Federal Government Weighs 60% Reduction in Diesel Prices

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The Federal Government of Nigeria is set to achieve over 60 percent savings in diesel costs following the successful retrofitting of its train locomotives to operate on a dual-fuel system. This achievement is a major stride toward reducing operational expenses in the rail sector and promoting the use of cleaner energy.

Saidu Alkali, Nigeria’s Minister of Transportation, expressed his satisfaction with the successful test run in a statement released by the ministry on Friday.

The Minister highlighted the significance of this development, stating, “This feat is a step towards reducing the cost of transportation and making train rides more affordable for the general public.”

At the Amina J. Mohammed Train Station (also known as Idu Train Station) in Abuja, the Minister led a demonstration showcasing the capabilities of the retrofitted locomotives along the Abuja-Kaduna rail corridor. These newly upgraded locomotives now operate on a dual-fuel system, running on a 70 percent Liquefied Natural Gas (LNG) and 30 percent diesel mix.

The successful test run marks a critical milestone in the ongoing efforts of the Federal Ministry of Transportation to curb operational costs and shift towards cleaner energy solutions within Nigeria’s rail transport system.

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Alkali further elaborated on the technical aspects of the upgrade. Prior to the modification, the locomotives were entirely dependent on diesel for operation.

However, the introduction of the LNG-diesel mix significantly reduces the reliance on diesel, making the locomotives more efficient and environmentally friendly. While the system now operates primarily on LNG, diesel still accounts for 30 percent of the fuel consumption due to technical limitations.

Alkali acknowledged that a complete conversion to 100 percent LNG or Compressed Natural Gas (CNG) is not currently feasible because the heavy-duty engines were originally designed to run entirely on diesel. “It is not possible, technically, to convert it to CNG or LNG 100 percent,” he explained.

Samuel Uko, the Managing Director of De-Sadel Consortium, lauded this achievement, emphasizing its groundbreaking nature. He noted that this marks the first time a locomotive in Africa has been retrofitted to operate using LNG, positioning Nigeria at the forefront of rail innovation on the continent.

This development is seen as a significant step forward in Nigeria’s journey toward sustainable transportation, offering both economic and environmental benefits.

With the reduction in diesel consumption, the Federal Government expects substantial cost savings, while the shift to LNG helps reduce carbon emissions, contributing to the country’s broader goals for cleaner energy and sustainable development.

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