Hurdles ahead of CNG vehicles’ roll-out — Investigation

By Theodore Opara, Motoring Editor

LAGOS — The Federal Government’s efforts at making the Compressed Natural Gas, CNG, vehicles popular in Nigeria, may not get the needed gravitas after all, Vanguard investigation has revealed.

What technicians are saying
This is because many of the local automobile technicians who are supposed to push the aggressive rollout of the project know little or nothing about this auto technology, though the government is ready to roll out the first set of buses, what with the 40 of such buses donated earlier this week to the government by Depots and Petroleum Products Marketers Association of Nigeria, DAPPMAN, and Nigerian National Petroleum Company, NNPC Limited. NNPCL Foundation.

Vanguard investigations revealed that the CNG acceptance could witness initial setbacks as most of the technicians claimed ignorance of the system.

An auto mechanic in the Oluti area of Lagos, identified simply as Ola, told our reporter he hadn’t even heard about the technology, let alone come across it.

Meanwhile, Ola is one of the most popular auto mechanics in the Old Ojo Road axis of the Amuwo-Odofin area of Lagos State.

He specialises in the maintenance of Japanese vehicles and solves for his colleagues, and intricate auto issues which they find confusing.

But when Vanguard sought his opinion on how Nigeria could leverage CNG technology, he said: “Which one is CNG? I am not aware of that kind of fuel?

“I don’t think I can touch any vehicle that is not powered by petrol for now, not even diesel engines,” he declared.

Another technician, who wouldn’t like his name mentioned, said that CNG-powered vehicles are still new to Nigerian mechanics and advised that the government should establish centres to massively train technicians if it wants it to succeed.

“As you can see, most mechanics do not know what CNG is all about. The Federal Government can partner with some established workshops across the country to train technicians to make it work.”

Mr Henry Ogbonna, a Mercedes Benz mechanic with more than two decades’ experience in Apapa, told Vanguard that before now they used to disconnect and remove CNG gas cylinders as instructed by vehicle owners because people didn’t know the usefulness and where to refill the gas.

“Some owners of Mercedes-Benz V and flat booths would ask us to disconnect it, and we have removed many of them in this workshop,” he said.

“Last December 2023, we removed one CNG cylinder from a customer’s car.”

“If the Federal Government is serious about it, we won’t have any option than to go and train on how to install it in customers’ cars,” he further added.

Authorities speak of encouragement
Also speaking recently during a tour of an auto plant in Lagos, the Director-General, National Automotive Design and Development Council, NADDC, Mr Joseph Osanipin, said: “From my assessment so far, the assemblers are ready for CNG vehicle initiative”. He urged Nigerians to embrace the initiative to save cost.

According to him, apart from saving cost, the CNG conversion will create many jobs for the youths.

Cost of installation and downsides
Meanwhile, Vanguard’s investigation revealed that it costs over N1 million to install a CNG gas cylinder in a car and that this may discourage many vehicle owners from converting them to CNG, considering the hardship in the country.

The other drawback of installing a CNG gas cylinder in a car is that it takes a reasonable chunk of the booth space.

“As an African, you know we like taking along a lot of our belongings when we travel, so if the CNG gas cylinder is fixed in the booth, where do you think we would put these loads when we travel,” a technician asked.

Also, experts have observed that CNG and diesel technologies are not compatible. This means that it won’t be advisable to convert a diesel-powered engine to CNG unless it is done from the onset in the auto assembly plant.

However, on the cost of conversion, President Bola Tinubu appeared to have provided an answer to this when in his nationwide broadcast, amid the protests against hunger and hardship in the country, said: We will be distributing a million kits of extremely low or no cost to commercial vehicles that transport people and goods and who currently consume 80% of imported PMS and AGO.

“We have started the distribution of conversion kits and setting up of conversion centres across the country, in conjunction with the private sector.

‘’We believe that this CNG initiative will reduce transportation costs by approximately 60 per cent and help to curb inflation.’’

Between subsidy removal and CNG rescue mission

The CNG and Liquefied Petroleum Gas, LPG, are found in abundance in the country and the Federal Government has seen the need to tap into this to cushion the effects of high transportation costs arising from fuel subsidy removal from the inception of President Bola Ahmed Tinubu’s administration in May 2023.

The president, during his inaugural address to the nation, announced the removal of fuel subsidies, citing corruption by a certain group of businessmen who enriched themselves with the subsidy payments to the detriment of the Nigerian masses.

To this end, President Tinubu launched the Presidential CNG initiative in October last year to deliver cheaper, safer, and environmentally friendly energy through a mass transit programme.

The Federal Government has provided N100 billion of the N500 billion palliative budget for the purchase of 5,500 CNG vehicles, including buses and tricycles, 100 electric buses and over 20,000 CNG conversion kits as well as encouraging the development of CNG refuelling stations and electric charging stations across the country.

Having set up a committee to oversee the success of the initiative, with the necessary tax and duty waivers approved by the President in December 2023, the Presidential Committee on Compressed Natural Gas Initiative is partnering with the private sector to actualise the project.

Private sector investment in CNG
Already, Mr. Bayo Onanuga, Special Adviser to the President on Information and Strategy, said “the private sector has responded with over $50 million in investment in refuelling stations, conversion centres and electric charging centres.”

The initiative has been lauded by stakeholders in the automotive industry as a way forward for cheaper source of fuel for automobiles in the country.

CNG’ll enhance local auto production – Edun
Speaking during the tour of Jet Motor Company in Lagos recently, Minister of Finance and Coordinating Minister of Economy, Mr. Wale Edun noted that the use of CNG will enhance local auto production.

He said: “The Presidential Initiative on Compressed Natural Gas of the current administration is on course, and the CNG vehicles would be rolled out for the benefit of Nigerians.

“The initiative is reducing transport costs. It is also helping to grow the economy. So we see, two critical aims are being achieved without wasting time.”

Automotive stakeholders swing into action
Reputable automotive stakeholders such as Briscoe Motors, DM Motors, Kia Motors, Lanre Shittu Motors, Mikano Motors, Creek Transitway, Jet Motor, Fixit 45, and a whole lot of others have taken the bull by the horns in investing in CNG technology.

According to the Group Managing Director of R.T. Briscoe Plc, Mr. Seyi Onajide, the automotive division of the conglomerate, decided to set up a CNG/LPG conversion facility in line with the Federal Government’s CNG initiative, Pi-CNG

“We started the conversion of petrol or diesel engine cars into CNG and LPG without government funding, and we believe it is the future of the automobile industry. We have successfully done that on some pick-up vehicles,” he said.

The RT Briscoe CEO said the company has submitted a proposal to the Presidential CNG Committee.

“They invited us to participate in the CNG initiative. We believe the average vehicle owner in Nigeria and even commuters can benefit from this initiative because it has a lot of benefits. It will save costs for the motoring public,” he noted.

Also, Managing Director and Chief Executive Officer of Lanre Shittu Motors, Mr. Taiwo Shittu said that the company will start rolling out CNG-powered buses this month to ease public transportation.

He commended the Federal Government’s efforts at encouraging the investment in CNG technology in alleviating the transportation needs of Nigerians.

Shittu said: “Following a Presidential directive that CNG buses must be a priority and preferred mode of transportation by various ministries, departments and agencies, the government has shown its determination to encourage the local auto assembly plants.”
He said the company will start deployment of large units of the LSM-branded CNG buses in airports across the country and for other mass transit needs.

Complementing the call for the CNG technology in Nigeria, the Managing Director, BKG Exhibitions Limited, Mr. Ifeanyinchukwu Agwu urged Nigerians to fully embrace it as a better alternative to petrol, saying it was not only a cleaner energy, but would also drastically reduce cost of living.

In an interview with Vanguard, he said, ‘’CNG is the best. From my personal experience, CNG is the way to go if we need to bring down inflation in Nigeria. Though the Federal Government has been trying to promote CNG, we all must support the government in this area. That is why I am using this opportunity to advise Nigerians to adopt CNG as the future of the automobile industry in Nigeria.

Explaining his personal experience, he said: ‘’When fuel subsidy was biting hard, I changed my generator to gas. Trust me, that engine hasn’t had any issues since then. It starts with just a single attempt. This is one petrol engine that I had to call a mechanic to repair after using it for a night. It keeps having issues, but now, with one pull, the generator starts.

“Nobody did anything to the engine. It shows CNG cleaned the engine. I have not called any mechanic for the past six months. In addition to that, the amount of money spent on fueling my generator has reduced.

“A 12kg gas is about N17,000 now. How many litres of petrol can N17,000 buy? That is about 20 litres. 20 litres will barely serve for one night, but with gas, it will take me at least one week.”

“CNG is the best. Imagine what will happen when you have CNG in your vehicle. It definitely will clean the engine. I have even chosen to convert my vehicle to CNG.

“CNG, apart from reducing vehicular exhaust gas emissions and protect the environment, it lasts longer and keeps your engine running perfectly. People are missing and losing a lot of money every day by not adopting CNG,” he added.

The Chairman/ CEO of DM Auto Company Nigeria Ltd, Prince Emmanuel Etuk, urged Nigerians to embrace the CNG-powered vehicles to save costs of running their automobiles.

According to the DM Auto Company boss: “The CNG initiative has a significant impact on the overall cost of transportation for Nigerians in several ways.

“Firstly, CNG is generally more affordable than traditional fuels such as petrol and diesel. This means that vehicles powered by compressed natural gas, CNG, offer cost savings for both individual consumers and businesses, as the fuel itself is less expensive.

“Additionally, the use of CNG-powered vehicles can lead to long-term cost savings for consumers due to the improved fuel efficiency of CNG engines.

“This means that drivers can travel greater distances on a smaller amount of fuel, ultimately reducing their overall fuel expenses.

“Moreover, the CNG initiative can contribute to a reduction in transportation costs by promoting the development of a more diverse and competitive fuel market.

By introducing an alternative fuel option, the CNG initiative creates opportunities for increased competition among fuel providers, potentially leading to lower fuel prices and improved affordability for consumers.

“Furthermore, the reduced environmental impact of CNG-powered vehicles can have indirect cost-saving benefits for Nigerians.

“By mitigating air pollution and its associated health impacts, the initiative can lead to potential savings in healthcare costs and productivity gains due to a healthier population.”

CNG is said to offer up to 60% savings over petrol.
However, despite these obvious benefits of CNG, it does not appear to be exciting to most motoriasts and vehicle owners, also because the government has not done enough enlightenment on the new technology.

https://www.vanguardngr.com/2024/08/hurdles-ahead-of-cng-vehicles-roll-out-investigation/