Nigerian Government Invests Over $450 Million in Natural Gas Project
Click to start listening
Abuja, Dec 10 (NationPress) The Nigerian government has allocated over $450 million to enhance the nation's compressed natural gas (CNG) value chain as part of a significant initiative aimed at mitigating rising petrol or gasoline prices while advocating for cleaner energy solutions.
This substantial investment has been directed towards establishing CNG mother stations, daughter stations, refueling stations, and conversion centers that are emerging throughout the most populous nation in Africa, as reported by Tosin Coker, the head of commercial for the Presidential CNG Initiative, according to Xinhua news agency during the 2024 Nigeria Energy Forum held in the southwestern region of Lagos.
Coker mentioned that the initiative has successfully converted over 10,000 vehicles from petrol to CNG. The goal is to increase this conversion rate to over 1 million vehicles transitioning from petrol to CNG by 2027.
In May 2023, Nigerian President Bola Tinubu ended the long-standing subsidy on gasoline, redirecting attention towards the use of CNG to help alleviate the impact of the country's most severe cost-of-living crisis resulting from the subsidy removal.
The government introduced the CNG initiative in August, with a target to reduce transportation costs by nearly 50 percent through the deployment of gas-powered public buses and the conversion of petrol-powered vehicles to gas.
Coker also emphasized that the government has been continuously educating citizens about the benefits of utilizing CNG for their vehicles, which, he noted, can ensure a cleaner environment, is cost-effective, and affordable.
