The Federal Government has explained the importance of Compressed Natural Gas (CNG) to economic development, saying every 1,000,000 vehicles converted to CNG will save the country about $2.5 billion.
The Programme Director of Presidential Initiative on Compressed Natural Gas (Pi-CNG), Michael Oluwagbemi, said the government’s push for CNG would end the era of pollution, environmental degradation and economic hardship.
Oluwagbemi spoke during a one-day South-South and Southeast Stakeholders Engagement Meeting in Port Harcourt, Rivers State.
He noted that natural gas is in abundance in the nation but the people lack the foresight to utilise it, insisting that CNG is cleaner, cheaper and will 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 future and set 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.
“What the President is asking is to do more with the blessings God has given us. If we are able to move three million vehicles in the next three years, we are going to end the era of environmental degradation”.
Oluwagbemi said the nation stands to benefit from the energy transition, adding that CNG is more reliable for the transportation sector of the country.
He said CNG has the capacity to reduce the current inflation troubling 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 for the transportation sector. There will no longer be crises and it will impact the economic livelihood of the country.
“It has the capacity to reduce inflation. It is cheaper. You can realise between 40% and 50% savings from petrol. It 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 common man, this translates to a reduction in the cost of transportation. Our job is to incentivise the CNG vehicle to ensure we close the financing gap that exists.
“There is enough demand for natural gas. All we need to do now is to open stations, pipelines and conversion centres.
“When we convert our vehicles, 1,000,000 vehicles converted will save 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”.
In his remarks, the Chief Executive Officer of FEMADEC Energy Limited, Fola Akinola said plans had been concluded to open two CNG refuelling stations 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 refuelling unit alongside.
“Rivers State is going to have a micro refuelling unit at Stadium Road and in GRA.
“Those that want to invest in CNG refuelling units, it is available. Even those who have fuel state facilities can as well invest in this”.
The Abia State Government said it had already diverted its N2 billion subsidy palliative from the federal government for investment in CNG.
The Commissioner for Energy and Environment, Abia State, Prof. Joel Ogbonna, told the Pi-CNG committee that his state had set all grounds ready to key into the presidential directive, adding that the state was ready to kick off.
He said: “When Governor Alex Otti came, he declared a state of emergency on environment. The governor has set aside N2 billion for the fuel subsidy for CNG. Abia State has set aside the Abia State Poly for training in CNG.
“We have also developed an industrial park to be able to produce gas. We want to also pass a bill so that people will be told what to do to ensure safety so that there will not be hazards.
“We are ready to take off with the CNG”.
