Oil marketers have written to the Federal Government proposing the construction of about 30,000 gas stations to cushion the impact of the planned removal of the petrol subsidy. Nigerians are counting down to the projected June 2023 date for the subsidy’s termination, and there are fears that petrol could rise to roughly N750 per litre once the subsidy is withdrawn. In a letter dated 3 April 2023, addressed to the Finance Minister and signed by Chinedu Okonkwo, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), the marketers requested an audience to present a palliative solution. They explained that, through a partnership with Gas Analytics & Solutions Ltd, they are prepared to co‑locate natural‑gas dispensers at over 30,000 filling stations nationwide, creating a rapid roll‑out of compressed natural gas (CNG) for vehicles.
The marketers argued that this platform would shield Nigerians from a sudden surge in petrol prices, reduce foreign‑exchange outflows needed to import fuel, and cut greenhouse‑gas emissions by 30‑60 % compared with petrol and diesel. They noted that the Nigeria Midstream Downstream Petroleum Regulatory Authority and the Gas Aggregation Company of Nigeria have already formed a joint working committee to issue the necessary permits, approvals, and natural‑gas feedstock. What remains, they said, is support from the Central Bank of Nigeria (CBN) to release the N250 billion Gas Expansion Fund as loans for vehicle owners—particularly owners of Keke Napeps and trucks—to purchase CNG conversion kits. IPMAN has applied to the CBN, via NIRSAL Microfinance Bank, for a partnership to develop a financing scheme for qualified Nigerians, and is seeking the Ministry of Finance’s assistance to finalise the arrangement.
The Gas Expansion Fund, launched in August 2021, is intended to stimulate financing for the gas value chain, covering projects such as gas‑processing plants, small‑scale petrochemical facilities, CNG regasification modules, conversion‑kit manufacturing, compression stations, and micro‑distribution outlets. The fund is financed by the CBN and aims to encourage investment in natural‑gas utilisation, thereby reducing reliance on imported petrol.
Meanwhile, the Nigerian Labour Congress (NLC) said it will engage the incoming administration after its inauguration to discuss the future of the fuel‑subsidy regime. In a telephone interview, NLC Vice President Adewale Adeyanju explained that the union has not yet taken a formal position on subsidy removal and is waiting for the Bola Tinubu‑led government to be sworn in before meeting with officials. He dismissed claims that the All Progressives Congress (APC) accuses the NLC of opposing the subsidy’s removal, stating that the union has made no public statement either for or against the policy. Adeyanju warned that maintaining the subsidy could collapse the economy and urged the government to be transparent about any future changes, noting that a sudden removal would be painful but ultimately beneficial for Nigerians.
The National Association of Road Transport Owners (NARTO) also called for an immediate end to the petrol subsidy. President Yusul Othman said full deregulation of the downstream oil sector would enable instant payment of freight rates, eliminating the current system where transporters work on credit and wait two to three months for reimbursement through government bureaucracy. Othman acknowledged that the short‑term impact of subsidy removal might be harsh, but argued that, in the long run, it would be advantageous. He pointed out that only a small minority of Nigerians own private vehicles, so subsidising fuel benefits few while burdening the majority. He suggested that the funds saved from the subsidy could be redirected to improve public services and alternative transport solutions.
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