In a scathing critique of the federal government’s Compressed Natural Gas (CNG) policy, Martin Onovo, a prominent petroleum industry expert and former presidential candidate of the National Conscience Party (NCP), has labeled the initiative as reckless and poorly executed. Onovo, who also serves as the head of policy positions at the Movement for Fundamental Change (MFC), argues that the policy, which was introduced with the promise of providing a cleaner and more affordable alternative to traditional fossil fuels, has failed to deliver on its objectives. Speaking to Daily Independent, Onovo outlined a litany of issues plaguing the CNG initiative, including flawed concept engineering, inadequate policy development, and systemic inefficiencies. His remarks come at a time when Nigeria is grappling with energy challenges, environmental concerns, and persistent economic difficulties.
The CNG Policy: Promises and Pitfalls
The federal government’s CNG policy was launched with much fanfare as part of Nigeria’s broader energy transition strategy. The initiative aimed to leverage the country’s abundant natural gas reserves to provide a cost-effective and environmentally friendly fuel alternative for vehicles. By promoting the conversion of petrol and diesel-powered vehicles to CNG, the government sought to reduce the nation’s dependence on imported petroleum products, lower transportation costs, and mitigate the environmental impact of fossil fuel consumption. Proponents of the policy argued that CNG, which burns cleaner than gasoline or diesel, would help address air pollution in urban centers and align Nigeria with global trends toward sustainable energy.
However, according to Onovo, the implementation of the CNG policy has been marred by a series of missteps that have undermined its potential. “The purpose of clean and cheaper fuel has failed due to many reasons, including very poor concept engineering and poor policy development,” he stated. Onovo’s critique highlights the gap between the policy’s ambitious goals and the practical realities of its execution. He pointed to several specific challenges that have hindered the adoption of CNG in Nigeria, including limited infrastructure, high conversion costs, safety concerns, and rising CNG prices.
One of the most significant barriers to the success of the CNG policy is the limited number of CNG refueling stations across the country. For a nation with millions of registered vehicles, the availability of CNG stations remains woefully inadequate, making it difficult for vehicle owners to access the fuel. This scarcity of infrastructure has discouraged many Nigerians from converting their vehicles to CNG, as the inconvenience of traveling long distances to refuel outweighs the potential cost savings. Onovo noted that less than one percent of registered vehicles in Nigeria have been converted to CNG, a stark indication of the policy’s limited reach.
High conversion costs represent another major hurdle. Converting a vehicle to run on CNG requires specialized kits and technical expertise, which can be prohibitively expensive for the average Nigerian. Despite government promises to subsidize conversion costs, Onovo argues that these efforts have been insufficient and poorly managed. Many vehicle owners, particularly commercial drivers who rely on their vehicles for their livelihoods, have been unable to afford the upfront costs of conversion, further limiting the policy’s impact.
Safety concerns have also cast a shadow over the CNG initiative. The handling and storage of CNG require strict adherence to safety protocols to prevent accidents, such as gas leaks or explosions. However, Onovo contends that inadequate training and regulatory oversight have raised doubts about the safety of CNG conversions and refueling processes. These concerns have further eroded public confidence in the initiative, discouraging widespread adoption.
Perhaps most troubling is the rising cost of CNG itself. While the policy was marketed as a way to provide cheaper fuel, Onovo pointed out that CNG prices have been subject to fluctuations, driven by market dynamics and inefficiencies in the supply chain. This has undermined one of the core promises of the initiative, as many Nigerians find that the cost savings of using CNG are not as significant as anticipated. Onovo attributes these price increases to poor management capacity and systemic inefficiencies within the agencies responsible for implementing the policy.
Corruption and inefficiency, long-standing challenges in Nigeria’s public sector, have also played a significant role in the policy’s shortcomings. Onovo alleges that funds allocated for the development of CNG infrastructure and subsidies have been mismanaged, with little to show for the investments. This has led to delays in the construction of refueling stations and the distribution of conversion kits, further hampering the initiative’s progress. “The CNG policy is a classic case of good intentions derailed by poor execution,” Onovo remarked, emphasizing the need for greater accountability and competence in policy implementation.
Crude Oil Theft: Progress Amid Persistent Challenges
In addition to his critique of the CNG policy, Onovo addressed the issue of crude oil theft, a persistent problem that has long plagued Nigeria’s oil industry. He acknowledged that there has been some progress in curbing this illicit activity in recent years, largely due to the efforts of the Nigerian Navy and other security agencies. “Our Navy has made significant progress in the war against crude oil theft. In the last few years, our Navy has intercepted increasing quantities of stolen crude oil and illegally refined petroleum products,” Onovo stated.
The Nigerian Navy’s “Operation Delta Sanity” has been particularly effective in targeting illegal refining sites and disrupting the operations of oil thieves. These efforts have contributed to an increase in official oil production figures, which currently stand at approximately 1.8 million barrels of oil per day (BOPD). This represents a significant improvement from previous years, when crude oil theft and pipeline vandalism resulted in substantial losses for the country. By intercepting stolen crude and dismantling illegal refineries, the Navy has helped to stabilize production and boost government revenues.
However, Onovo was quick to point out that these gains have not translated into tangible improvements in the lives of ordinary Nigerians. Despite the increase in oil production and revenues, poverty levels in Nigeria continue to rise, a trend that Onovo attributes to the “incompetence and corruption” of the current administration under President Bola Tinubu. He argues that the benefits of higher oil revenues have been squandered due to mismanagement and a lack of focus on addressing the country’s socio-economic challenges.
The persistence of poverty in Nigeria, despite its vast oil wealth, is a longstanding issue that has fueled public discontent. According to recent data, over 40% of Nigerians live below the international poverty line, and unemployment rates remain high, particularly among young people. Onovo’s remarks underscore the disconnect between Nigeria’s natural resource wealth and the economic realities faced by its citizens. He contends that without significant reforms to address corruption and improve governance, the gains from increased oil production will continue to elude the majority of Nigerians.
Environmental Concerns: Regulatory Failures in the Oil Sector
Onovo also raised serious concerns about environmental degradation in Nigeria’s oil-producing regions, accusing some operators of flouting regulations governing the disposal of produced water. Produced water, a byproduct of oil extraction, contains contaminants that can harm marine ecosystems if not properly treated and disposed of. According to Onovo, some operators are dumping untreated produced water into the seas, in violation of standards set by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
“This is contrary to its approved produced water treatment and disposal standard, which is by caisson,” Onovo stated. The use of caissons—specialized structures designed to contain and treat produced water—is intended to minimize the environmental impact of oil production. However, Onovo alleges that regulatory failures by the NUPRC have allowed operators to bypass these standards, contributing to pollution in Nigeria’s coastal waters. This has serious implications for marine life, coastal communities, and the broader ecosystem, exacerbating the environmental challenges faced by the Niger Delta region.
The Niger Delta, where much of Nigeria’s oil production takes place, has long been a hotspot for environmental degradation. Decades of oil spills, gas flaring, and improper waste disposal have left the region’s waterways and farmlands heavily polluted, affecting the livelihoods of local communities. Onovo’s allegations of regulatory failure highlight the need for stronger enforcement mechanisms and greater accountability in the oil sector. Without decisive action to address these issues, the environmental toll of oil production will continue to weigh heavily on Nigeria’s coastal communities.
Refinery Woes: A Tale of Public and Private Disparities
Turning his attention to Nigeria’s refining sector, Onovo provided a sobering assessment of the state of the country’s refineries. He noted that the privately-owned Dangote Refinery, located in Lagos, has emerged as a major player in Nigeria’s petroleum industry, accounting for approximately 80% of the country’s refined petroleum products. The refinery, which began operations in 2023, has a capacity of 650,000 BOPD and has significantly reduced Nigeria’s reliance on imported fuel. Onovo praised the Dangote Refinery for its operational success, noting that it has set a benchmark for efficiency in the sector.
In contrast, government-owned refineries in Kaduna and Port Harcourt remain dormant, while the Warri Refinery is only partly operational. This disparity between private and public refineries underscores the challenges facing Nigeria’s state-owned enterprises. Onovo accused the Nigerian National Petroleum Company Limited (NNPCL) of failing to rehabilitate public refineries despite substantial funds allocated for the purpose. “The outrageously exaggerated sums set aside for the rehabilitation of all the refineries were apparently dissipated in endemic corruption and incompetence,” he said.
The failure to revive Nigeria’s public refineries has been a source of frustration for many Nigerians, who view these facilities as critical to achieving energy self-sufficiency. The NNPCL has faced criticism for its handling of refinery rehabilitation projects, with allegations of mismanagement and lack of transparency. Onovo noted that the Economic and Financial Crimes Commission (EFCC) is currently investigating the case, raising hopes that those responsible for the mismanagement of funds will be held accountable.
Meanwhile, private modular refineries have begun to play a role in Nigeria’s refining sector, though their combined output remains modest at less than 35,000 BOPD. These smaller-scale facilities, often located in the Niger Delta, have helped to diversify the refining landscape but lack the capacity to meet the country’s fuel demands. Onovo’s analysis highlights the dominance of the Dangote Refinery and the continued struggles of public refineries, painting a picture of a sector marked by stark contrasts in performance.
Broader Implications and the Path Forward
Martin Onovo’s critique of Nigeria’s CNG policy, crude oil theft, environmental practices, and refinery operations reflects broader systemic challenges in the country’s energy sector. His remarks underscore the need for comprehensive reforms to address issues of corruption, inefficiency, and regulatory failure. While initiatives like the CNG policy and efforts to curb crude oil theft show promise, their success depends on effective implementation and robust oversight.
To revitalize the CNG initiative, Onovo suggests that the government prioritize the expansion of refueling infrastructure, reduce conversion costs through targeted subsidies, and address safety concerns through better training and regulation. He also calls for greater transparency in the allocation of funds to prevent mismanagement and ensure that resources are used effectively.
On the issue of crude oil theft, Onovo’s acknowledgment of the Nigerian Navy’s progress is encouraging, but he emphasizes the need for sustained efforts to completely eradicate the problem. This includes strengthening security measures, improving coordination between agencies, and addressing the socio-economic factors that drive illegal activities in the Niger Delta.
The environmental concerns raised by Onovo highlight the urgency of enforcing existing regulations and holding operators accountable for their actions. The NUPRC must take a more proactive role in monitoring compliance and ensuring that produced water is disposed of in accordance with approved standards. This will require increased funding, better training for regulatory staff, and stronger collaboration with environmental organizations.
Finally, the challenges facing Nigeria’s public refineries underscore the need for a new approach to managing state-owned enterprises. Onovo’s call for accountability in the rehabilitation process is a reminder that public resources must be managed with transparency and efficiency. The success of the Dangote Refinery offers a model for what can be achieved with private investment and competent management, but it also highlights the need for public refineries to be revitalized to serve the broader interests of the Nigerian people.
Conclusion
Martin Onovo’s analysis paints a sobering picture of Nigeria’s energy sector, marked by missed opportunities and systemic failures. His critique of the CNG policy, crude oil theft, environmental practices, and refinery operations reflects the broader challenges facing a nation endowed with vast natural resources but struggling to translate this wealth into meaningful development. As Nigeria navigates its energy transition and seeks to address its economic and environmental challenges, the issues raised by Onovo serve as a call to action for policymakers, regulators, and industry stakeholders. By addressing the root causes of inefficiency, corruption, and regulatory failure, Nigeria can unlock the full potential of its energy sector and deliver tangible benefits to its citizens.
