Nigeria, a country blessed with vast natural gas reserves, is facing a setback in its efforts to transition from petrol to Compressed Natural Gas (CNG) as an alternative fuel due to the shortage of conversion kits, BusinessDay?s findings have revealed.

For millions of Nigerians, the promise of CNG was a beacon of hope. With petrol prices soaring after the removal of fuel subsidies in 2023 and the cost of living skyrocketing, the switch to CNG was seen as a lifeline to a cheaper, cleaner, and more sustainable way to keep the country moving.

The federal government under president Bola Tinubu promised to convert public transportation vehicles, including buses and taxis, to run on CNG, while also encouraging private vehicle owners to make the switch. Conversion centres were set up across major cities, and subsidies were announced to make the kits affordable for the average Nigerian.

However, what was meant to be a transformative shift has hit a major roadblock: a severe shortage of conversion kits needed to retrofit vehicles to run on CNG.

But that hope is fading as many Nigerians appear frustrated and uncertain about the future of CNG.

BusinessDay?s survey of some conversion centres in Nigeria?s commercial capital showed the shortage of conversion kits has become a roadblock that is delaying a quiet revolution expected to reduce reliance on petrol-dependent cars.

?We have the technicians, we have the facilities, but we don?t have the conversion kits,? a conversion centre manager in Mushin told BusinessDay. ?It?s frustrating for us and our customers.?

Another senior executive said the majority of the conversion centres in Lagos are not functioning adequately because of a lack of kits.

?The conversion center in Ibafo, Ogun State, is functioning optimally but the paucity of kits is a major challenge to rising demands from motorists,? he said.

Industry experts point to a combination of factors behind the shortage. First, the global supply chain for CNG conversion kits has been strained by increased demand from other countries also transitioning to cleaner fuels. Second, Nigeria?s reliance on imports for these kits has left it vulnerable to delays and logistical challenges.

?When you consider the challenges of importing goods into Nigeria, customs delays, port congestion and foreign exchange issues, then you have a perfect storm,? said Adeola Ogunleye, an energy analyst based in Abuja.

A BusinessDay survey showed shortages of conversion skits have left conversion centres across Apapa, Mushin and Ikeja idle.

Emails sent to Nagendra Verma, the managing director of NIPCO Gas Ltd, a major player in the CNG sector, on scarcity of kits and ancillary issues got no response at the time of writing this report.

At another conversion centre in Ojota, Lagos, there was no visible conversion activity going on. Still, Michelle Ejiofor, chief operating officer (COO) of Portland Group, Renewable Energy & Power in charge of the Ojota centre, said there is no shortage of kits from his station.

?I don?t know anything about that. And everything is going as it is supposed to be,? Ejiofor told BusinessDay.

For ordinary Nigerians, the shortage is more than just an inconvenience?it?s a blow to their livelihoods.

Take, for example, Charles Ogbeide, a taxi driver in Nigeria?s commercial capital, who has been navigating the streets of Ikeja for over a decade.

Like many Nigerians, he saw CNG as a way to cut costs and increase his profits.

?I saved for months to get my car converted,? he said. ?But when I got to the conversion centre, they told me there were no kits. Now, I?m stuck paying for petrol, and my business is suffering.?

For Olufemi Abiola, a taxi driver in Lagos, who had hoped to switch his vehicle to CNG, the shift to CNG was a potential lifeline.

?I heard about the government programme, and I was excited to make the switch because it would save me a lot of money in fuel costs. But now, every time I inquire, I hear the demand for conversion kits has skyrocketed but the supply hasn?t kept up,? Abiola said.

Price gouging exacerbates crisis

The shortage has created a fertile ground for price gouging, with some suppliers charging exorbitant prices for the few kits available.

The cost of converting a four-plug to CNG was an average of N1.2 million just a few months ago but now sells for as much as N1.7 million, putting it out of reach for many Nigerians.

?It?s exploitation, plain and simple,? said Funke Alabi, a taxi driver in Lagos. ?I saved for months to afford the conversion, but now the price has increased again. How am I supposed to keep up??

Efforts to reach Folarin Oworu, programme coordinator of the Presidential Compressed Natural Gas Initiative (PCNGi), via calls proved abortive at the time of writing this report.

Last Thursday, the federal government announced plans to have no fewer than 150 CNG stations before the end of 2025.

?Our goal that the president has set for us is to ensure that we have a million vehicles running on compressed natural gas by 2027, and already we have made significant progress towards achieving this objective,? Michael Oluwagbemi, programme director and chief executive of PCNGi, said. (Business Day)

Update news