Nigeria Embraces Natural Gas Transition as Diesel Dominance Wanes
Businesses save millions through CNG and LNG conversions while infrastructure gaps remain challenge
Nigeria’s diesel-dependent economy is experiencing a fundamental shift toward natural gas as the cleaner, more cost-effective alternative transforms power generation and transportation sectors. With over 200 trillion cubic feet of natural gas reserves, Nigeria holds one of Africa’s largest deposits, yet millions still rely on expensive diesel generators for power.
Energy experts report dramatic cost savings for early adopters of gas technology. A 500kVA generator converted to dual-fuel systems can save millions of naira annually, with some industries running LNG systems cutting fuel bills by 60 to 80 percent. The conversion costs are typically recovered within months, making the economic case compelling for businesses facing rising diesel prices. Case studies demonstrate the technology’s effectiveness. An 80kVA generator running on Compressed Natural Gas (CNG) successfully kept an industrial ice block factory operational despite prohibitive diesel costs. The conversion, executed by BEAQ Energies and WetClay Energy Technology, prevented a potential shutdown and demonstrated the practical benefits of gas adoption.
However, infrastructure limitations continue to hamper widespread adoption. Nigeria currently operates fewer than 15 CNG stations compared to over 30,000 petrol and diesel outlets. Pipeline networks, mini-LNG hubs, and regasification plants remain inadequate, particularly in northern and eastern regions where diesel dependence is most acute.
The government-backed Ajaokuta-Kaduna-Kano (AKK) pipeline project, spanning 614 kilometers, represents a flagship initiative expected to improve access. Industry advocates emphasize the need for conversion incentives, green bonds for infrastructure development, and robust public awareness campaigns under the Presidential CNG Initiative.
The transition faces resistance from established diesel interests, but proponents argue that policy clarity and financing support are critical for gas to become Nigeria’s primary transition fuel. The vision includes industrial parks running on locally liquefied gas, transport fleets cutting costs substantially, and rural communities generating off-grid power.
Source: vanguardngr.com
