FG Generates over $500m in Investments in CNG, LPG, LNG Incentives in 10 Months
- The Nigerian government government said it has generated over $500 million from gas incentives in 2024
- The special adviser to President Bola Tinubu on Energy, Olu Verheijen, said incentives included waivers on VAT and import duties on LPG
- She disclosed that the Pi-CNG initiative of the Nigerian government has attracted over $170 million in private investments.
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian government said it made over $500 million in investments from January to October 2024 from the fiscal incentives introduced to boost the country's access to CNG, LPG and LNG.
The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, disclosed this on Monday, October 28, 2024, during the session's opening at the ongoing Oil Trading & Logistics Africa Downstream Energy Week in Lagos.
Source: Getty Images
FG gives VAT waivers on gas
She said the incentives included waivers on import duties and VAT on the sale and distribution of LNG, CNG, LPG, and associated equipment.
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The presidential aide said the incentives were intended to attract new investments and promote Nigeria’s energy portfolio diversification.
According to the minister, the government launched Pi-CNG to create a CNG ecosystem, achieving Nigeria’s objective of transitioning to cleaner transportation fuels and easing the impact of subsidy removal.
The National Tribune reports that Verheijen stated that the scheme has attracted over $170 million in private investments and government financing. Nigeria has over 125 vehicle conversion points, compared to seven in 2023.
She disclosed that the government is poised to provide affordable access to clean cooking options via electric stoves for women, stating that fiscal incentives have been created to achieve the goal.
FG opens a portal for CNG conversion credit
Legit.ng earlier reported that the Nigerian Consumer Credit Corporation (CreditCorp) has opened applications for the Credit Access for Light and Mobility Fund, which will provide consumer credit to help Nigerians access CNG conversions and solar home systems via partner financial institutions.
Dada Olusegun, Special Assistant to President Bola Tinubu on Social Media, announced this on Monday, October 28, 2024, asking Nigerians to leverage the initiative.
Why CreditCorp launched the CALM Fund
Olusegun said Nigerians seeking to convert their cars or build solar systems to power their homes can apply using the link.
According to reports, the Nigerian government launched the CALM Fund as a partnership between the Ministry of Finance Incorporated (MoFI) and the Nigerian Consumer Credit Corporation (CREDITCORP) and the Presidential Initiative on Compressed Natural Gas (Pi-CNG).
The initiative came after the Minister of State for Petroleum Resources (Gas) Ekperikpo Ekpo asked Nigerians to embrace CNG.
According to the minister, the CNG initiative has come to stay. Following President Tinubu's removal of the subsidy, Nigerians should spread awareness about it as a cheaper and cleaner alternative to petrol.
Nigeria Launches Loan for CNG Conversion
Legit.ng previously reported that the Ministry of Finance Incorporated, the Nigerian Consumer Credit Corporation (CREDICORP), and the Presidential Initiative on Compressed Natural Gas Ltd have launched the Credit Access for Light and Mobility Fund.
This occurred in Abuja on Wednesday, October 17th, during the signing of a Memorandum of Understanding between the three agencies.
The Punch reported that the programme aimed to offer reasonably priced credit for solar energy adoption and car conversions to compressed natural gas.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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