81 Firms Get Licence To Retail CNG In Nigeria — NADDC

The National Automotive Design and Development Council (NADDC) has disclosed that 81 firms have so far been licensed to retail Compressed Natural Gas (CNG) in Nigeria.

The Director-General and Chief Executive Officer of the council, Otunba Oluwemimo Joseph Osanipin, made this known while speaking with State House correspondents after a meeting with President Bola Tinubu at the Presidential Villa, Abuja.

Osanipin said the increase in the number of licensed CNG retailers was an indication of progress in the Federal Government’s efforts to expand the infrastructure required to support the country’s CNG policy.

He explained that the success of the policy depended largely on increased investment in filling stations, mobile refuelling units and gas production facilities across the country.

According to him, the government could not expect the policy to produce immediate results without first putting the necessary infrastructure in place.

“You can’t put a policy in place today, and you start having the immediate impact,” he said.

The NADDC boss noted that the number of licensed CNG retailers had risen significantly from about four previously to 81, making the gas more accessible to motorists in some parts of the country.

He said the development showed that investment was gradually expanding the availability of CNG, adding that more infrastructure would be required to ensure nationwide accessibility.

Osanipin also highlighted the potential cost savings for motorists who switch from petrol to CNG.

He recounted the experience of a motorist who travelled to Jigawa and Kano and was able to access CNG in Kano, substantially reducing his fuel expenses.

He said the motorist’s expenditure was reduced from more than N200,000 to about N40,000 after switching to CNG for part of the journey.

The NADDC chief said fleet operators were already benefiting from the lower operating costs associated with CNG, but urged businesses to ensure that the savings were passed on to consumers through lower prices.

“I have seen a lot of people that are benefiting from it, but they refuse to transfer the price to the masses. So that is going to be the next stage,” he said.

Osanipin, however, stressed that the government needed to expand CNG infrastructure sufficiently before intensifying enforcement measures aimed at accelerating adoption.

He said the expansion of CNG infrastructure formed part of the broader government strategy to improve transportation, reduce operating costs and promote cleaner energy alternatives.

On electric mobility, the NADDC director-general disclosed that charging and related infrastructure had been provided in about 16 universities as part of efforts to encourage the development and adoption of electric vehicles.

He also confirmed that the first batch of electric vehicles promised by President Tinubu to federal civil servants had been delivered.

According to him, the delivery marked the beginning of a wider rollout of electric vehicles as the government continues its efforts to transform Nigeria’s automotive sector.

Osanipin said the various initiatives were aimed at strengthening the automotive industry while supporting the transition to cleaner, more affordable and sustainable transportation in Nigeria.