Nigeria Licenses 81 Companies for Compressed Natural Gas

Nigeria has licensed 81 companies to retail compressed natural gas (CNG), a significant increase from approximately four previously licensed retailers. This announcement was made by Oluwemimo Joseph Osanipin, the Director-General of the National Automotive Design and Development Council (NADDC), on Wednesday, August 27, during a meeting at the Presidential Villa in Abuja.

CNG is currently priced at N380 per standard cubic metre (SCM) for cars and passenger buses, and N450 per SCM for heavy-duty vehicles and lorries. Osanipin noted that the increase in licensed retailers signifies progress in developing the necessary infrastructure to support the government's CNG policy, although he cautioned that widespread impact would take time.

He emphasized the government's promotion of CNG as a more affordable alternative to petrol, aimed at alleviating the effects of fuel subsidy reforms on transport costs. Motorists in areas with CNG availability are reportedly experiencing significant savings, with one example showing a reduction in fuel costs from over N200,000 to about N40,000.

Osanipin also mentioned that fleet operators are benefiting from lower running costs, but expressed concern that these savings are not being passed on to passengers and customers.