The prevailing uproar generated by the recent fuel subsidy removal by the Nigeria current administration of President Ahmed Bola Tinubu is gradually attracting possible and sustainable ways of cushioning the draconian effect of fuel hike in the country.  One of the possible avenues of cushioning this harsh effect of fuel hike on the citizenry is the call by major stakeholders for an establishment of Compressed Natural Gas Stations across the country.

Championing these calls is the nation’s energy company Nigerian National Petroleum Corporation Limited (NNPCL), NIPCO and Independent Petroleum Marketers Association of Nigeria (IPMAN). NNPCL has on August 04, 2023 in a recent press release made available through the Chief Corporate Communications Officer, Garba Deen Muhammad, stated that the company is currently in partnership with NIPCO for an establishment of Compressed Natural Gas (CNG) stations at the strategic locations in Nigeria.

“As part of the Nigerian National Petroleum Company (NNPC) Limited’s commitment to providing cheaper alternative fuel to motorists, the company is happy to announce a strategic partnership with NIPCO Gas Limited to deploy Compressed Natural Gas (CNG) stations across the country. This landmark collaboration aims to expand our CNG infrastructure, improve access to CNG, and accelerate the adoption of cheaper and cleaner alternative fuel for buses, cars and Keke NAPEP, which will significantly reduce the cost of transportation and engender sustainable national economic growth.

“Under the NNPC-NIPCO strategic partnership, 35 state-of-the-art CNG stations will be constructed nationwide, including three (3) Mother stations. Once fully operational, the stations can service over 200,000 vehicles daily, thereby significantly reducing the cost of automobile fuel for Nigerians and the cost of transportation. The project will be rolled out in phases. The first phase, comprising 21 CNG stations, will support intra-city transportation and be ready by the first quarter of 2024; while the second phase, comprising 35 CNG stations, will support inter-city transportation and will be ready by late 2024. This will be further complemented by an additional 56 stations to be deployed by NNPC Retail across the country,” the statement read.

According to the press release, NIPCO Gas Limited is currently operating 14 CNG stations across Nigeria and has converted over 7,000 vehicles to run on CNG. NIPCO’s technical competency and field experience will bolster this initiative’s success and amplify its positive impact on the Nation’s economy. This initiative will leverage Nigeria’s abundant natural gas resources to bring multiple benefits to Nigerians, including access to cheaper fuel, reduced cost of transportation, reduced carbon emissions, create new business value chains and streams of job opportunities.

 However, the corporation has urged more private sector participation by oil marketing companies to broaden CNG penetration and availability. NNPC Limited has remaind committed to reliably delivering energy while continuously creating value for Nigeria’s prosperous future alongside our partners.

In the same vein, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has in its recent media address called on the present administration of Bola Tinubu to adopt efficient and proactive measures to see that the people of Nigeria are not facing the current economic reality being posed by the hike in fuel pump unattended to without creating ways of cushioning the ripple adverse effect of the hike.

The association through its Chairman Mr. Chinedu Anyaso during a media interaction with News AGENCY of Nigeria in Awka proffered solution to government through the establishment of Compressed Natural Gas (CNG) across strategic locations in the country.  Mr. Chinedu in his media address stated the importance of the IPMAN in the pursuit of this agenda owing to the evenly and wider spread of the association across the nation which is an advantage for wider outreach to the users especially the transporters.

“IPMAN welcomes the desire of the Federal Government to find an alternative to Premium Motor Spirit, whose price has skyrocketed with attendant inflation and a slowdown of the economy. I want to call on the Federal Government to use the existing downstream infrastructure IPMAN already has on the ground with over 21 depots and thousands of outlets across Nigeria, and we have the space,” Mr. Chinedu IPMAN Chairman said.

“Using independent marketers as a channel will quicken the distribution process more than looking for fresh vendors. All it requires is the proper funding and training for members. The government should work with IPMAN depot leaders who have the statistics of members and their capacities; this will help to drive the policy and bridge the energy gap we have now,” He said.

Compressed Natural Gas is seen by energy experts as a cleaner and cheaper source of fuel and equally atmospheric friendly owing to its low carbon emission level to the global space. The currently seeking economic ways in bringing these abundant natural resources to higher economic value to country by reducing the level of flaring of her gas to the atmosphere. Nigeria is estimated to harbor about 200 trillion SCF of natural gas and significant percentage of this figure is being flared at various oil platforms owing to lack of infrastructure such pipeline facility to transport this essential commodity to points of usage.