The Federal Government has said that about $2.5 billion would be saved yearly from every one million vehicles converted into Compressed Natural Gas-powered cars.
Michael Oluwagbemi, the programme director, presidential initiative on Compressed Natural Gas, disclosed this during the South-South/South-East Stakeholders Engagement Meeting on Presidential Initiative on CNG held in Port Harcourt, Rivers State on Friday.
Oluwagbemi explained that the initiative has the capacity to reduce the current inflation bedevilling the nation’s economy
He said the push for CNG by the Federal Government is germane for the economic development of the nation and to end the era of pollution and environmental degradation.
He noted that while the country has abundant, it lacked what it takes to utilise, pointing out that CNG is cleaner, cheaper and would reduce the cost of transportation.
Oluwagbemi stated, “The initiative of the government is critical to our national development and to the well-being of the people. Rivers State is the heart of the oil and gas region. Over the last five to six decades, these resources have continued to be wasted.
“Nigeria is the second largest waste of oil and gas. We exploit it and waste it then continue to suffer poverty. The president has set us on natural gas features and set up the nation on the path of growth. The use of gas ensures we have energy savings, mind you the price of Natural gas is controlled by the government.
“What the president is asking is to do more with the blessings God has given us. If we are able to move three million vehicles in the next three years we are going to end the era of environmental degradation.”
Oluwagbemi averred that the nation stands to benefit much from the energy transition, insisting that CNG is more reliable for the transportation sector of the country.
“Nigeria stands to gain a lot from the energy transition in the transportation sector. First and foremost, CNG is our own resource. Natural gas is everywhere in Nigeria. It is a much more reliable source of fuel in the transportation sector. No longer will there be crises out of Nigeria impact the economic livelihood of the country.
“It has the capacity of reducing inflation. It is cheaper. You can realize between 40 per cent to 50 per cent savings from patrol. This is good for Nigeria and it is safer. It is 18 times safer than petrol and diesel. It is cleaner and safer for the environment,” he added,
The Programme Director further said, “We will stop subsidising poverty importing unemployment and exporting jobs. We will be using our own natural gas to drive our transportation sector. To a common man, this translates to a reduction in the cost of transportation. Our job is to give incentives to the CNG vehicle. To ensure we close the financing gap that exists.
“There is enough demand for natural gas all we need to do now is to open stations, pipelines and conversation centres. When we convert our vehicles, 1,000,000 vehicles they will convert, it saves the country about $2.5 billion a year.
“This will also save us 6,000,000 litres a day. These are monies that we can spend on hospitals on roads.”
Also speaking, Fola Akinola, the chief executive officer of FEMADEC Energy Limited, disclosed that modalities have been concluded to open two CNG refuelling stations and two vehicle conversion parks in Port Harcourt.
Akinola said, “CNG is an old technology. We want to tell you that you have the opportunity to convert your vehicle from fuel to CNG. The stations will be launched in Port Harcourt and we are launching a refueling unit alongside. Rivers State is going to have a micro refuelling unit at Stadium Road and in GRA.
“For those that want to invest in CNG refuelling units it is available. Even those who have fuel State facilities can as well invest in this.”
