Nigeria will benefit greatly from CNG initiative

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The Federal Government has assured Nigerians that compressed natural gas (CNG), an initiative of the government to provide an alternative to petrol and diesel, will benefit Nigerians in the long term.

The Minister of State for Petroleum (Gas), Ekperikpe Ekpo, and his Information and National Orientation counterpart, Mohammed Idris, stated this at the launch of the Rideshare Conversion Incentive Programme and the MyCNG app, which was held at the Portland/NASENI Centre Abuja on Friday.

The ministers, in their remarks, said the CNG has not only affirmed the commitment of the Federal Government to provide accessible and affordable transportation for the citizens but also to provide a cleaner, more environmentally friendly alternative to traditional fuel as well as job opportunities and technical skills to the youth-dominated population.

Ekpo describes the rideshare sector as a vital part of Nigeria’s urban transportation system, adding that the CNG will afford the country to make use of its abundant natural gas reserves as a key player in the global energy landscape.

“This initiative reaffirms our commitment to providing accessible and affordable transportation for our people. As you are all aware, Nigeria is blessed with abundant natural gas reserves, positioning us as a key player in the global energy landscape.

“However, our mission is not just to harness this resource for economic gain but to ensure that its benefits are felt by every Nigerian, especially in ways that directly impact their daily lives.

“The rideshare sector is a vital part of our urban transportation system, providing flexible and cost-effective mobility solutions to millions of Nigerians, particularly our youth. However, the rising costs of traditional fuels have posed a significant challenge to both drivers and passengers, often leading to higher fares and reduced access to affordable transportation.

“The CNG Conversion Incentive Programme, in conjunction with the My CNG App, is a bold response to these challenges. By offering a 50% discount for rideshare drivers upon sign-up and scheduling through the My CNG App, we are not only making CNG a more viable option but also easing the financial burden on drivers. This will translate to more affordable transportation options for users.

“CNG, as we know, is a cleaner and more environmentally friendly alternative to traditional fuels. Its adoption is in line with our national objectives to reduce carbon emissions and contribute positively to global efforts to combat climate change.

“By transitioning to CNG, we are taking decisive steps towards a greener, more sustainable future for Nigeria. We are committed to expanding and enhancing our efforts to promote the adoption of CNG and other alternative fuels across all sectors of our economy,” Ekpo said.

According to the Information Minister, who was represented by the Director General, Federal Radio Corporation of Nigeria (FRCN), Dr. Mohammed Bulama, CNG will provide a cheaper and cleaner alternative to petrol and diesel and will also bring relief to Nigerians through the provision of accessible transportation and jobs for the teeming youth population through technical skills transfer.

“Gas has become central to the economy of Nigeria. CNG will bring relief to lives and livelihoods by making gas available to people and machines. The drivers will benefit immensely from this initiative. It will provide jobs and technical skills to Nigerians, especially the youth. This is indeed another journey towards development and the future. The future is gas.

“As a cheaper and cleaner alternative to petrol and diesel, it emboldens our aspirations as a country that is committed to the much-talked-about energy transition and the economic well-being of its people.

“By virtue of the new conversion initiative programme and digital application being launched, the segment of our working population that is made up of rideshare drivers stands poised to benefit from Nigeria’s CNG conversion. And when the drivers benefit, their paying passengers will benefit by extension as well,” the Information Minister said.

The programme director and CEO of the Presidential CNG Initiative (PCNGI), Michael Oluwagbemi, while highlighting the inherent benefits of CNG, said the impact will be felt across the board, boost the economy of Nigeria, and improve the lives of Nigerians.

“We know that transportation is responsible for about 14 to 15 per cent of what an average family spends. It contributes about 1.55 per cent to the transportation sector of the overall economy and averages 5 to 4 per cent growth on a year-to-year basis.

“In our country, the vehicle population ratio is about 60 vehicles to 1,000 people. This is quite low compared to many other countries like Brazil and India, with 249 and 250 vehicles per 1,000 people, respectively. 41 per cent of the 12 million vehicles in Nigeria are concentrated in urban areas. This means that the real opportunity for moving people around in an environment where there is low vehicle ownership is right here, with technology available across the land in the last 10 years.

“The global ride-hailing market is valued at about $113 billion as of 2020 and is anticipated to reach a value of about $230 billion by 2026, registering about 8.75 per cent growth between 2021 and 2026. In 2020, revenue generated in Africa alone from rideshare alone was about $2.5 billion, with Nigeria accounting for about $292 million and also accounting for 15 percent of the 48.6 million people that used rideshare. This is quite significant. That means Nigeria accounted for about 7 million people who used rideshare in 2020. Young people in our cities across Nigeria all used rideshare services.

“CNG for the rideshare industry will mean that the average player of Uber, Bolt, InRide, or LagRide, as the case may be, will reduce drastically in our urban centres. It will mean our young people going to work, going to school, going to church, and going to the mosque will be able to afford transportation. CNG is not just a revolution; it is about looking inward for the first time in a long time to use resources God has blessed us with.”

The Executive Vice Chairman of the National Agency for Science and Engineering Infrastructure (NASENI), Khalil Suleiman Halilu; the CEO of NASENI Portland Gas, Folajimi Lai Mohammed; Head Commercial, PI-CNG Ltd., Tosin Coker; Bernard Bulus and Temitope Arulogun of Bolt and Uber, respectively, all hailed the initiative, saying it is a win-win situation that will allow technology to drive the transformation of the Nigerian economy and will also give room for energy efficiency, reduce the cost of living, enhance climate action, provide youth support and job creation, as well as poverty alleviation.