1. The CNG debate kicks in
Citizens on many platforms have commenced debates on compressed natural gas (CNG), which President Bola Tinubu and the federal government are pushing as a preferred alternative to petrol. President Tinubu has stated that CNG costs three times less than petrol.
The explosion of a CNG-powered vehicle in Benin City elevated the issue. Is it safe? How reliable will it be? Here is one take that spread across WhatsApp during the last fortnight.
Meanwhile, conversion to CNG costs N900000 for a saloon at approved centres in Lagos.
THE RUSH TO CNG CONVERSION
Before converting your vehicle to CNG, let’s ask some salient questions using the United States (US) as a prime case study.
1. If CNG is so loaded with advantages over fuel, why are there only about 175,000 CNG-powered cars in the USA, with a total estimate of about 284 million? That’s 0.061% And there are just about 2000 CNG filling stations compared to about 196,643 petrol stations in the US.
2. Why are there only 23 million CNG-powered cars out of the estimated 1.4 billion vehicles in the world? That’s 1.7% Reality check informed us not to run blindly with optimism.
There is a world of difference between a factory-structured CNG system and the ad-hoc conversion {àgbélèro) we are trying to do in Nigeria #could be fact-checked#
So, we fact-checked for readers.
The CNG and LPG Vehicles market size has multiplied in recent years. It will increase from $3.87 billion in 2023 to $4.19 billion in 2024 at a compound annual growth rate (CAGR) of 8.4%. The growth observed in the historical period can be attributed to several factors, including increased early adoption by public transit systems, government subsidies and incentives, rising environmental awareness, industry collaborations and partnerships, and research and development.
Major trends expected in the forecast period encompass the growth of biogas and bio-LPG adoption, integration with advanced vehicle technologies, the expansion of mobility-as-a-service (MaaS) solutions, the emergence of next-generation infrastructure, and a shift towards circular economy models.
Compressed natural gas (CNG) and liquefied petroleum gas (LPG) are preferred alternative fuels due to their cleaner emissions than traditional gasoline and diesel options, offering a more environmentally friendly transportation solution. For example, according to the International Energy Agency, electric car sales nearly tripled in 2021 to 3.3 million, comprising about half of the worldwide total, with sales of electric cars, including fully electric and plug-in hybrids, doubling to reach a record 6.6 million compared to the previous year. Consequently, the surge in clean-energy vehicle adoption is fuelling the growth of the CNG and LPG vehicle market.
Major companies in the CNG and LPG vehicle market are pioneering innovative twin-cylinder CNG technology to enhance fuel efficiency and minimise emissions. Twin-cylinder CNG technology involves outfitting a vehicle with two separate compressed natural gas (CNG) cylinders to store fuel. For instance, in May 2023, Tata Motors Limited, an India-based automotive company, unveiled the Altroz iCNG, incorporating twin-cylinder CNG technology. This cutting-edge solution addresses the common concern of limited boot space in CNG cars, providing owners with practical and usable storage capacity. The Altroz iCNG boasts leatherette seats, iRA-connected car technology, cruise control, and automatic headlamps.
In May 2023, Wal-Mart Stores Inc. partnered with Cummins Inc. to deploy five new tractors powered by a Cummins-built CNG engine. These tractors offer performance and range comparable to diesel engines while running quieter, offering lower maintenance costs and promoting sustainable transportation in the trucking industry. Walmart’s initiative to introduce CNG trucks into its fleet aligns with its goal to achieve zero emissions across its global operations by 2040. Cummins Inc. is known for manufacturing diesel and alternative fuel engines and generators.
Major companies operating in the CNG and LPG vehicle market are Volkswagen AG, Ford Motor Company, General Motors, Tata Group, Honda Motor Co. Ltd., The Hyundai Motor Group, Nissan Motor Co. Ltd., Groupe Renault, AB Volvo, Suzuki Motor Corporation, Cummins Inc., IVECO S.p.A., KION GROUP AG, Scania AB, MAN Truck & Bus AG, Navistar Inc., Chart Industries Inc., Clean Energy Fuels Corp., Westport Fuel Systems Inc., Landi Renzo S.p.a., Hexagon Agility Inc., AC S.A., CNG Fuels Ltd., Fiat Chrysler Automobiles, Clean Fuels Ohio.
Read also: Presidency calms fears over CNG amid Malaysia 2025 ban
Number of CNG vehicles
As of 2023, the United States has approximately 175,000 CNG-powered vehicles.
As of 2019, there were approximately 28 million CNG-powered vehicles worldwide. Although this number is likely to have increased since then, it’s still significantly lower than the total number of cars worldwide.
The adoption of CNG vehicles varies widely across countries, with some, like India and Pakistan, having a higher penetration rate than others.
Key Factors Influencing CNG Vehicle Adoption:
Government Policies: Governments in various countries, particularly Asia and Europe, have been promoting using CNG vehicles to reduce emissions and improve air quality.
Fuel Costs: The relative cost of CNG compared to traditional fuels can influence adoption rates.
Infrastructure: The availability of CNG fuelling stations is critical in the widespread adoption of CNG vehicles.
Regions with High CNG Vehicle Penetration:
India: India has many CNG-powered vehicles, especially in urban areas.
Pakistan: Pakistan has also seen a surge in the adoption of CNG vehicles.
China: While not as prominent as India and Pakistan, China has a growing number of CNG vehicles.
Various Sources, including Bard.ai. and Perplexity.ai
2. Bianca Odumegwu-Ojukwu as Minister of State insults Ndigbo
President Bola Tinubu swore in his new ministers on Monday, November 4. Mrs Bianca Odumegwu-Ojukwu became the Minister of State for External Affairs.
South-East politicos affirm that President Tinubu insulted the region with her appointment while ensuring that the zone got even fewer posts than before.
Uche Mefor from Anambra State articulated the position, among others.
Read also: Another feather in Bianca Odumegwu-Ojukwu’s multi-feathered cap
“This appointment raises critical questions about the respect—or lack thereof—afforded to Ndigbo within Nigeria’s political arrangement. According to the 1999 Nigerian Constitution, the “Minister of State” position is not an established role. This dubious role lacks the authority and significance vested in full ministerial positions. It serves only as a subordinate post, which makes this appointment a deliberate act of marginalisation and a gross misrepresentation of Ndigbo’s rightful place in the nation.
Notably, the Nigerian Constitution does not recognise or create any position for “Ministers of State,” which suggests that these posts are essentially powerless, ancillary roles established without a constitutional basis or legislative oversight. In practice, this means that the Minister of State operates under the direct control of a substantive minister, in this case, within the Ministry of Foreign Affairs. By appointing Mrs. Ojukwu to this auxiliary position, President Tinubu’s administration undermined the authority and influence of a Southeast representative and disregarded the intent of the Constitution itself. This act diminishes Ndigbo’s representation to a mere symbolic role, devoid of substantive power or influence, in a ministry as crucial as foreign affairs, where strategic decision-making is essential to shaping Nigeria’s global relationships and advocating for citizens’ rights abroad.
The implications of such an appointment reach far beyond Mrs Ojukwu’s case; they highlight a pattern of marginalisation and disregard for the South-East region’s rightful political influence.
The South-East has consistently advocated for equal representation in line with the federal character and national unity principles. As one of Nigeria’s largest ethnic groups, Ndigbo deserves a seat at the table equal in power and responsibility to those held by other regions. An auxiliary or subordinate role is not required, but substantive positions in government where appointees have full authority over their domains are needed.
3. Response to Dangote on fuel pricing
The pump price of petrol continues to generate intense debates and fiery contributions. Here is one from a platform of media people working across the world. The contributor wrote from Canada.
Economists would describe Dangote’s arguments, so far, as Sunk Cost Fallacy.
This refers to a situation whereby a person is reluctant to abandon a strategy or course of action because he has invested heavily in it, even when it is clear that abandonment would be fair and more beneficial to most people.
Read also: Marketers, Dangote fight in court over control of petrol market
There is a straightforward solution to the current PMS pricing quagmire. Typically, four costs (elements) determine the PMS pump price: crude oil, taxes, refiner margin, and transportation.
Dangote is only responsible for the refiner margin. Let him clearly and transparently state that.
In the best-case scenario, the government would ask Dangote and other refiners in Nigeria to bid for refining domestic crude allocation in a competitive exercise. With this strategy, the government retains three levers for managing the product’s price, which has proven to be the economy’s live wire: tax, crude price, and transportation.
With runaway inflation such as we have now, the government can cut taxes, move PMS by rail/trucks, award refining contracts to refiners close to target markets (in zones) or sell domestic crude at a price lower than the international price. These will have a spectacular effect on inflation and the debilitating economic situation the country is facing.
Dangote and other refiners can buy at international prices from NNPC for refining and export. By bunching up the costs, Dangote seeks to be paid for service rendered and not rendered.
My suggestion does not seek to counter those who argue that Dangote built a refinery to make a Profit. Of course, they are right. But a man should only be paid for service rendered…in this case, refining.
The cost of building a refinery is sunk or retrospective. It is recoverable over the lifespan of the refinery. It is not a just-now thing. It has little to do with the international price of crude, fluctuating FX, transportation, etc.
Operating from a Free Trade zone, Dangote already has all his taxes and other charges shaved. He also greatly benefited from CBN while building his refinery.
Rent-seeking muddies the argument. PMS’s price and cost elements are widely known. For instance, everyone in Canada knows that each of the 6,600 gas stations makes a 3 cents per litre profit on fuel sales after expenses.
Is our problem incompetence, greed, collusion, or lack of empathy for the suffering of the people? Or sheer wickedness!
Every leader must be clear on his/her purpose. Otherwise, don’t take the job.
-Igwebuike Mbanefo on WhatsApp
There was nothing treasonable in the conduct of these children- J.B. Dauda, SAN.
The Federal Government withdrew the charges against the EndBadGovernance protesters that it had earlier charged to court for treason. There were about 115 young people and 35 minors. The government responded to the adverse reactions to its actions in the matter.
J.B. Dauda, SAN, was one of the voices against the government’s action.
The only thing obscene about the Federal High Court proceedings in Abuja yesterday is the nature of the charge, which is allegedly treason. Minors and that is if they are less than 16 years are usually treated as adults when they are found committing crimes. So, had they been charged with the right offences in the territory of the States where they allegedly misconducted themselves, I would have had no problems.
The highest offences that they could have been charged for are ‘conduct likely to cause a breach of the peace’, ‘unlawful assembly’ ‘, wilful destruction of public property’, and ‘theft’, otherwise known in the South of Nigeria as ‘Stealing’ and other offences of like nature I.e., ‘Affray’, which are not only State Offences but bailable offences.
Thus, the Attorney General of the Federation has no locus to charge any of the young men we saw in the dock for any offence committed during the #endbadgovernance riots within the territory of their respective States.
It is a complete caricature of the Federalism that we claim to operate in Nigeria, where State Governments abdicate their responsibilities to the Federal Government and turn a blind eye to the pillaging of the rights of their citizens. For the avoidance of doubt, there was nothing treasonable in the conduct of these children or young men as discernible from the charge. If our systems were working, they could easily have been charged for the offences mentioned above in Juvenile or Magistrate Courts within the territory of the States where it is alleged they committed those riot-induced offences.
One point that is clear here, which appears to have been glossed over by a lot of us, is that the defendants, be they children or adults, have already spent over 3 months in very dehumanising detention conditions.
This is very inhumane and a breach of their fundamental rights. It is my view that even if they committed the offences they are being accused of, (certainly not Treason) the maximum sentences that could have been handed down should have been reasonable fines and in serious cases, imprisonment not exceeding 3 months in the proximate correctional facility or borstal institution.
Federal Government intervention, typified by this unwarranted movement to Abuja, was unnecessary and a failure of our systems. We rightly ought to feel a collective sense of guilt and shame.
I call on FGN to discontinue these charges and release all those charged for these State offences, with adequate rehabilitative compensation paid to them.
One last point is to interrogate the sense of responsibility of those who had custody of these young men since they were arrested and incarcerated three months ago. What happened to the monies voted for caring for them whilst in custody? Did any of them die in custody? These, to me, are the points to interrogate. If FGN or the President is serving Nigerians, there should be a multi-departmental inquiry into this matter.
J.B. DAUDU SAN
PAST NBA PRESIDENT.
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