The National Automotive Design and Development Council (NADDC) has assured Nigerians of the Federal Government’s commitment to addressing the infrastructure gap
By Lucy Ogalue
The National Automotive Design and Development Council (NADDC) has assured Nigerians of the Federal Government’s commitment to addressing the infrastructure gap hindering the widespread adoption of Compressed Natural Gas (CNG).
The Director-General of the NADDC, Mr Joseph Osanipin, said this at its 2024 end of year media briefing on Friday in Abuja.
Osanipin said that the current infrastructure could not fully support the demand for CNG, adding that significant investment was being made to bridge the gap.
“The infrastructure we have currently cannot fully support the demand for CNG. However, the Federal Government is working seriously on that.
“On Sept. 30, the government released N122 billion to assist investors and stakeholders across Nigeria’s geopolitical zones to provide the necessary infrastructure for CNG,” he said.
According to Osanipin, building infrastructure, like constructing the foundation of a house, often goes unnoticed until tangible results are visible.
“A lot of investments are going into the provision of infrastructure to support gas. Once these projects are completed, we will begin to see the results in the near future.
“Companies like NIPCO, which have been in the gas business for years, have a head start, but many other stations are also building CNG facilities,” he said.
The NADDC boss cited examples of the cost-effectiveness of CNG, highlighting its potential to significantly reduce operational expenses for businesses.
“For instance, a trip that costs N550,000 with diesel can be done for N90,000 with CNG. This gives users a savings margin of N460,000 per trip.
“ Such savings can translate into lower product costs, which benefit both businesses and consumers,” he explained.
Osanipin said that more companies were beginning to embrace CNG as a viable alternative.
He said that some companies that initially ignored the potential of CNG were now actively investing in it to stay competitive.
“Partnerships are being formed, and infrastructure projects are underway to ensure the availability of gas,” he said.
He assured Nigerians that the government’s efforts to develop the necessary infrastructure would soon reduce gas shortages and enhance CNG accessibility across the country.
“The infrastructure will come, and when it does, the challenges with gas supply will be significantly reduced,” he said. (NAN)
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