By Our Correspondent
Amid escalating production costs driven by surging diesel and petrol prices, Nigerian manufacturers are increasingly turning to natural gas as a more sustainable and cost-effective alternative.
The removal of fuel subsidies has tripled petrol prices, intensifying the country’s cost-of-living crisis. In response, the federal government has launched a Compressed Natural Gas (CNG), programme to reduce transportation costs by nearly 50%, promote the conversion of vehicles to CNG, and introduce CNG-powered buses across major cities.
Additionally, the Dangote Refinery’s recent entry into the diesel market has triggered a significant price drop, bringing diesel costs down from ₦1,700 to ₦1,350 per litre.
This decline is expected to ease financial pressure on manufacturers dependent on diesel-powered operations.
Industry leaders highlight that the shift to natural gas not only offers a cost-effective solution but also aligns with global sustainability goals.
The Manufacturers Association of Nigeria (MAN), has urged businesses to embrace sustainable energy practices, noting that energy expenses constitute 30-40% of production costs.
Zheng Wei, Managing Director of Tiget Business International Limited, noted that some manufacturers are leveraging improved gas supply around Lagos to sustain production despite recurring grid collapses.
With Nigeria’s 200 trillion cubic feet of proven natural gas reserves, stakeholders see this transition as a strategic move toward long-term industrial stability and economic resilience.
