Techno-Economic Analysis of Compressed Natural Gas as an Alternative Fuel for the Transport Sector in Southwestern Nigeria

Nigeria's reliance on conventional fuels like gasoline and diesel is prompting an investigation into more affordable options. Compressed natural gas, or CNG, emerges as the leading choice in this search. With its significantly lower price point compared to alternatives, CNG provides fleet and individual owners substantial fuel cost savings. According to the research, it is possible to save more than N680 for every 100 kilometers driven compared to petrol. Although this gives users a favorable impression, upfront costs must be considered. Conversion kits are necessary to modify existing automobiles to CNG, and a network of CNG refueling stations needs to be established. The initial expenses may seem daunting; however, the long-term fuel savings and any government subsidies would significantly ease the burden. Nigeria's reliance on conventional fuels like gasoline and diesel has prompted the search for more affordable and sustainable alternatives. This study presents a techno-economic assessment of compressed natural gas (CNG) as an alternative fuel for the transport sector in Southwestern Nigeria. Results show that CNG adoption could reduce fuel costs by over ₦5,518 per 100 kilometers compared to petrol, providing substantial economic relief to transport operators. Beyond cost savings, CNG offers environmental benefits, including lower greenhouse gas emissions and improved air quality, helping to address the region’s environmental challenges. However, upfront costs for vehicle conversion kits and limited refueling infrastructure remain significant barriers. Nonetheless, long-term fuel savings, environmental gains, and potential government subsidies make CNG a viable and sustainable solution.