In this blog let us look at how CNG Business is profitable in Nigeria and Reasons Why You Should Invest in CNG.
INTRODUCTION
The world is turning away from petrol to CNG as an alternative energy source because it is cheaper and burns cleaner. Experts say converting from petrol to Natural Gas Vehicles (NGV), a campaign Egypt has taken head-on and making progress with, is a necessity that can reduce Nigeria’s exposure to the wasteful subsidy regime. CNG can save Nigeria billions of naira as cars run on a cleaner and healthier fuel, but the sector needs more action from the government, not promises or projections
CNG Business is profitable in Nigeria.
CNG provides Nigeria with affordable alternatives to existing available fuel products. It’s about 40% cheaper than petrol in Nigeria and with continued investments. CNG Business is profitable in Nigeria because it does not only provide economic benefits by creating jobs and stimulating local economies, it also contributes significantly to Nigeria’s national goals of reducing emissions and combating climate change. An increased CNG adoption will foster economic benefits by reducing fuel costs for consumers and businesses alike.
The following are important reasons CNG Business is profitable in Nigeria:
- Its utilization can help Nigeria’s largest economy leverage its 600 trillion cubic feet of natural gas reserves, cut down excessive addiction for fuel demands and convert the country from an oil to a gas giant.
- NGVs maintenance costs are lower because CNG is a cleaner-burning fuel and generates less wear-and-tear on some engine components. This means less vehicle maintenance and longer engine life.
- Compressed Natural Gas (CNG) is eco-friendly. CNG produces fewer hydrocarbons such as carbon dioxide, carbon monoxide and other suspended particles. CNG also protects the environment by helping reduce the effects of global warming.
- life of lubricating oils is also increased, as CNG does not contaminate and dilute the crankcase oil.
- Natural gas is cheaper per equivalent gallon than gasoline (an average of 15% to 50% less than gasoline).
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Reasons Why You Should Invest in CNG
CNG, a cleaner-burning and domestically available fuel, offers numerous benefits that make it an attractive choice for environmentally conscious consumers and businesses alike. Reason why one should invest in CNG:
- Energy Security and Domestic Availability: NG vehicles is the widespread availability and domestic production of natural gas in many countries. Unlike petroleum, which is often imported from foreign sources, natural gas can be extracted domestically, reducing dependence on imported fossil fuels and enhancing energy security.
- Cost Efficiency and Fuel Savings: The price of CNG is generally lower than that of petrol, and the cost differential can be substantial in many regions. The lower cost of CNG can be attributed to several factors, including the abundance of natural gas reserves, lower production and distribution costs, and favorable government policies aimed at promoting the use of cleaner fuels.
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- Reduced Noise Pollution: quiet driving experience compared to their petrol-powered counterparts, contributing to reduced noise pollution in urban areas. CNG engines have a smoother and more even combustion process. This results in lower levels of engine noise, both inside the vehicle cabin and externally.
- Reduced Maintenance: NG is a dry fuel, meaning it does not contain contaminants or impurities that can lead to corrosion or degradation of fuel system components. This reduces the risk of premature failure and can result in lower maintenance costs over the lifetime of the vehicle.