Nigerian e-hailing drivers are choosing CNG cars over Electric Vehicles and here is why

The cost of petrol has continued to rise in Nigeria. This has brought about a massive reduction in the earnings of e-hailing drivers, forcing them to start exploring alternatives for their petrol-powered vehicles. But while electric vehicles (EVs) have since appeared as the next option, there are indications that the drivers are opting for Compressed Natural Gas (CNG cars).

According to drivers who spoke with this reporter, the cost of fueling their vehicles has become one of the two elements that affect their earnings the most daily. The other is the cost of maintaining the vehicles. However, while they acknowledge that EVs might present a good opportunity to do away with both costs, they are sceptical about going for them.

“We are sceptical about EVs because of the maintenance and durability of the batteries. We are used to handling gasoline vehicles but EVs will be new technology which many drivers will have to get accustomed to and that’s a learning curve there,” an e-hailing driver, Ajibola told me.

Why e-hailing drivers are choosing CNG over electric vehicles

Overall, EVs are cleaner and more affordable options for drivers in the long term. However, owing to the prevailing economic realities and low purchasing power, Nigerian drivers find themselves struggling in the short term.

Considering their immediate limitations, CNG cars are more affordable than EVs for several reasons.

The first reason is that it costs way less to switch to CNG cars. Switching to an EV means buying a (brand) new vehicle. The cheapest electric cars in the market today go for between N10 million to N15 million. This is a lot of investment for an e-haling driver, a burden which renders it impossible for most.

On the other hand, CNG cars are more affordable because the driver does not need to buy a new vehicle. All it requires is to retrofit CNG cylinders into their existing vehicle and fuse them into the petrol engines.

According to a Daily Trust report, this conversion should cost between N300,000 to N600,000 depending on the exchange rate. In addition, the retrofitting does not affect petrol usage and the driver could switch between CNG and petrol whenever they want.

Considering the cost of gas and how it affects the e-hailing drivers’ earnings, Ray, a Nairaland user who purportedly works with Nigerian Independent Petroleum Company (NIPCO), says a full cylinder contains 16 standard cubic metres (SCM) of compressed natural gas. One standard cubic meter costs N200. Therefore, a full cylinder would cost N3200. He also claimed that one cylinder on a 4 plug engine would give a mileage of over 200km. Comparatively, he claims N10,000 worth of CNG equals N40,000 worth of petrol.

From another perspective, since gas is usually measured in kilograms, one kilogram of compressed natural gas costs N230. As a result, 12kg of gas costs N2,760. And, 12 kg of CNG is about 60 litres of petrol. 

Ajibola told this reporter that drivers are willing to undergo the retrofitting and install the cylinders in their vehicles:

“We have already largely bought into the idea of using CNG to power our vehicles given the greater operational time gas gives over the use of petrol and diesel. Also, it is much more affordable when compared to the cost of gasoline. Hence, the only things stopping drivers are the cost of retrofitting and the safety of the cylinder. Nevertheless, these two things won’t deter a majority of the drivers from installing in their cars if it’s within affordable budgets,” he said.

Interestingly, the Nigerian e-hailing drivers union, the Amalgamated Union of App-based Transporters of Nigeria (AUATON) has concluded plans to finance retrofitting for its members. The project will be carried out in collaboration with the Sterling Alternative Financing Bank.

Although the union did not state how much the retrofitting would cost, it noted that the repayment plan would be N5,000 every day. It also calculated that the conversion would save drivers 75% on petrol costs.

In its analysis, AUATON claimed that driving on petrol, the average daily fuel cost is N20,000. This would result in a minimum monthly expenditure of N520,000 for an average of 26 days. Driving on CNG cars, however, daily CNG cost would be N5,000. This would make a total of N130,000 monthly. Inclusive of the daily repayments of ₦5,000, the combined monthly expense would be ₦260,000. 

This means drivers have saved at least ₦260,000 on fuel alone by the conversion.

CNG vs EV war: a possible conclusion

By choosing CNG vehicles over EVs, e-hailing drivers in Nigeria are choosing to make their beds in a place they are already comfortable lying in.

It is a lot more affordable in the short and medium term but most importantly, it is a system they are already conversant with. So, nothing much has changed. This is much different from switching to electric vehicles where even their routine may be forced to change.

But, this does not rule out the possibility of adopting electric vehicles later.

Far from it. The keyword is change, and the more total the change, the more people are likely to be averse. In this case, EVs represent a total overhaul. Converting to CNG vehicles is a minor change in comparison. And, it appears to be the favoured option at the moment.

“How many would be willing to accept the learning challenge? Only a few, at first! Then, if there’s a semblance of success, more can adopt. So, don’t expect a quick adoption of the EVs. Moreover, there are a few drivers amongst us that use hybrid (gasoline & electric) and it’s been mixed tales which isn’t boosting the morale of drivers,” Ajibola said.

See also: Meet the Lagos e-hailing driver using a N10m electric car for Uber and Bolt