"There Are No Special Suppliers": FG Vows to Prevent Monopoly, Cabals in CNG Initiative

"There Are No Special Suppliers": FG Vows to Prevent Monopoly, Cabals in CNG Initiative

  • The FG has vowed to prevent any monopolistic control in its implementation of the CNG initiative
  • The government also mentioned that there will be no special suppliers and no special companies
  • It says its intention is to collaborate with enterprises and businesses capable of establishing conversion facilities

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

The Federal Government has made a clear commitment to prevent any undue concentration of power or monopolistic control in its implementation of the energy transition initiative, which involves the adoption of Compressed Natural Gas (CNG) as a fuel source for vehicles nationwide.

Toyin Subair, the Senior Special Assistant (SSA) to the President on Domestic Affairs, emphasized this during his address at the inauguration of a CNG conversion and training facility at the National Institute of Transport Technology (NITT) in Abuja.

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Subair's declaration follows the FG's newly resolved focus on CNG with plans to open about 10,000 vehicle conversion centres in Lagos.

Compressed Natural Gas, CNG
The Presidential Committee launching the CNG buses in Abuja Photo Credit: State House
Source: Getty Images

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No monopoly in CNG

Addressing the fear of monopolistic intents like what was observed earlier in the oil sector, SUbair said that all players would be treated equally and none would receive special treatment.

He said:

“With the Presidential Compressed Natural Gas Initiative (P-CNGI), there is no monopoly that is going to be created.
"There are no special suppliers, there are not going to be special companies. All the players from every part of the country will be treated equally.
“There is no cabal that will be involved in this. We are opening the economy and this part of it to everybody in the country.

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FG to collaborate with banks, firms and other stakeholders

Subair highlights the Federal Government's intention to collaborate with organizations, enterprises, and businesses capable of establishing conversion facilities, importing kits, or facilitating training programs.

Furthermore, the government is actively fostering cooperation between banks and private equity firms to provide a comprehensive view of the sector and promote inclusivity for all interested parties.

According to The Nation, he emphasized that President Bola Tinubu remains dedicated to ensuring a fair and equitable playing field for everyone involved.

FG optimistic about the success of CNG transition project

Subair conveyed his disappointment at the squandering of the nation's resources on the importation of refined petroleum products from overseas, emphasizing that CNG represents the most effective means to curtail transportation expenses within the country.

With this, the FG has already rolled out plans to convert 10 million vehicles to CNG in the next 36 months.

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Subair highlighted several advantages of CNG, pointing out its cost-efficiency and the potential to fuel all vehicles at just one-third of the prevailing expenses.

He also expressed his satisfaction with the optimism displayed by numerous individuals regarding the prospects of the transition project.

N230 per kg: Nigerians converting petrol engines to gas will get cheap fuel

In related news, Legit.ng reported that CNG will cost N230 per kilogram when gas-powered buses are introduced.

This follows an earlier report that as part of its efforts to address the nation's transport issues, the government is scheduled to roll out 11,500 gas-powered buses.

This was disclosed during a stakeholders' meeting on Sunday, October 29, 2023, in Abuja at the Bank of Industry headquarters.

According to Subair, the program will encourage Nigerians to switch to CNG instead of petrol and help them save two-thirds on transportation expenses.

Source: Legit.ng

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