Minister Explains $200 Million CNG Investment, Lists the Gains for Nigeria
- The federal government has spent over $200 million in setting up CNG infrastructure across the country
- The Minister of State for Petroleum Resources (Gas) has now listed out the benefits of this infrastructure to Nigerians
- Meanwhile, the government is still on course to convert over 100,000 vehicles to CNG before the end of 2025.
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The federal government has provided reasons for the $200 million investment into Compressed Natural Gas (CNG) infrastructure.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, stated that the country has a target of converting 100,000 vehicles in 2025, and the infrastructure will help achieve said target.
Speaking at the 2025 International Energy Summit (NIES) in Abuja, Ekpo noted that when achieved, it will drastically reduce transportation costs in Nigeria.
Source: Getty Images
He also pointed out how this infrastructure will help Nigeria promote sustainable energy and protect the environment.
He said that this is a significant part of the federal government’s plan to transition Nigeria to cleaner energy sources and away from fossil fuel, adding that it would also bring economic relief as gas is cheaper.
FG drives CNG initiative
Minister Ekpo promised that the federal government would drive the programme successfully, as it had been initiated to provide Nigerians with cost-effective, safer, and environmentally safe fuel options, the GUARDIAN reports.
Recall that petrol price surged after the removal of fuel subsidies in 2023. This triggered the introduction of the CNG programme by the federal government.
The government announced plans to set up 150 new CNG retail stations across Nigeria in 2025, to make the product more accessible to users.
Ekpo disclosed that major progress has been recorded in the programme, especially in the area of developing gas infrastructure and policy reforms to guide the sector.
Source: UGC
He referenced the recent PPP collaborations between the Nigerian National Petroleum Company Limited (NNPCL) and several private sector partners to set up mini-LNG plants in Nigeria.
These partnerships set the stage to attract more private sector investments in the industry, especially in CNG, LNG, and gas-to-chemicals, and build a sustainable ecosystem that will create jobs, energy security, and a cleaner environment, Ekpo noted.
The CNG vehicles are notable for being safer options, and the NNPCL has shared plans to purchase 500 new CNG-powered trucks to be used for the transportation of petroleum products.
This will reduce the incidences of petrol-tanker related road crashes and explosion, as has recently become rampant across Nigeria.
FG grants license to NIPCO Gas
In related news, the federal government has granted gas distribution licenses to Nipco Gas Limited.
The company also received a 25-year permit to engage in fuel-to-gas conversion for vehicles in key locations nationwide.
The Company MD stated that the company is actively collaborating with PCNGI to expand the number of CNG conversion kits.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
