May 19, 2024

FG targets to reduce inflation through CNG

Tinubu directs all MDAs to purchase CNG-powered vehicles

…to save Nigeria $2.5 billion yearly

By Davies Iheamnachor

The Federal Government of Nigeria has stated that it is targeting to tackle the lingering inflation through the investment in Compressed Natural Gas, CNG.

FG also noted the energy transition in the transportation sector is worthwhile, noting that with CNG the nation would be saving about $2.5 billion, in every one million vehicles converted to be powered with CNG, yearly.

The Programme Director, Presidential Initiative on Compressed Natural Gas, Pi-CNG, Engr. Michael Oluwagbemi, said the push for CNG by the Federal Government is critical to the economic development of the nation, noting that it would also end the era of pollution and environmental degradation.

Oluwagbemi spoke during a one-day South-South and South- East Stakeholders Engagement Meeting in Port Harcourt, weekend.

Oluwagbemi opined that the natural gas was in abundance in the nation, but that the people lacked the foresight on utilizing it, noting CNG is cleaner, cheaper and would reduce the cost of transportation.

He said: “The initiative of the government is critical to our national development and to the well-being of the people. Rivers State is the heart of the oil and gas region.

“Over the last five to six decades these resources have continued to waste. Nigeria is the second largest waster of oil and gas. We exploit it and waste it then continue to suffer poverty.

“The president has set us on natural gas feature and set up on the nation on the path of growth. The use of gas ensures we have energy savings, mind you the price of Natural gas is controlled by government.”

Oluwagbemi averred that the nation stands to benefit much with the energy transition, explaining that CNG has the capacity to reduce the current inflation bedeviling the nation’s economy.

He said: “Nigeria stands to gain a lot from the energy transition in the transportation sector. First and foremost, CNG is our own resource. Natural gas is everywhere in Nigeria.

“It is a much more reliable source of fuel the transportation sector. No longer will there be crises out of Nigeria impact the economic livelihood of the country.

“It has the capacity of reducing inflation. It is cheaper. You can realise between 40% to 50% savings from patrol. This is good for Nigeria and it is safer. It is 18 time safer than our petrol and diesel. It is cleaner and safer for the environment.

“There is enough demand for natural gas all we need to do now is to open stations, pipelines and conversations centres. When we convert our vehicles, 1,000,000 vehicles they will convert it save the country about $2.5 billion a year.”

Meanwhile, Fola Akinola, the Chief Executive Officer of FEMADEC Energy Limited, disclosed that plans have been concluded to open two CNG refueling station, and two vehicle conversion parks in Port Harcourt.

He said: “CNG is an old technology. We want to tell you that you have the opportunity to convert your vehicle from fuel to CNG.

“The stations will be launched in Port Harcourt and we are launching a refueling unit alongside. Rivers State is going to have a micro refueling unit at Stadium Road and in GRA.

“Those that wants to invest in CNG refueling units it is available. Even those who have fuel State facilities can as well invest in this.”