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Tag: CNG

  • Nigeria’s daily petrol consumption drops by 33.58%

    Nigeria’s daily petrol consumption drops by 33.58%

    Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), says the country’s domestic consumption for petrol has significantly dropped from 66.7 million liters, before the deregulation, to 44.3 million liters per day.

    Mr Farouk Ahmed, the Authority Chief Executive of NMDPRA said that the reduction represents about
    33.58 per cent daily.

    Ahmed disclosed this in his keynote address at the opening session of the Oil Trading and Logistics (OTL) 2023 Africa Week 2023 on Monday in Lagos.

    The NMDPRA boss said eight wholesale petroleum product suppliers out of 94 licensed oil marketers were issued permits to import into the country.

    According to him, those licensed delivered eight cargoes of petrol totaling 251,000 MT (291,238,670.69 litres) between June and September.

    Ahmed said that the drop in the number of licensed importers was due to the challenge of forex illiquidity which had constrained the oil marketing companies’ ability to import the product.

    He expressed optimism that the necessary efforts taken by the government to improve the stability of the harmonised forex market would support the importation of petrol by more oil marketing companies alongside the Nigerian National Petroleum Company Ltd,.

    Ahmed said: “Supply of petroleum products is expected to be further enhanced and secured by the coming onstream of Dangote Refinery and the rehabilitation of NNPCL refineries in the short to medium term.

    “The efforts of the Nigerian government towards ensuring that the overall national energy security of the country is administered in a manner that optimises position within the complex global energy dynamics.

    Ahmed said that a critical pillar for pursuing a structured energy transition in Nigeria is the adoption of gas as a transition fuel and the emplacement of strategic gas development frameworks through the Decade of Gas Program (DOGP).

    “The DOGP will ensure the accelerated growth of gas processing, storage, transportation, retail, and utilisation in Nigeria within the decade.

    “The programme has optimal industry inclusiveness and it’s making steady progress in the implementation of all its strategic objectives, initiatives and projects,” he said.

    Ahmed, therefore, noted that the full deregulation of the sector had further enhanced the nation’s capacity to adopt Compressed Natural Gas (CNG ) as a more sustainable and affordable alternative automotive fuel.

    “President Bola Ahmed Tinubu has launched the Presidential initiative on CNG (PiCNG), with the focus of providing immediate and long-lasting infrastructure for modern mass transit systems.

    He stated that the PiCNG had already commenced work and  adequately supported with all necessary tools, including required funding to meet its aspirations.

    Over 200 participants were in attendant with over 20 exhibitors.

  • CNG way cheaper than PMS – Gas Association

    CNG way cheaper than PMS – Gas Association

    The Nigerian Gas Association (NGA) has advised the public to adopt Compressed Natural Gas as an alternative to Premium Motor Spirit (PMS) or petrol, saying it’s way cheaper.

    According to NGA,  Compressed Natural Gas is 15 percent cheaper than PMS.

    The President of the association, Akachukwu Nwokedi, said this during a media briefing in Lagos.

    He said, “The Federal Government has to continue to make gas affordable, and we as an association support CNG, Train 7 because Nigeria has enough gas resources to achieve economic growth. Besides CNG is 15 per cent cheaper than petrol.”

    Prices of petrol had seen a rise from around N185 per litre to almost N600/litre in Lagos and its environs and above N700/litre up north.

    Nwokedi explained that reviewing the PIA would give rise to addressing issues such as multiple taxation, payment for gas and fees in dollars instead of naira, fiscal incentives, and others.

  • Why we prefer new vehicles with factory-fitted CNG – MOMAN

    Why we prefer new vehicles with factory-fitted CNG – MOMAN

    The Major Oil Marketers Association of Nigeria (MOMAN) has disclosed it has preference for new vehicles with factory-fitted Compressed Natural Gas (CNG) as against the conversion of vehicles to CNG.

    TheNewsGuru.com (TNG) reports Mr Clement Isong, the Chief Executive Officer of MOMAN made the disclosure on Saturday while commending the Federal Government’s decision to remove Value Added Tax (VAT) on diesel for a period of six months.

    Mr Isong said the FG’s decision to remove VAT on diesel for a period of six months was a step towards reducing the effect of subsidy removal on the Nigerian economy.

    Recall President Bola Tinubu on October 1 suspended the collection of VAT on diesel for six months, beginning in October.

    According to him, VAT is a consumer tax, and diesel is a fully deregulated product whose price is determined by market dynamics.

    Isong said that the removal of VAT on diesel would directly reduce the price for consumers by the rate of 7.5 per cent.

    He also noted that MOMAN was in support of the government’s efforts to alleviate the hardships caused by the removal of subsidies on petrol.

    In addition to the suspension of VAT on diesel, the government is also providing high-capacity CNG buses and promoting the conversion of vehicles to CNG.

    He said that this aligns with the government’s goal of promoting alternative and cheaper fuels, reducing reliance on petrol, and addressing the escalating energy costs.

    “The measures outlined, such as the suspension of VAT on diesel and the provision of high-capacity CNG buses, are some of the steps taken in the right direction to alleviate some of the burdens on consumers and the industry,” Isong added.

    On CNG conversion, the MOMAN boss said that the idea of free conversion of vehicles to CNG at the startup phase of the initiative was a positive development.

    “However, we have a preference for new vehicles with factory-fitted CNG options for quality assurance and safety reasons as well as easier maintenance.

    “Where conversion kits are to be utilised, we emphasise the need to ensure technical accountability, particularly for safety reasons.

    “MOMAN supports initiatives that encourage the adoption of cleaner and more affordable energy sources,” he said.

    Isong, who is also the executive secretary of MOMAN, said that the previous subsidy arrangement had adverse effects on the Nigerian economy.

    He said that the method of subsidy was untargeted, expensive, and unsustainable, particularly since the country was, in effect, subsidising the West African subregion.

    He said that the government had an opportunity to intervene on a short-term basis to manage escalating energy costs at a time when it was unusually high.

    According to him, this is being done by many other countries around the world.

    Isong said that MOMAN supports these short-term interventions, adding that provided they were targeted, affordable, well thought out, time-bound, and not negatively impact the Nigerian economy in the long term.

  • FG plans to convert 10 million PMS vehicles to CNG

    FG plans to convert 10 million PMS vehicles to CNG

    The Federal Government of Nigeria has promised that it would convert 10 million Premium Motor Spirit vehicles to Compressed Natural Gas in the next three years.

    In a statement on Wednesday, Spokesperson for the Minister of State Petroleum Resources (Gas), Louis Ibah, said the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, stated this while on a panel tagged “Energy Talk” at the ongoing ADIPEC 2023 conference and exhibition in Abu Dhabi, United Arab Emirates.

    The Minister said that the initiative was in partnership with the private sector.

    “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.

    According to Ekpo, the conversion will create over 100,000 jobs for Nigerians, increasing government savings from reduced subsidy payout for the importation of PMS, reducing carbon emission following the utilization of clean gas to drive internal combustion engines.

    Continuing, he added that the Federal Government is committed n creating an enabling operational and fiscal environment to support investments in the upstream, midstream and downstream gas sectors.

    He added that the administration of President Bola Ahmed Tinubu is poised to promote business 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.

     

  • FG not making effort to address issues raised – NLC

    FG not making effort to address issues raised – NLC

    The president of the Nigeria Labour Congress (NLC), Joe Ajaero has spoken out over the government’s refusal to budge on several issues.

    Ajaero who featured on  Television’s Politics Today shortly after  Monday’s deadlocked meeting with government officials noted that Federal government is yet to make concrete decisions concerning its demands.

    Among its demands are to address the consequences of petrol price hikes, review the minimum wage, provide a workable roadmap to the Compressed Natural Gas (CNG) alternative, fix the country’s refineries, and pay lecturers’ salary arrears.

    “They have not made any efforts on any issue,” Ajaero asserted.

    “Even the issue as simple as cash transfer or bringing buses on the road, nothing has happened to them. So, it’s a lack of willingness and we can’t muddle up all these issues.

    “Then you call a minimum wage as wage award. If anybody is looking at the issue of wage award as minimum wage, then there’s confusion within that class of people.”

    Citing a 2021 agreement on CNG vehicles reached with the then Minister of State for Petroleum, Timipre Sylva, the labour leader argued it was clear that a million vehicles could be converted within three months.

    The NLC president decried the Federal Government’s 2024 projection to deploy CNG buses for a more affordable mass transit system.

    “If anybody is telling you that until next year, nothing could be done, I’m telling you that the person is not telling us the truth,” he said.

    “What is so peculiar about next year when these processes will start? Is it that there are no CNG vehicles that can onto the road, or we can’t have some stations, even with IPMAN saying that their filling stations are available?”

  • What you should know about the Presidential CNG initiative

    What you should know about the Presidential CNG initiative

    President Bola Tinubu has approved the establishment of the Presidential Compressed Natural Gas Initiative (PCNGI) to ease the impact of fuel subsidy removal on Nigerians by reducing energy costs.

    This transformative initiative is to revolutionise the transportation landscape targeting over 11,500 new CNG-enabled vehicles and 55,000 CNG conversion kits for existing PMS-dependent vehicles.

    A statement by Ajuri Ngelale, Special Adviser to the President on Media and Publicity, said that the initiative would also encourage in-country manufacturing, local assembly and expansive job creation in line with the presidential directive.

    The initiative comprises of a Comprehensive Adoption Strategy and includes the following: Empowering Workshops Programme with Nationwide Network of Workshops and Local Assembly and Job Creation.

    Tinubu said that these are key points of emphasis of the initiative with an initial focus on mass transit systems and student hubs  to significantly reduce transit costs for the general populace in the immediate term.

    He said that the PCNGI would ensure a seamless integration of CNG utility within the current midstream and downstream energy value chain to support its sustainability.

    The president said that the PCNGI would facilitate the provision of workshops across all geopolitical zones and states with essential kits and comprehensive training for newly employed staff, thus creating new opportunities for technical skill development and employment.

    Tinubu added that the nationwide network of workshops, to be established through the initiative, would ensure widespread access and demand side utilisation of CNG technology and CNG-related expertise.

    This, he said, would facilitate smoother transitions for vehicle owners at the wider benefit of the Nigerian economy.

    Under the PCNGI, the following strategic objectives are expected to be achieved:

    The development of new stakeholder-operated Intrastate Mass Transit systems built on CNG.

    Support for states to on-board new CNG buses as part of their Intrastate Mass Transit network (wholesale conversion, retro-fitting and new purchase).

    The deployment of CNG buses through existing Private Mass Transit operators, including new financing programmes for operators through an innovative asset finance programme.

    Incentivise investors to invest in CNG processing, distribution and utilisation by providing incentives for enhanced investment and partnership.

    Deliver training and technology transfer to support the After-Sales Services and maintenance sub-industry to create sustainable jobs.

    The President said the focus on assembling CNG-enabled vehicles within the country would stimulate economic growth, create employment opportunities, and bolster the nation’s automotive manufacturing capabilities.

    He said that it also underscores the administration’s commitment to a cleaner environment by reducing carbon emissions and promoting energy security through the utilisation of domestic natural gas resources.

  • Fuel Subsidy Removal: NEC endorses mass deployment of Compressed Natural Gas (CNG) vehicles

    Fuel Subsidy Removal: NEC endorses mass deployment of Compressed Natural Gas (CNG) vehicles

    The National Economic Council (NEC) has approved the planned mass deployment of Compressed Natural Gas (CNG) vehicles to all states for public

    The Director of Information, Office of the Vice President, Mr Olusola Abiola, made the statement on Thursday in Abuja.

    Abiola noted that the decision to approve the proposal is part of the resolutions at the NEC meeting chaired by Vice President Kashim Shettima.

    Shettima said the federal government will vigorously pursue the mass deployment of CNG and electric vehicles nationwide.

    “We will also vigorously pursue the mass deployment of CNG-powered vehicles and establishment of autogas conversion plants/kits in all states in the short-term.

    “We will also deploy electric buses and cars with charging infrastructure across the country.”

  • Oil marketers advocate for natural gas as alternative to petrol

    Oil marketers advocate for natural gas as alternative to petrol

    Oil marketers in the country have asked the Federal Government to approve the deployment of Compressed Natural Gas (CNG), saying that it’s 400 percent cheaper than  Premium Motor Spirit, popularly called petrol.

    Recall that the removal of petrol subsidy has spiked PMS from N198/litre to an average of  N540/litre across the country, a development that has caused the prices of goods and services to go up significantly.

    Since then, oil marketers have been making efforts to provide an alternative to petrol, as they told our correspondent that the switch from PMS to CNG would help in addressing the high cost currently being spent by Nigerians on fuel.

    “What we are saying is that by the time CNG is deployed, it will take off at least 400 per cent of what we are paying for fuel now,” the National President, Independent Petroleum Marketers Association of Nigeria, Chinedu Okonkwo, stated.

    He added, “And if you check this 400 per cent, it means that the cost of CNG that will deliver what one litre of petrol is going to deliver, should be less than N110 anywhere in Nigeria, whereas PMS is sold at over N540//litre.

    That is what we are saying, and this is based on the current open market exchange rate, because we are not using the former official rate of the Central Bank of Nigeria, rather we are using the parallel market calculation. So floating the forex does not affect our calculations.”

    On whether marketers had met with the new government on the essence of deploying CNG, Okonkwo told our correspondent that IPMAN, as well as other oil dealers had engaged the current administration on this.

    He said, “We are talking with them. Government is a continuum. We are still talking with this new government and we hope the meeting between them and labour will yield desired results.

    “You know part of their (labour) demand is that the government should include CNG into the energy mix. Once that is given and followed, it will give us a better trajectory.”

    On June 19, 2023, the Federal Government said it had set up a steering committee to consider the various demands presented by the organised labour centres, among which include the conversion of vehicles to run on CNG. The steering committee is to produce a workable framework before August 14, 2023.

    The Special Adviser to the President on Communications, Special Duties and Strategy, Dele Alake and Presidents of the Nigerian Labour Congress and Trade Union of Nigeria, Joe Ajaero and Festus Osifo, respectively, disclosed this to journalists in separate briefings after a meeting at the State House, Abuja.

  • FG plans use of compressed natural gas for mass transit

    FG plans use of compressed natural gas for mass transit

    The Federal Government is considering the use of Compressed Natural Gas(CNG), which the country has in abundance to reposition the transportation sector in urban cities across the country.

    The Minister of State for Transportation, Prince Ademola Adegoroye said this in a statement by the Director, Press and Public Relations of the Ministry, Mr Eric Ojiekwe on Tuesday in Abuja.

    Adegoroye made this known when he received the report on “Implementation-Ready Report on National Strategy Development for the Adoption of Compressed Natural Gas (CNG)-based Transportation System in Nigeria’s Urban Cities” in Abuja.

    The minister, while commending his erstwhile colleague, Sen. Gbemisola Saraki, assured that the report would be given prompt attention.

    “I appreciate that the last minister who was here, Sen. Gbemisola Saraki, had the initiative to set up a committee to work on this, I think it is a wonderful Initiative.

    “I assure you that Nigerians must say something about us that when we were here, we took steps to getting things done.

    ”And this things are in tandem with what the world wants or what the world desires at this time,” he said.

    According to Adegoroye, greenhouse gas emissions poses health and dire environment consequences and Nigeria cannot afford to lag behind.

    He said this was especially due to the fact that Nigeria is a signatory to Green House Emission Policy aimed at reducing carbon emissions in the environment.

    While presenting the report to the minister, the ministry’s Permanent Secretary, Dr Magdalene Ajani said that the report was sponsored by World Bank and done by Nigeria Erosion and Watershed Management Project (NEWMAP).

    Ajani said this was done through the Federal Ministry of Environment with highlights on strategic steps to take in the adoption of CNG vehicles in the transportation sector in the country.

    “It will help us in kick-starting the revolution in the change of the transport sector, with vehicle conversion to CNG on the adoption of CNG vehicles, for our road transport mode within the urban city to start with.

    “Original Equipment Manufacturers in couple of years down will probably not be supporting vehicles that are powered by diesel or gas as everyone is moving towards Electric Vehicles (EV).

    ”The report takes into cognisance of how Nigeria can move from diesel and Premium Motor Spirit (Petrol)  to natural gas and in about 10 to 15 years,” Ajani said.

    In May 2019, the Federal Executive Council approved a National Action Plan to reduce short-lived climate pollutants.

    This plan developed by the Federal Ministry of Environment, aims to improve air quality and reduce Nigeria’s contribution to climate change.

    This will be done through 22 specific mitigation measures in eight source sectors – transportation, cooking and lighting in households, industry, waste, oil and gas, agriculture and power.

    The Federal Ministry of Transportation is vested with the task of coordinating the implementation of these mitigating measures.

  • Northerners are the target of Lagos okada ban, destruction – CNG

    The Coalition of Northern Groups (CNG) has said the ban on Okada in Lagos and subsequent destruction of seized motorcycles are targeted at northerners resident there.

    The group therefore warned against the exercise, saying the action targets northern operators and therefore was “completely unacceptable.”

    The group’s spokesperson, Abdul-Azeez Suleiman, described the action as “rash, irrational, insensitive and wicked.”

    It noted that the fact that Lagos State Government would in just 72 hours of announcing the ban, seize and subject 7,548 bikes, mostly owned and operated by northerners to the crusher justifies their assertions.

    ALSO READ: Why bandits kidnap students in Northern Nigeria; CNG

    “We note that of recent, State governments in the South have resorted to imposing and enforcing controversial, unfriendly and damaging legislation that effectively curtail the right to freedom of movement of the northern people living in their midst,” said the group.

    “More disturbing is that like in the current case of Lagos, the enforcers of these discriminatory laws almost all the time fail to draw the decent distinction between the northerner as citizen, or commercial motorcycling as an occupation, from criminality.

    “To the makers of these laws and their formal and informal enforcers, it matters little that just because some Okada riders commit certain breaches does not make all motorcyclists criminals.

    “In fact, they are enforcing the laws without taking into consideration that the vast majority of northerners in Lagos – including those who are Okada operators – are peaceful everyday people with the same needs, anxieties and hopes as the rest of Nigerians,” it added.

    “This brutal encroachment by the Lagos State government on the right of northerners to freedom of movement, freedom of association and other fundamental human right safeguards, is eroding the consciousness that for decades, different tribes in Nigeria have been accommodated and tolerated in the North, without their hosts enacting discriminatory laws specifically to intimidate, harass and endanger them, their families, their properties or their trades.

    “Notwithstanding the hard evidences of the notoriety of these settlers in the perpetration, commission, spread and promotion of various crimes and antisocial behaviours within their host communities, the North has never attempted to discriminate or label them beyond seeking solutions through legitimate and civil interventions.

    “No matter through which lenses we look, therefore, we only see in this fast-phased agenda a manifestation of an ignoble system that tends to deploy a warped application of the law solely to endanger northerners living and doing legitimate businesses in Lagos which is unacceptable, ” Suleiman added.

    The group expressed worry about reports of organized and coordinated attacks in Ogwatoghose and Ikare areas of Ondo State, especially targeting northerners and destroying their aluminum and iron material market and the wanton looting of their assets.

    It therefore called on the Lagos and other state governments with similar discriminatory legislation to review and redress the apparent bias so that they too can claim the right to protection of their people living in various parts of the North.

    “Rather than callously destroying the motorbikes which are valuable assets to the northern operators, it would have been more decent and more closely acceptable if the Lagos government had just ordered a regulated evacuation of the unwanted northerners and their assets back home,” he said.

    Suleiman consequently called for the urgent intervention of the Federal Government to ensure the protection of the rights of the northerner wherever he chooses to live in the country.

    “We also demand immediate action from the federal authorities in thoroughly investigating the ugly attacks on northerners in Ondo and the arrest and prosecution of the perpetrators and their supporters.

    “We demand from the Ondo State government, an immediate review of the situation and payment of compensation for damages and losses that resulted from the attack on innocent northern traders.”

    The group blamed the situation on the levity and cowardice of the northern governors and elite in speaking out for the right of the northerner to be protected when he lives as minority elsewhere.

    TheNewsGuru.com reports that the CNG suddenly became vocal on issues that affect the North following the rise in Political