ABUJA, Nigeria (AP) — When Nigerian President Bola Tinubu ended expensive subsidies that made gasoline affordable for many in Africa’s most populous country, Ahmed Halilu knew his e-taxi company in the capital Abuja was on the verge of huge to suffer losses.
Transport costs skyrocketed as the price of gasoline more than tripled in the months following last year’s decision, resulting in the country’s worst cost-of-living crisis in a generation. That meant a huge drop in Halilu’s passenger numbers and ultimately its revenues.
In what they said would ultimately cut transport costs by almost 50%, Nigerian authorities in August introduced a compressed natural gas (CNG) initiative to tap into its vast gas reserves – Africa’s largest – and roll out CNG buses, as they switch to petrol vehicles It.
Trusted news and daily treats, straight to your inbox
See for yourself: The Yodel is the source for daily news, entertainment and feel-good stories.
More than 100,000 vehicles have been modified to run on CNG or with the hybrid option of CNG and petrol, and according to Director Michael Oluwagbemi, at least US$200 million has been invested by the government under the initiative.
The government aims to convert 1 million of Nigeria’s more than 11 million vehicles in the next three years, but analysts say the process is slow, reflecting poor implementation and limited infrastructure.
Although Nigeria is one of Africa’s largest oil producers, the country is dependent on imported refined petroleum products as its refineries are struggling, with production at its lowest level in decades amid massive oil theft.
Along with other reforms Tinubu introduced after coming to power in May last year, the elimination of subsidies was intended to save the government money and support declining foreign investment.
However, it has affected the price of almost everything, and rising transportation costs are forcing people to ditch their cars and walk to work.
Switching to gas is difficult. In addition to the lack of an adequate network of CNG conversion and fueling stations – available in 13 of Nigeria’s 36 states – the success of the government’s initiative was also limited by low public awareness.
That has left room for misinformation and hesitation among motorists.
“People are not excited about it because of a lack of orientation,” Halilu said. He converted his car and now saves $240 per month on gas costs in his e-hailing company.
Some drivers have expressed fears that their car could explode when converted to CNG; statements that regulators say are untrue unless the equipment is installed incorrectly. In southern Edo state, authorities discovered that an exploding CNG vehicle had been worked on by an unaccredited supplier.
Even in Abuja and the economic hub of Lagos, fuel stations are scarce and the few available conversion workshops are often packed with commercial vehicles waiting for days to switch to CNG at subsidized rates.
Meanwhile, the cost of transferring from private vehicles is 20 times the Nigerian minimum monthly wage of $42.
A colleague had to travel about 200 kilometers to Abuja to refill his cylinder, said Abdul Manasseh, an e-taxi driver in Abuja.
Another challenge that has held back the initiative is Nigeria’s limited gas pipeline, making supply stations difficult to reach. As a result, most parts of the northern and eastern states have not been reached.
The challenges are similar to those of the shift to electric vehicles in Nigeria, where adoption by private operators has been slow. Power supplies remain insecure for most of the country’s 210 million residents, mainly due to underinvestment and vandalism.
The government understands that there is still “a lot of uncertainty” surrounding the CNG initiative and is working to correct the misconceptions and provide the necessary infrastructure, said Tosin Coker, the initiative’s head of commercial affairs.
“CNG is a cleaner fuel, it is a cheaper fuel and it is a safer fuel compared to the gasoline we are used to,” Coker said. “So you keep more money in your pocket and it is cleaner for the environment.”
___
The Associated Press receives funding for global coverage of health care and development in Africa from the Gates Foundation. The AP is solely responsible for all content. Find AP’s Standards for Working with Charities, a list of supporters, and funded coverage areas at AP.org.
