Nigeria is not yet ready to roll out widespread use of compressed natural gas (CNG) vehicles and should instead channel its gas resources into powering industries and building critical infrastructure, according to energy expert Ademola Ogunbajo.
Ogunbajo, who leads Oando Clean Energy, made the remarks during a panel at the Nigerian Oil and Gas (NOG) Energy Week in Abuja, where he cautioned that the country risks misdirecting its energy transition if it focuses prematurely on CNG vehicles.
“This isn’t the decade for gas-powered cars—it’s the decade for building the infrastructure that will allow gas to drive economic growth,” he said. He argued that Nigeria’s limited gas supply should be directed toward powering industries, charging hubs, and productive sectors like agriculture and manufacturing.
Ogunbajo estimated that Nigeria could unlock up to $250 billion in value from renewable energy over the next three years, but only if investments are purposefully targeted at areas that create long-term economic value.
He stressed that the country’s energy strategy must go beyond just talking about clean energy and start delivering results, especially as Africa grapples with the outsized effects of climate change despite contributing a small share of global emissions.
The discussion also highlighted challenges facing Africa’s public transport systems. Ogunbajo noted that Nigeria’s system is not yet mature enough to fully support a shift away from private cars. However, efforts are underway — including the rollout of electric buses and taxis — to modernise urban mobility and raise awareness of carbon footprints.
He revealed that Oando is deploying electric taxis that will notify passengers of how much carbon their ride has saved, to personalise climate awareness.
Despite gas playing a vital transitional role, Ogunbajo warned that Nigeria must prepare for a future where gas is no longer an attractive investment. He also flagged a major concern — Africa’s heavy reliance on foreign-made renewable technology.
He estimated that Africa will spend around $50 billion on energy infrastructure over the next decade, but without local manufacturing capacity, up to 90% of that money could flow to economies like China.
“To avoid enriching others while we stay stuck, we need to build our own capacity—factories, skills, and value chains,” he said. He also called for major reforms in education to equip young Africans with the skills required for the evolving energy landscape.
Other panelists echoed similar sentiments. Omotayo Hassan of TotalEnergies stressed that no renewable push can succeed without fixing Nigeria’s fragile power grid. He also called for better use of government subsidies, streamlined project approvals, and greater inclusion of women and youth in energy planning.
Olayiwola Ajilore of GE Vernova warned African countries to avoid repeating old mistakes — such as exporting raw minerals like lithium and cobalt without processing them locally. He called for regional cooperation and industrial policies that retain value within the continent.
Ogunbajo wrapped up with a sobering reminder that Africa’s energy goals won’t be achieved through short-term wins. He urged leaders to break the cycle of politically-driven, surface-level solutions and commit to long-term reforms that will truly transform the energy sector.
