Need to expand CNG conversion to aid agrarian states, reduce food costs.
Dr Yusuf J Aliu
The Federal Government’s (FG) initiative to distribute free Compressed Natural Gas (CNG) conversion kits to one million commercial vehicles across the country marks a significant stride toward energy sustainability and economic relief.
This CNG initiative offers a promising solution as Nigeria grapples with rising food costs, primarily driven by high transportation expenses.
However, for the desired impact, this program must be expanded beyond the current implementation states to include agrarian states, where the bulk of Nigeria’s agricultural produce is generated.
This expansion will address the rising cost of food, catalyse economic growth, and provide relief for millions of Nigerians.
Recent data from the National Bureau of Statistics (NBS) highlights a steep rise in the cost of food items nationwide. One of the primary culprits behind this surge is the escalating cost of transportation, which has worsened due to higher fuel prices and insecurity, among others.
Moving agricultural produce from rural farming communities to urban centres has become prohibitive, resulting in exorbitant food prices for the average Nigerian. By expanding the CNG conversion programme nationwide, particularly to agrarian regions, the FG can significantly reduce these transportation costs and ease the burden on consumers.
The Presidential Initiative on CNG is championing the ongoing CNG conversion programme, which is currently focused on eight states—Lagos, Ogun, Oyo, Edo, Delta, Kogi, Nasarawa, and Kaduna—and the Federal Capital Territory (FCT).
The initiative aims to boost awareness and acceptance of using gas to power vehicles, offering a cleaner, cheaper alternative to petrol and diesel.
This switch promises substantial savings for commercial drivers, particularly those in the transportation of goods. However, the absence of critical agrarian states in this rollout limits the program’s potential to address one of the most pressing issues: food security.
Nigeria’s food basket is primarily supported by states such as Benue, Niger, Taraba, Kebbi, and Plateau, all of which are heavily agrarian but currently not yet in the CNG programme. These states are responsible for most of the grains, tubers, and vegetables consumed nationwide.
Without extending the CNG conversion initiative to these regions, the high cost of transporting agricultural produce will persist, undermining the goal of reducing food prices nationwide. To fully harness the benefits of this initiative, the FG must prioritise these states in its next implementation phase.
Additionally, converting vehicles to CNG is free for all registered commercial vehicles, which should incentivize more drivers to switch to this more affordable fuel source. This move is particularly critical in the transportation sector, where rising fuel costs have increased fares and food prices. Expanding this conversion programme to the agricultural heartlands would encourage more haulage vehicles—especially those transporting fresh produce—to adopt CNG. This, in turn, would lead to lower transportation costs, fewer post-harvest losses due to quicker delivery times, and, ultimately, reduced food prices.
Moreover, the N750bn allocated for this CNG conversion process is an investment that promises long-term returns. By promoting the use of CNG across more states, the FG can simultaneously reduce the country’s reliance on costly petrol imports, support environmental sustainability, and create jobs in the automotive and energy sectors.
Agrarian states, in particular, would benefit from these economic advantages, as cheaper transportation would improve the profitability of farming, encourage local production, and stimulate the rural economy.
While the initial focus on urban states like Lagos and Ogun may be driven by the high concentration of commercial vehicles in these areas, the FG must recognise the strategic importance of rural, farming-dominated regions.
Extending the CNG conversion programme to include vital agricultural zones would address transportation challenges and align with the government’s goal of achieving food security.
As Nigeria seeks to diversify its economy away from oil, it is crucial to invest in the agriculture sector and improve the efficiency of its supply chain.
Furthermore, the ongoing CNG awareness campaign should be tailored to meet the needs of rural communities in these agrarian states. Many farmers and transporters in these regions may need to be made aware of the benefits of CNG or the opportunities provided by the government’s free conversion programme.
Therefore, the Presidential Initiative on CNG should work closely with local governments, cooperatives, and transportation unions in these areas to raise awareness and facilitate the adoption of CNG technology.
A nationwide rollout of the CNG conversion initiative would also have positive environmental implications. CNG is a cleaner fuel, producing fewer carbon emissions than petrol or diesel.
This switch would contribute to Nigeria’s climate action goals by reducing the transportation sector’s carbon footprint, particularly in regions that rely heavily on commercial vehicles to move goods.
In agrarian states, where transportation is critical to the food supply chain, the environmental benefits of CNG would complement the economic advantages, fostering a more sustainable agricultural economy.
Moreover, the current energy transition plan, which promotes using gas as a bridge fuel, aligns with global trends toward cleaner energy.
As Nigeria seeks to reduce its greenhouse gas emissions through international climate agreements, the CNG conversion program represents a practical step towards achieving these goals. By incorporating more agrarian states into this initiative, the FG can ensure that the benefits of this transition are felt across the country, particularly in sectors critical to national development.
In conclusion, the Federal Government’s CNG conversion programme is a commendable initiative with the potential to alleviate some of the economic pressures caused by rising transportation costs.
However, for it to fully deliver on its promise of reducing food prices and promoting energy sustainability, it must be expanded to include critical agrarian states. By doing so, the government can ensure that the transportation of agricultural produce becomes more affordable, benefiting farmers, transporters, and consumers alike while contributing to Nigeria’s broader economic and environmental goals.
Yusuf J Aliu, PhD, CMGR FCMI France, writes via: [email protected]