Nigeria’s Abuja (AP) Ahmed Halilu knew his e-hailing taxi company in the capital, Abuja, was going to suffer significant losses when Nigerian President Bola Tinubu stopped the expensive subsidies that made gas accessible for many in the most populous nation in Africa.
In the months following last year’s ruling, the price of gasoline more than tripled, causing transportation expenses to soar and the nation to experience its worst cost-of-living crisis in a generation. This resulted in a sharp decline in Halilu’s passenger volume and, eventually, his profits.
In August, Nigerian authorities announced a compressed natural gas (CNG) project to access its massive gas reserves, Africa’s largest, and roll out CNG buses while converting gasoline-powered vehicles to use it. They claimed that this initiative would ultimately reduce transportation costs by over 50%.
According to Michael Oluwagbemi, the initiative’s director, the government has invested at least $200 million in the project, and more than 100,000 vehicles have been modified to run on compressed natural gas (CNG) or the hybrid option of CNG and gasoline.
In the next three years, the government wants to convert one million of Nigeria’s more than 11 million vehicles, but experts say the process has been sluggish, citing inadequate infrastructure and bad execution.
Despite being one of Africa’s largest oil producers, Nigeria is dependent on imported refined petroleum products due to its refineries’ difficulties, which have caused production to drop to its lowest level in decades due to widespread oil theft.
The elimination of subsidies was intended to save the government money and support declining foreign investments, along with other measures Tinubu implemented after taking office in May of last year.
But it has changed the pricing of almost everything, and rising transportation expenses are forcing many to walk instead of drive to work.
Making the switch to gas is challenging. Low public knowledge has also hindered the government’s initiative’s success, in addition to the fact that 13 of Nigeria’s 36 states lack a sufficient network of CNG conversion and filling stations.
This has allowed for misunderstandings and hesitation on the part of drivers.
According to Halilu, the lack of orientation is the reason why people are not enthusiastic about it. He switched his car, and now his e-hailing firm saves $240 a month on gas.
With the CNG conversion claims, which regulatory bodies have stated are false unless the equipment is put improperly, some drivers have voiced concern that their vehicles may blow up. Authorities in southern Edo state discovered that an unaccredited seller had repaired a CNG-powered car that exploded.
Filling stations are limited, and the few conversion workshops that are available are sometimes packed with commercial trucks waiting for days to convert to CNG at discounted prices, even in Abuja and Lagos, the country’s economic center.
In the meantime, switching private automobiles would cost 20 times Nigeria’s $42 minimum monthly income.
To refill his cylinder, a coworker had to go almost 200 kilometers (124 miles) to Abuja, according to Abdul Manasseh, an Abuja e-hailing taxi driver.
The program has also been hindered by Nigeria’s inadequate gas pipeline, which makes it challenging to supply stations. The majority of the eastern and northern states have thus not been covered.
The difficulties are similar to those faced by Nigeria, where private operators have been sluggish to deploy electric vehicles. Due primarily to underinvestment and vandalism, the majority of the nation’s 210 million residents still have access to a functional power supply.
Tosin Coker, the initiative’s head of commercial matters, stated that the government is aware that there is still a great deal of ambiguity surrounding the CNG effort and is striving to dispel the myths and provide the necessary infrastructure.
Compared to the gasoline we are accustomed to, CNG is safer, cheaper, and cleaner, according to Coker. As a result, you will have more money and the environment will be cleaner.
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