Viability of Compressed Natural Gas (CNG) Adoption in the African Energy Market: Implications for the Hospitality Industry in Nigeria.

Abstract

The quest by Africa to diversify its energy has been accelerated by global environmental issues, the escalating fuel prices and the unending power supply challenges. Despite the fact that the majority of the debate on the adoption of CNG is centered on the transport and manufacturing sector, little has been done to understand its impact on the hospitality industry, an energy intensive yet important sector. This case study explores the prospect of CNG becoming part of the energy mix in Nigeria with emphasis on its use in the hospitality industry. Hotels, resorts, restaurants, bars and event centres make up the industry that mainly relies on quality energy supply to provide quality services. Tola Adeyemi, the General Manager of Lagos Grand Hotel has been burdened by the elimination of fuel subsidies, currency fluctuations, skyrocketing diesel prices, and energy costs which has consumed 20 to 30 percent of their operating budget. Such pressures jeopardise business sustainability as well as service delivery and competitiveness within an industry where the environment, social, and governance (ESG) are becoming an important factor.