembly, and job creation, which aligns with the presidential directive.

Punch reports that Ngelale said the plan includes a total adoption strategy, which will consist of equipping workshops, local assembly, and creating jobs as critical points, with an initial focus on mass transit vehicles.

The plan follows the initiative of Petroleum marketers in Nigeria, who say they are equipping their stations with vehicle conversion kits.

Others say that many petrol trucks have been converted for CNG use and that they have brought in Indians to engage in the vehicle conversion process in the country.

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Petrol marketers add 7,000 filling stations to cheap, alternative fuel register

Legit.ng reported that according to reports, 7000 additional filing station owners across Nigeria had registered their outlets to participate in autogas dispensing projects, including Compressed Natural Gas and Liquified Petroleum Gas into cars.

A Report says some manufacturers from Asia with expertise in vehicle conversion have arrived in Nigeria to convert cars to run on autogas, LPC, LNG and CNG.

Oil marketers reportedly engaged the Asians as more retail outlet owners showed interest in dispensing autogas.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng