Bridging the Fuel Divide: A Comparative Economic and Environmental Analysis of Compressed Natural Gas and Automotive Gas Oil for Sustainable Transportation in Nigeria

References

[1] International Energy Agency (IEA), “World energy outlook 2023,” Paris, 2023. [Online]. Available: https://www.iea.org/reports/world-energy-outlook-2023

[2] BP, “Statistical review of world energy 2023,” London, 2023. [Online]. Available: https://www.bp.com/en/global/corporate/energy-economics/statistical-review-of-world-energy.html

[3] World Health Organization, “WHO global air quality guidelines: particulate matter (PM2.5 and PM10), ozone, nitrogen dioxide, sulfur dioxide and carbon monoxide,” Geneva: WHO Press, 2021. https://www.who.int/publications/i/item/9789240034228

[4] S. A. Khan, M. S. Khan, and M. A. Ahmed, “Techno-economic and environmental analysis of compressed natural gas (CNG) as an alternative fuel for transportation,” Energy Reports, vol. 7, pp. 444–453, 2021. https://doi.org/10.1016/j.egyr.2021.07.114

[5] S. O. T. Ogaji, “Natural Gas: A Bridge Fuel to a Sustainable Energy Future in Nigeria,” Journal of Sustainable Energy Development, vol. 14, no. 2, pp. 88–104, 2019.

[6] Nigerian National Petroleum Company Limited (NNPC), “2023 Monthly Financial and Operational Report (MFOR),” Abuja: NNPC Ltd, 2023.

[7] World Bank, “Nigeria Development Update (June): Staying the Course,” Washington, DC: World Bank Group, 2024. https://www.worldbank.org/en/country/nigeria/publication/nigeria-development-update-ndu

[8] C. A. Odumugbo, “Natural gas utilization in Nigeria: Challenges and opportunities,” International Journal of Environmental Sciences, vol. 12, no. 4, pp. 110–125, 2021. https://doi.org/10.1016/j.jngse.2010.08.004

[9] Federal Ministry of Environment (FMEnv), “Nigeria’s First Nationally Determined Contribution – 2021 Update,” Abuja: FMEnv, 2021. https://unfccc.int/sites/default/files/NDC/2022-06/NDC%20INTERIM%20REPORT%20SUBMISSION%20-%20NIGERIA.pdf

[10] C. Ubani and U. Ikpaisong, “Use of CNG as autofuel in Nigeria,” European Journal of Engineering Research and Science, vol. 3, no. 10, pp. 1-6, 2018.

[11] D. O. Bolaji, K. A. Bello, and B. O. Bolaji, “An overview of the progress in the use of compressed natural gas in Nigeria,” Nafta-Gaz, no. 6, pp. 417–423, 2025.

[12] A. E. Adegoriola and I. M. Suleiman, “Adopting Gas Automobile Fuels (LPG & CNG) into the Nigerian Transportation System,” Journal of Economics and Sustainable Development, vol. 11, no. 14, 2020.

[13] A. K. Chao, “Investigating the strategic impacts of natural gas on transportation fuel diversity and vehicle flexibility,” M.Sc. Thesis, Massachusetts Institute of Technology, 2013.

[14] GlobalPetrolPrices, “Diesel prices: Nigeria,” 2025. [Online]. Available: https://www.globalpetrolprices.com/Nigeria/diesel_prices/

[15] Daily Post Nigeria, “Fuel Crisis: CNG retail price benchmarks in Nigeria,” 2025. [Online]. Available: https://dailypost.ng/2024/09/06/fuel-crisis-federal-government-announces-cng-retail-price-benc

[16] International Energy Agency (IEA), “Fuel consumption of cars and vans,” Paris: IEA, 2019. https://www.iea.org/data-and-statistics/charts/fuel-consumption-of-cars-and-vans-2019

[17] MET Group, “Natural gas vs. diesel: Energy density and efficiency,” MET Group Industry Insights, 2021. https://group.met.com/en/mind-the-gap/energy-efficiency/natural-gas-vs-diesel

[18] IPCC, “Climate Change 2014: Synthesis Report. Contribution of Working Groups I, II and III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change,” Geneva, Switzerland: IPCC, 2014. https://www.ipcc.ch/report/ar5/syr/

[19] U.S. Environmental Protection Agency (EPA), “Greenhouse Gas Emissions from a Typical Passenger Vehicle,” 2025. [Online]. Available: https://www.epa.gov/greenvehicles/greenhouse-gas-emissions-typical-passenger-vehicle

[20] The Engineering ToolBox, “Methane - Density and Specific Weight,” n.d. [Online]. Available: https://www.engineeringtoolbox.com/methane-density-specific-weight-d_2020.html

[21] Business Intelligence Africa (BIA), “The cost of vehicle conversion to CNG in West Africa,” BIA Reports, 2023. https://africa.businessinsider.com/

[22] International Energy Agency (IEA), “World energy outlook 2024,” Paris: IEA, 2024 https://www.iea.org/reports/world-energy-outlook-2024

[23] Presidential CNG Initiative, “Strategic Roadmap for CNG Deployment in Nigeria,” Abuja: Federal Government of Nigeria, 2024. https://pci.gov.ng/

[24] National Bureau of Statistics (NBS), “Transport Fare Watch and Labor Force Statistics,” Abuja: NBS, 2024. https://nigerianstat.gov.ng/

[25] Federal Government of Nigeria, “Economic Recovery and Growth Plan (ERGP): Transforming Nigeria,” 2017. https://www.budgetoffice.gov.ng/index.php/economic-recovery-growth-plan-2017-2020

[26] United Nations Environment Programme, “Global Methane Assessment: Benefits and Costs of Mitigating Methane Emissions,” Nairobi: UNEP, 2021. https://www.unep.org/resources/report/global-methane-assessment-benefits-and-costs-mitigating-methane-emissions

[27] Clean Air Fund, “The State of Global Air Quality Funding 2023,” London: Clean Air Fund, 2023.

[28] African Development Bank, “African Economic Outlook 2024: Driving Africa's Transformation,” Abidjan: AfDB, 2024. https://www.afdb.org/en/knowledge/publications/african-economic-outlook

@article{1714371,
      author = {Adaobi Stephenie Nwosi-Anele, Kaine Bene Chinwah},
      title = {Bridging the Fuel Divide: A Comparative Economic and Environmental Analysis of Compressed Natural Gas and Automotive Gas Oil for Sustainable Transportation in Nigeria},
      journal = {Iconic Research And Engineering Journals},
      year = {2026},
      volume = {9},
      number = {8},
      pages = {1058-1068},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1714371.pdf},
      abstract = {This study presents a comparative economic and environmental analysis of Compressed Natural Gas (CNG) and Automotive Gas Oil (AGO) as transport fuels in Nigeria. The research combined quantitative modelling of vehicle fuel costs, lifecycle greenhouse gas (GHG) emissions, and total cost of ownership (TCO) with scenario sensitivity analysis, supported by qualitative insights on adoption barriers and stakeholder perspectives. The results indicate that CNG offers substantial economic advantages, with per-kilometer fuel costs 65–80% lower than AGO under current Nigerian price conditions and payback periods on conversion investments typically within one to two years. Environmentally, CNG reduces direct combustion CO₂ emissions by approximately 36% per 100 km and significantly lowers NOₓ, SO₂, and particulate matter, yielding major air quality and health co-benefits in urban centers. The study also highlights macroeconomic and social benefits, including reduced dependence on imported refined products, foreign exchange savings, job creation in local industries, and improved public health outcomes. Nonetheless, risks related to infrastructure deficits, policy uncertainty, methane management, and public perception must be mitigated through robust regulation, blended financing, and phased deployment strategies. Overall, CNG represents a pragmatic transition fuel for Nigeria, capable of enhancing energy security and sustainability while delivering immediate cost and health benefits, provided upstream emissions and infrastructural challenges are addressed.},
      keywords = {Economic Analysis; Energy Transition; Natural Gas; Sustainable Transportation},
      month = {February},
      doi = {https://doi.org/10.64388/IREV9I8-1714371}
  }