The Federal Government’s drive to expand Compressed Natural Gas (CNG) adoption in Nigeria continues to face funding, infrastructure and public awareness challenges, with petroleum retailers identifying funding as major constraint.
Speaking on behalf of the Association, PETROAN National President, Dr Billy Gillis-Harry in an interview on the progress and implementation gaps of the Federal Government’s CNG initiative, said existing petroleum retail outlets could play a significant role in improving access to the alternative fuel.
According to him, many of the outlets already have the required forecourt space and operational capacity to accommodate CNG facilities, while some could also serve as vehicle conversion centres.
“The only thing that will be required is additional funding to give them a shot in the arm for the process to go forward,” he said.
Gillis-Harry said private operators were willing to invest in the initiative but needed an enabling business environment and initial financial support to expand their participation.
He noted that some petroleum retail operators had built businesses from relatively small investments into large-scale operations, adding that the private sector was capable of committing more resources once the right conditions were established.
The PETROAN President revealed that the association had been holding discussions with government agencies and other downstream industry stakeholders to assess the CNG ecosystem, identify gaps and determine areas where private operators could contribute.
He said about four to five critical meetings had taken place within the last month, including discussions on the infrastructure required to improve CNG adoption and the role of the private sector in addressing existing challenges.
On the slow pace of implementation, Gillis-Harry said he would not describe the initial challenges as government unpreparedness, arguing that the industry was still developing the structures needed to support wider adoption.
He, however, identified inadequate infrastructure and the need for greater public awareness as important areas requiring attention.
According to him, queues at some CNG refuelling stations, sometimes lasting one or two days, indicate growing adoption but also highlight the need to expand the available infrastructure.
He said increasing the number of accessible refuelling facilities would be necessary to accommodate demand and encourage more motorists to switch to CNG.
Gillis-Harry also stressed the need to communicate the long-term economic benefits of CNG adoption, noting that some Nigerians still perceive the transition as an expensive investment.
He said PETROAN would work to educate its members, prepare retail outlets and identify facilities that could accommodate CNG dispensing and vehicle conversion services.
The association also wants the government to support the development of the wider distribution network, including mother and daughter stations and virtual pipeline infrastructure, while ensuring that safety standards remain a priority.
Gillis-Harry described the removal of petrol subsidy by President Bola Tinubu as the policy development that created the opportunity for Nigeria to accelerate the adoption of alternative fuels.
He expressed confidence that stronger collaboration between government and downstream industry associations would improve the implementation process, adding that PETROAN was ready to provide technical advice and industry support.
He said the association intended to move beyond policy discussions to practical participation in expanding CNG infrastructure and making the alternative fuel more accessible to Nigerians.
