The call to prioritize Compressed Natural Gas (CNG) over Premium Motor Spirit (Petrol) by the Minister of Finance and Coordinating Minister of the Economy of Nigeria, Wale Edun, sparks crucial debate amidst economic and environmental considerations.
Speaking at the inauguration of the Nigerian Banking Sector report by Afrinvest in Lagos on Tuesday, Edun, represented by Dr Armstrong Takang, the Managing Director of the Ministry of Finance Incorporated (MoFI), emphasized that a significant shift towards CNG adoption in Nigeria would substantially reduce production costs for businesses and households. He also urged both the government and private sector to increase investments in the Federal Government’s CNG plan.
Highlighting the financial advantage, Edun pointed out the substantial difference in cost between CNG and PMS. “It ranges from half of it, and sometimes, it comes down to a quarter of what it costs to run on PMS,” he emphasized. Stressing the environmental benefits, he underscored that gas is cleaner than PMS, making an aggressive move towards CNG a game-changer not only for vehicle fueling but also for mass transit and factories relying on fuel and diesel.
It is noteworthy that in August this year, President Bola Ahmed Tinubu approved the establishment of the Presidential Compressed Natural Gas Initiative (PCNGI) with the aim of facilitating nationwide adoption of CNG. The government highlighted that CNG, at N213 per standard cubic meter as of August 2023, is a more economical alternative compared to petrol, which surged to over N600 per litre after subsidy removal in June.
