PricewaterhouseCoopers Limited, the company that offers business advisory services such as auditing, strategy management, and human resource consulting services, has stated its stance on the capability of compressed natural gas (CNG) being an alternative to fuel in the short to medium term.
In a recent report on fuel subsidy, the company stated while some stakeholders have called for the adoption of CNG as an alternative to fuel for vehicles in Nigeria, the company has suggested a cautious approach to the implementation.
The introduction of CNG to more vehicles in Nigeria will increase the number of natural gas-powered vehicles in the country, and many Nigerians will no longer have to rely so heavily on fuel.
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However, the belief of PwC is that the conversion of vehicles for the use of CNG is better planned for the long term.
In April 2023, a letter was sent by the Independent Petroleum Marketers Association of Nigeria (IPMAN) to the Federal Ministry of Finance to present a palliative solution. In the letter, the association stated that it has partnered with Gas Analytics & Solutions Limited to collocate natural gas dispensers on its network of over 30,000 filling stations in Nigeria.
The letter also requested the Central Bank of Nigeria to be mandated to provide access to the N250 billion Gas Expansion Fund for vehicles, Keke, and truck owners to access loans to finance the acquisition of natural gas conversion kits.
IPMAN stated that this collaboration would present the economic and expedient platform to deploy the necessary infrastructure to support a fast national roll-out of CNG (Compressed Natural Gas) for vehicles.
Now, the report from PwC states that the adoption of CNG in Nigeria will also bring some challenges. While PwC also highlighted some of its benefits, like a reduction in reliance on fuel, there are still challenges the company found to its adoption.
Some of these challenges found include the initial investment required to retrofit existing vehicles with CNG, the need to establish a robust distribution infrastructure for CNG, and the need for government policies and incentives to promote the use of CNG.
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