The Federal Government of Nigeria has announced plans to save $12 million daily, equivalent to $4.4 billion annually, by reducing the country’s reliance on premium motor spirit (PMS) and converting a significant number of vehicles to use Compressed Natural Gas (CNG).
This initiative is part of the government’s efforts to promote the use of alternative fuel sources and reduce the nation’s fuel import bill.
According to the Coordinator, Regulations, Compliance, and Facilitation, Presidential Initiative on Compressed Natural Gas (PCNGi), Engineer Zayyan Tambari, the government aims to convert at least one million vehicles to CNG-enabled vehicles. This move is expected to significantly reduce the country’s fuel consumption, currently estimated at 50 million litres per day.
To achieve this goal, the government requires an investment of $890 million to establish alternative fuel infrastructure. Minister of State, Petroleum Resources (Gas), Ekperikpe Ekpo, reassured stakeholders of the government’s commitment to fully utilising the nation’s gas resources. He emphasized the need for specific materials and tools to ensure safe usage of CNG as fuel for vehicles.
The programme director and CEO of PCNGi, Michael Oluwagbemi, stressed the importance of transitioning to natural gas, citing its affordability, cleanliness, safety, and sustainability. He highlighted the need for a smooth transition and regulatory compliance to prevent any adverse effects.
The government’s initiative has been hailed as a significant step towards reducing the country’s fuel import bill and promoting the use of alternative fuel sources. With the potential to save $4.4 billion annually, this move is expected to have a positive impact on the nation’s economy.