“We Will Stop Subsidising”: FG Speaks on Powering 3 Million CNG-Powered Vehicles in 3 Years

“We Will Stop Subsidising”: FG Speaks on Powering 3 Million CNG-Powered Vehicles in 3 Years

  • The federal government said that Nigeria could save up N2.5 billion annually from converting 1 million cars to run on CNG
  • It noted that the project could help to reduce inflation and several other issues plaguing the country
  • The programme director said that between 40% to 50% of savings from petrol could be realised from the conversion

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Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The federal government has said that every one million cars converted to run on compressed natural gas will save almost $2.5 billion annually.

FG speaks on powering 3 million cng vehicles
The CNG project has the potential to lessen the inflation that is now plaguing the country's economy. Photo Credit: Maskot, Spinny
Source: UGC

At the South-South/South-East Stakeholders Engagement Meeting on the Presidential Initiative on CNG, which took place in Port Harcourt, Rivers State, on Friday, Michael Oluwagbemi, the initiative's program director, shared more insights about it.

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According to Oluwagbemi, the project has the potential to lessen the inflation that is now plaguing the country's economy.

Per a BusnessDay report, he said that the federal government's push for compressed natural gas (CNG) is essential to the country's economic growth and the end of the pollution and environmental degradation era.

He pointed out that although the nation has plenty, it lacks the means to use it and that CNG is cheaper, cleaner, and would lower transportation costs.

Oluwagbemi stated:

“Nigeria is the second largest waste of oil and gas. We exploit it and waste it then continue to suffer poverty. The president has set us on natural gas features and set up 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 the government.

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“It has the capacity of reducing inflation. It is cheaper. You can realize between 40 per cent to 50 per cent savings from patrol. This is good for Nigeria and it is safer. It is 18 times safer than petrol and diesel. It is cleaner and safer for the environment.
“We will stop subsidising poverty importing unemployment and exporting jobs. We will be using our own natural gas to drive our transportation sector."

To the ordinary person, the programmed director said this translates to a reduction in the cost of transportation.

He added:

“There is enough demand for natural gas all we need to do now is to open stations, pipelines and conversation centres. When we convert our vehicles, 1,000,000 vehicles they will convert, it saves the country about $2.5 billion a year.
“This will also save us 6,000,000 litres a day. These are monies that we can spend on hospitals on roads.”

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Installation of pumps for cheaper fuel increases

Legit.ng reported that since November last year, the deployment of dispensing pumps for CNG has risen by 233% in six months.

Michael Oluwagbemi, Coordinator and Chief Executive of the Presidential Initiative on CNG (Pi-CNG), disclosed this as he addressed journalists at a Mikano International CNG Vehicle assembly plant tour in Ogun State.

Mikano has shown interest in deploying about 18 CNG pumps nationwide for widespread CNG adoption.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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