The Federal Government of Nigeria has unveiled an ambitious plan to convert a substantial portion of the country’s vehicle fleet from Premium Motor Spirit (PMS) to Compressed Natural Gas (CNG) within the next 36 months.
In an official statement released on Wednesday, the Spokesperson for the Minister of State Petroleum Resources (Gas), Louis Ibah, reported that the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, made this significant announcement while participating in a panel discussion titled “Energy Talk” at the ADIPEC 2023 conference and exhibition in Abu Dhabi, United Arab Emirates.
The Minister revealed that this transformative initiative is a collaborative effort between the government and the private sector, signifying a joint commitment to reduce the country’s reliance on traditional fuels and embrace more sustainable and environmentally friendly energy alternatives.
“Our ministry is working with the organised private sector to roll out over two million CNG conversions kits for free within the next nine months to push the utilisation of CNG as main fuel for vehicles nationwide. This initiative is aimed at converting 10million vehicles from PMS to CNG in the next 36 months,” he said.
Ekpo highlighted several key advantages of this initiative, including the creation of more than 100,000 employment opportunities for Nigerian citizens. Additionally, the program aims to boost government savings by reducing subsidies for the importation of Premium Motor Spirit (PMS) and contribute to a decrease in carbon emissions through the adoption of clean natural gas for internal combustion engines.
The Minister reiterated the unwavering commitment of the Federal Government to establish a conducive operational and fiscal environment that encourages investments in the upstream, midstream, and downstream sectors of the gas industry.
He emphasized that President Bola Ahmed Tinubu’s administration is steadfast in its mission to foster business growth and development centered around Nigeria’s abundant natural gas resources.
“This is evident in the actions of Mr. President when he split the Ministry of Petroleum Resources into Oil & Gas respectively. This singular action is a testament to President Tinubu’s resolve to promote gas commercialization in Nigeria for export and domestic utilisation,” Ekpo said.
The minister, who is the head of the Nigerian delegation to the event, listed several initiatives relating to government’s action to promote and support gas based industrialisation and decarbonisation agenda with the corporation and support of the organized private sector.
Top amongst these initiatives are: Decade of Gas (Upstream, Midstream and Downstream); getting cooking gas to every home and CNG for vehicles; gas flare commercialisation programme and gas to petrochemicals.
The minister informed the audience about specific policy changes targeted at gas pricing regime, non-associated gas acreage development, and review of the terms of the production sharing contracts.
“These are all aimed at attracting investments of more than $20 billion into the country for NAG offshore and deep water acreage development,” he said.
He added that the ministry is working closely with her respective parastatals to get these reforms across to the upper legislative chamber for approval and subsequently for President’s endorsement.
