Nigeria Bets on Natural Gas to Curb Soaring Transport Costs

The decision of Nigeria’s president, Bola Ahmed Tinubu, to remove petrol subsidies following his election last year resulted in a surge in transportation costs, triggering the country’s worst cost-of-living crisis in several decades. In response, the government launched a compressed natural gas (CNG) initiative to utilize the country’s vast gas reserves, which it promised would reduce transport expenses by almost 50%. The initiative, intended to convert 1 million vehicles over the next three years, has received an investment of at least $200 million. However, it faces numerous obstacles, including slow implementation, limited infrastructure, and public skepticism. For example, CNG conversion and filling stations are only available in 13 of 36 states, highlighting the lack of infrastructure. Due to these challenges, the initiative has only converted 100,000 vehicles so far. While the government continues to tout CNG’s benefits, it acknowledges the challenges, stating that it is working towards addressing them.

SOURCE: AP NEWS