The Federal Government of Nigeria has shed more light on the importance of Compressed Natural Gas (CNG) to economic development, stressing that every 1,000,000 vehicles converted to CNG will save the country about $2.5bn.
Mr Michael Oluwagbemi who is the Programme Director of the Presidential Initiative on Compressed Natural Gas, Pi-CNG, said the push for CNG by the Federal Government would end the era of pollution, environmental degradation and economic hardship.
Oluwagbemi spoke during a one-day South South and Southeast stakeholders’ engagement meeting in Port Harcourt, Rivers State.
He said the natural gas was in abundance in the nation, but people lacked the foresight to utilise it insisting that CNG is cleaner, cheaper and will reduce the cost of transportation.
He said: “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 waste. Nigeria is the second largest waster of oil and gas. We exploit it and waste it then continue to suffer poverty.
“The President has set us on natural gas feature and set up on 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 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.”
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Oluwagbemi said that the nation stood to benefit with the energy transition, adding that CNG remained more reliable for the transportation sector of the country.
He said CNG had the capacity to reduce the current inflation troubling the nation’s economy.
He said: “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 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 realise between 40% to 50% savings from patrol. This is good for Nigeria and it is safer. It is 18 times safer than our petrol and diesel. IT is cleaner and safer for the environment.
“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 reduction in the cost of transportation. Our jobs is to give incentivise 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 conversations centres.
When we convert our vehicles, 1,000,000 vehicles they will convert it save 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.