Nigeria has the natural gas resources to reduce its exposure to the ongoing global energy crisis, but faster adoption of gas powered transport and investment in supporting infrastructure will be critical to translating that potential into lower energy costs, Alfa Designs Nigeria Limited has said.
The asset management company made the call in a statement issued to the News Agency of Nigeria (NAN) in Abuja on Friday, urging the country to accelerate the adoption of compressed natural gas (CNG) as an alternative to petrol for commercial transportation.
The group said Nigeria’s extensive natural gas reserves offered an opportunity to reduce the financial pressure caused by volatile global energy markets and rising operating costs. It argued that wider domestic gas use could also support industrial development, attract investment and create jobs.
Alfa Designs said it had partnered with an original equipment manufacturer to reduce the cost of acquiring and installing CNG conversion kits for commercial tricycles, commonly known as Keke NAPEP, from as much as ₦700,000 to below ₦450,000.
According to the company, the lower conversion cost could make the alternative fuel more accessible to commercial drivers, whose operating expenses have been affected by high petrol prices.
Using its stated prices of approximately ₦1,390 per litre for petrol and ₦98 for a CNG equivalent, the company estimated that a driver consuming the equivalent of 10 litres of fuel daily could reduce daily energy expenditure from ₦13,900 to ₦3,980.
It calculated potential savings of ₦9,920 daily, or more than 71 per cent. Over a 26-day working month, the savings would exceed ₦257,000, allowing a driver to recover the conversion cost in fewer than 46 working days, based on the company’s assumptions. These estimates depend on the stated fuel prices, consumption levels and conversion costs.
The group also projected substantial economy-wide savings if CNG adoption expanded nationally. It estimated that replacing a significant share of petrol consumption with cheaper gas could retain more money within the domestic economy and reduce operating costs for businesses.
However, such projections depend on the scale of adoption, the availability and price of CNG, conversion expenses and the investment required to establish refuelling infrastructure. The company’s estimates should therefore be treated as projections rather than confirmed national savings.
Nigeria has an estimated 215 trillion cubic feet of proven natural gas reserves, according to the Federal Government. Despite this resource base, limited infrastructure, financing constraints, regulatory uncertainty and inadequate access to markets have restricted the extent to which gas can be supplied reliably to industries, power plants, businesses and households.
The government has identified expanded infrastructure and domestic gas utilisation as priorities under its Decade of Gas initiative, which aims to increase the role of gas in the economy. Recent government statements have also emphasised the need for investment and more reliable market access to convert reserves into economic benefits.
Alfa Designs said wider CNG adoption could help reduce transport costs and improve the competitiveness of Nigerian businesses amid international energy market disruptions.
For the transition to deliver broad benefits, Nigeria will need affordable conversion options, dependable gas supplies, sufficient refuelling stations and safety standards that protect users. The availability of large reserves alone does not guarantee lower prices without the infrastructure and distribution systems required to deliver gas to consumers.
The group urged stakeholders to move beyond discussions of Nigeria’s resource potential and accelerate practical measures that would expand access to alternative fuels and reduce the impact of global energy shocks on households and businesses.
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