The Clear Picture of the CNG Adoption as Seen in the Energy Transition Strategy

The flaws in Nigeria’s energy transition strategy have been critically analyzed with key dates, impacts, benefits, issues, and possibilities.

As part of the Energy Transition Plan (ETP) at COP26 in November 2021, targeting net-zero emissions by 2060, Nigeria has been seeing a major policy shift. The most recent, including a proposed 5% tax on petrol and diesel by 2025, aims to reduce fossil fuel consumption but faces criticism.

The taxation rolls out in January 2026 with the sustainable development and creation jobs as the target.

The impacts and benefits of the energy transition strategy, especially the CNG adoption, cannot be overlooked. The ETP projects the need for USD 500 billion capital investment by 2060, expecting fuel savings worth USD 686 billion.

It emphasizes transitioning to renewables like solar, battery storage, hydrogen, and cleaner cooking technologies.

The transition plan aims to phase out 72% of diesel generators by 2030 and increase gas-powered generation capacity. More so, to reduce Nigeria’s heavy reliance on fossil fuels and tackle greenhouse gas emissions from the power, transport, and industrial sectors.

However, issues and flaws are presenting real challenges to the transition. Critics argue that the tax on fossil fuels alone may not significantly reduce consumption due to the lack of affordable and widely available renewable alternatives.

Compressed Natural Gas (CNG), a cleaner alternative envisaged for transport and cooking, has seen a significant price increase. What was originally planned as a cheap alternative to petrol is currently chasing the petrol price range, making CNG less accessible

Nigeria’s renewable energy capacity remains underwhelming, with solar and hydropower underutilized due to economic and infrastructural challenges.

Policy inconsistency and a lack of legislative frameworks specifically targeting renewable energy slow down the transition. Inflation and economic hardships raise concerns about the social and economic impact of aggressive transition policies.

Carbon emissions have shown upward trends since the ETP’s launch, indicating slow progress in emissions reductions.

ETP represents a comprehensive vision for moving away from fossil fuels, real-world challenges such as the affordability of alternatives like CNG. However, policy gaps, and economic pressures mean the tax’s impact on reducing fossil fuel consumption may be limited without broader systemic and infrastructural support.