Nigeria’s abundant gas reserves can offer immediate solutions to the nation’s energy challenges if well managed.
The Managing Director of Eterna Plc, Abiola Lukman Lawal, stated this while speaking on the theme: ‘Driving energy sufficiency in the downstream sector through CNG and LPG’ at the 2024 Annual Strategic International Conference of the Association of Energy Correspondents of Nigeria (NAEC) in Lagos
He advised Nigerians to use Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) for transportation and cooking as the products are viable and cost effective.
Mr Lawal highlighted some benefits of the products to include reduction in greenhouse gas emissions.
“Others are cleaner combustion compared to traditional fuels, cost savings for consumers and businesses. This will create more jobs in the CNG and LPG supply chain.” He said.
On government’s efforts to ensure adequate circulation and accessibility of the two products, Lawal said Nigeria’s Decade of Gas Initiative, Presidential CNG Initiative and Installation of CNG stations were launched to achieve the purpose.
“12 new CNG stations were commissioned in Lagos and Abuja in 2024. 35 new CNG stations across the various geopolitical zones planned.
“The Presidential CNG Initiative (PCNGi) was launched in 2023, aimed at alleviating the hardship of fuel price increase mostly in transportation (via buses). The Conversion Incentive Program to either provide free or heavily discounted car conversions.
“The Standard Organization of Nigeria has also introduced 80 standards covering aspects of CNG utilization, including production, storage, transportation, and appliance compatibility.
“The Decade of Gas initiative, launched in 2021, is focused on transforming Nigeria into a gas-powered economy by 2030 through a series of policy reforms, gas supply projects maturation, gas infrastructure expansion, capacity building and robust investment attraction strategies.”
Lawal noted that Nigeria’s energy sufficiency can be achieved through CNG and LPG if critical stakeholders collaboratively invest in the gas sector.
He further suggested, “large scale investment in gas infrastructure – $20billion is required annually. The Presidential CNG Initiative plans to raise over $350million for CNG infrastructure by 2027.
“$750 million required to develop LPG transport and retailing infrastructure.
Policy and regulatory reform to encourage private sector engagement and investment.
“Tax credits and rebates for purchasing CNG vehicles and converting existing vehicles to CNG. Grants and low-interest loans can encourage private investment in CNG and LPG infrastructure Champion consumer sensitization efforts to create awareness of CNG/ LPG as viable alternatives to oil.
“Educate the public about the environmental and economic benefits of CNG and LPG through media campaigns, workshops, and community programmes. Incorporate information about CNG vehicles and their benefits in driver education and training programmes to inform new drivers of CNG as a viable alternative to conventional fuels.”
The Executive Secretary of Major Energies Marketers Association of Nigeria (MEMAN ) Clement Isong, noted that association advocates for cleaner and more sustainable energy solutions through the promotion of natural gas (CNG & LPG), solar power and biofuels like ethanol.
“We also work closely with partners to encourage the adoption of renewable energy practices in Nigeria.”
Mr Isong, who was represented by Adelanke Dayo-Adepoju, expressed appreciation for the government’s new fiscal incentive under the VAT Modification Order 2024, which exempts vital energy products and infrastructure from VAT.
These include Diesel, Feed Gas, LPG, CNG, Electric Vehicles, LNG infrastructure, and Clean Cooking Equipment, aligning with MEMAN’s advocacy for sustainable energy solutions.
