There are indications that the Federal Government’s (FG) scheme, designed to transition Nigeria’s vehicle transportation service industry away from fossil fuel (petrol) to gas, has encountered a major hitch.
Industry stakeholders told Financial Vanguard that the initial enthusiasm has been overtaken by frustration due to supply shortages and insufficient infrastructure.
They said that inadequate refill facilities and the gas itself across the country have become the users’ and investors’ nightmare in recent times.
The scarcity of the product is coming against the backdrop of adequate supply of petrol across all parts of Nigeria, a situation which has now started luring the gas users back to re-converting their vehicles to petrol from gas.
In several states, there is virtually zero presence of the CNG scheme and in others with physical presence including availability of conversion kits, in-built autogas vehicles already supplied and refill stations already set up, but level of activities are either non-existence or skeletal.
However, the office of the Presidential CNG Initiative, as well as key stakeholders, while acknowledging the existence of these challenges, said the programme has not derailed, adding that efforts are underway to restore progress.
FG’s incentives
The Federal Government had put in place several incentives to encourage private business organisations to go into the CNG business, including the removal of Value Added Tax (VAT) on CNG equipment and infrastructure and Liquified Petroleum Gas, including conversion kits.
But investigations have revealed that the reluctance of the government to approve some licences for the establishment of CNG stations is part of the causes of scarcity at the few existing refill stations in Abuja and some other locations across the country.
Some of the users who spoke to Financial Vanguard also alleged sabotage.
A truck driver stated: “I believe there are some people in the downstream segment as operators and possibly regulatory agencies that are benefitting from petrol importation and they know that if more people convert to CNG and they can buy it easily, they will abandon petrol. If they abandon petrol, then they cannot be making that money again.
“President Tinubu is the one that said people should convert to CNG. So after we have converted to CNG, why can’t we buy it easily? If the stations are not enough, why will the people in government refuse to allow more stations to be established”?
Another commercial taxi operator said: “Many commercial vehicles have converted to CNG. Even many private car owners also converted to CNG but now, they are getting discouraged because of the long queues at gas stations.
“As a result of the long queues, many of them cannot spend four, five or six hours to buy CNG. They don’t have such time. So they are now reverting to petrol. That is not the way to go.”
A truck driver of one of the largest cement companies in the country told Financial Vanguard in Abuja weekend, that he and his colleagues spend an average of six days to refill their CNG-powered trucks at refill stations.
But investigations have revealed that the reluctance of the government to approve some licences for the establishment of CNG stations is part of the causes of scarcity at the few existing refill stations in Abuja and some other locations across the country.
Some of the users who spoke to Financial Vanguard also alleged sabotage.
A truck driver stated: “I believe there are some people in the downstream segment as operators and possibly regulatory agencies that are benefitting from petrol importation and they know that if more people convert to CNG and they can buy it easily, they will abandon petrol. If they abandon petrol, then they cannot be making that money again.
“President Tinubu is the one that said people should convert to CNG. So after we have converted to CNG, why can’t we buy it easily? If the stations are not enough, why will the people in government refuse to allow more stations to be established”?
Another commercial taxi operator said: “Many commercial vehicles have converted to CNG. Even many private car owners also converted to CNG but now, they are getting discouraged because of the long queues at gas stations.
“As a result of the long queues, many of them cannot spend four, five or six hours to buy CNG. They don’t have such time. So they are now reverting to petrol. That is not the way to go.”
A truck driver of one of the largest cement companies in the country told Financial Vanguard in Abuja weekend, that he and his colleagues spend an average of six days to refill their CNG-powered trucks at refill stations.
Another commercial taxi operator said: “Many commercial vehicles have converted to CNG. Even many private car owners also converted to CNG but now, they are getting discouraged because of the long queues at gas stations.
“As a result of the long queues, many of them cannot spend four, five or six hours to buy CNG. They don’t have such time. So they are now reverting to petrol. That is not the way to go.”
A truck driver of one of the largest cement companies in the country told Financial Vanguard in Abuja weekend, that he and his colleagues spend an average of six days to refill their CNG-powered trucks at refill stations.
He stated: “Every time you pass this road, you will see our trucks in the queue. It is not heavy-duty trucks only. Even car owners and taxi operators suffer with us. You can see things for yourself. Look at the long queues (point at both trucks and cars in their different queues).”
“I am not happy at all. When we are coming, our company gives us N20, 000 each. Imagine being given N20, 000 and then you spend six days in the queue just to buy gas. That money is not enough at all. We are suffering.”
Abuja/Nasarawa situation
The ever-busy Abuja-Keffi Road, with an approximately 38-kilometre distance, has over 49 petrol stations situated on both sides of the road. Unfortunately, on the same road, there is only one CNG station.
The only CNG refill station, situated at Ado, Karu Local Government Area of Nasarawa State, is currently non-functional. It was launched just some eight months ago to provide substantial savings for drivers and commuters, since CNG is significantly cheaper than petrol.
Lagos
When Vanguard visited some stations in Lagos state, including Ikeja, Mushin and Apapa, CNG product was not dispensed as the attendant said they were out of stock asking us to try other stations or come back some days later.
Sources close to NIPCO refill stations, however, argued that efforts were already being made to mitigate the crisis.
“Yes, I can confirm the challenges in the availability of the product, which sometimes happens in every product supply or delivery. There are so many reasons for such, it could be a delay at the port of clearing or shipment of this product”.
Vanguard also gathered that the product kits at various locations in Lagos are experiencing scarcity. A source in one of the government approved outlets, confirmed lack of equipment to install and convert to CNG operating vehicles.
According to him, “For while now, we don’t have the kits from the government source. However, we have some to sell from our own stock which is not like the subsidized equipment from the government. I don’t know why it is not coming in at the moment but that is the reality of things across our outlets.”
The National Union of Road Transport Workers (NURTW) in Bayelsa State said it has neither seen nor received the federal government’s CNG buses in the state.
A top official of the NURTW, Ekeki Park, Yenagoa branch, who pleaded anonymity, asked, “What is a CNG bus? From whom and from where? We have not seen anything or received any from the federal government.”
Vanguard
