Challenges to CNG and EV Adoption Discussed at WAAS 2026

At the 2026 West Africa Automotive Show held in Lagos, stakeholders, including Chinedu Oguegbu, Chief Executive Officer of OMAA, discussed the challenges facing the adoption of Compressed Natural Gas (CNG) and Electric Vehicles (EVs) in Nigeria. Oguegbu noted that Nigeria possesses significant natural gas resources, with 206 trillion cubic feet (TCF) of proven gas reserves, making it the largest gas holder in Africa and the ninth largest globally.

Despite the existence of several gas transit programs and the current administration's push for infrastructure investment, only 75 CNG stations are operational, which is insufficient to meet rising demand. Olayinka Rufai, Strategic Project Advisor at PCNGI, identified financing as a major obstacle, particularly for logistics companies seeking to convert their fleets.

High-interest rates, ranging from 20% to 30%, hinder access to financing for vehicle conversion projects. Nobuhl Renq, Chairman of AAAM, emphasized the need for tailored policies to encourage the adoption of cleaner vehicle technologies, while Dr.

Femi Eguaikhid from LCCI pointed out that high vehicle financing costs limit access to new vehicles in Nigeria.