TEMPLARS: The Energy Question—Is CNG the Answer?

In this episode, Managing Counsel, Inna Ali and Ifure Udofa, analyse Compressed Natural Gas (CNG) and its role in Nigeria’s energy transition, regulation, and investment landscape.

They share practical insights about the regulatory framework, national gas policy, and energy transition initiatives that promote CNG adoption in line with Nigeria’s 2060 net-zero emissions goal.

See below the key points from the discussion:

[00:18 – 02:00] What is CNG?: CNG is a clean, cost-effective alternative to petrol and diesel—one-fifth the cost, with lower emissions and economic benefits.

[02:00 – 03:21] Regulatory Framework: NUPRC oversees the upstream development of gas reserves, while NMDPRA regulates CNG distribution. A comprehensive framework for CNG is in development.

[03:21 – 05:24] Presidential CNG Initiative (PCNGI): Launched in August 2023, PCNGI promotes CNG-powered mass transit, encourages private sector investment, and facilitates skills development. Lagos, Ogun, and the Federal Capital Territory (FCT) Abuja have already adopted CNG transit systems.

[06:13 – 08:00] National Gas Policy & Energy Transition: The 2017 National Gas Policy supports CNG adoption and aligns with Nigeria’s 2060 net-zero goal through gas commercialisation and flared gas conversion.

[10:37 – 12:08] Global Lessons: Countries like Egypt and India have successfully expanded CNG through localised production, workforce development, and infrastructure investment. Nigeria can leverage the models which have proved successful in those jurisdictions.

[12:50 – 16:16] Investment & Incentives: CNG offers huge investment potential across processing, distribution, and retrofitting. The government has introduced pioneer status incentives, Value Added Tax (VAT) exemptions, and capital allowances to attract investments into CNG infrastructure and operations.

[16:16 – 16:30] Key Takeaways: CNG reduces costs, lowers emissions, and enhances energy security. The regulatory framework is evolving, and government incentives are in place to attract private sector investment.