How in-coming govt can tackle fuel subsidy burden – NIPCO
President-elect Bola Tinubu has declared plans to end fuel subsidy. CNG pioneer, NIPCO, has these pieces of advice on how this could be a win-win for both the government and the people
Deepened utilization of indigenous natural gas will certainly help the federal government in reducing subsidy burden and reduced importation of other fossil fuels, there by saving towards exchequer.
Mr. Suresh Kumar, Managing Director,
NIPCO Plc, the CNG pioneer in Nigeria, said this after a tour of the company’s facilities in Apapa by journalists on Thursday.
President-elect Bola Tinubu has declared plans to end subsidy, CNG pioneer, NIPCO, has these pieces of advise on the burden could be lessened.
Fielding questions from newsmen, Kumar, who addressed journalists with MD NIPCO Gas, Nagendra Verma, maintained that his company has deepened gas investment and market leadership in the country.
“With the intentions of the federal government to do away with fuel subsidy, natural gas by CNG and AutoCNG are bound to be a preferred “fuel of choice” due to safety, environment, economic and abundant availability reasons in Nigeria,” he said.
NIPCO Gas has, according to Kumar. “total belief and expectation in the federal government’s declaration of 2020-2030 as a “Decade of Gas” with an aim to target gas-powered economy of Nigeria by year 2030 bundled with Nigeria Gas Expansion Program (NGEP) will certainly improve the utilization of
Indigenous fuel viz. natural gas and play a major role in improving Nigeria’s economy.”
He continued; “NIPCO Gas feels that increases monetisation of indigenous natural gas will surely contribute heavily to the betterment of economic situation and employment in Nigeria.”
The NIPCO boss added that the number of vehicles running on Compressed Natural Gas (CNG) In Nigera has Hit 7,000.
“We started our CNG operations in 2009 in Benin City by providing natural gas to Industries by way of PNG & CNG to automobiles by way of AutoGas (AutoCNG). NIPCO Gas is the pioneer company in CNG distribution in Nigeria.
“Presently, Nipco Gas operates 12 CNG stations in Edo, Kogi, Delta, Ogun state, and Abuja. Four CNG stations are under various stages of construction and approval in Oyo, Lagos, Akwa Ibom state, and Abuja FCT.
These CNG stations cater for Auto Gas requirement of vehicles, providing a cleaner, safer, economical, proven, and indigenous fuel.
“Nipco Gas presently fuels 7000 vehicles with AutoCNG. Nipco Gas has 4 AutoCNG conversion workshops in
Ogun state and Abuja FCT to convert PMS vehicles on AutoCNG. More and more fleet operate converting their fleet on AutoCNG due to safety, availability, and economic reasons.
Corroborating Kumar’s view, Verma added; “NIPCO Gas operates approximately. 40 kilometres of pipeline network in Benin city and approximately 50 km pipeline network on Lagos lbadan expressway and energies industries for their power requirements by way of providing piped natural gas (PNG).
“PNG is most economical, safe, and convenient to use.
NIPCO Gas, in partnership with NNPC Gas Marketing Limited (NGML), is presently constructing approximately 80 kilometres of pipeline in phased manner from Sagamu to lbadan which will cater for industries’ power and fuel requirements.”
Pipeline construction work, he continued. “is progressing in full swing presently. The first phase of pipeline construction is expected to be completed by the end of 2023.
“NIPCO Gas, in partnership with NGML, is also constructing gas distribution infrastructure in Lekki Zone. Pipeline construction within Lekki Free Zone Development Company is on.
“The pipeline and city gate station are under construction. Nipco Gas has planned to commission the gas infrastructure and start supplying natural gas to customers in Q2, 2024.”
