Nigerian Oil Marketers Secure Funding to Develop 30,000 Gas Stations Amid Fuel Subsidy Removal
Nigerian oil marketers have received approval from both domestic and international financiers to establish approximately 30,000 gas stations across the country. Many of these stations are already being converted to dispense gas as part of the government’s initiative to deploy 11,000 Compressed Natural Gas (CNG) vehicles, aimed at mitigating the impact of fuel subsidy removal.
Chinedu Okonkwo, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), provided an update on the progress of this project. He mentioned that the project’s financiers have been responding positively, indicating their support.
Earlier this year, oil marketers had written to the Federal Government proposing the construction of 30,000 gas stations to alleviate the effects of removing fuel subsidies. They also requested that the Central Bank of Nigeria release a N250 billion intervention fund for the National Gas Expansion Programme as loans for vehicle owners to acquire gas conversion kits.
IPMAN’s collaboration with Gas Analytics & Solutions Ltd involves co-locating natural gas dispensers at their extensive network of over 30,000 filling stations in Nigeria. This partnership aims to facilitate the nationwide rollout of Compressed Natural Gas (CNG) for vehicles.
Okonkwo emphasized the cost-saving benefits of using CNG, stating that it significantly reduces the financial burden of fueling vehicles. He noted that the cost of covering a particular distance using CNG is substantially lower compared to using Premium Motor Spirit (PMS), commonly known as petrol.
Okonkwo refrained from disclosing the specific amount being sought from the financiers for the gas station development, citing the confidentiality of business plans. He indicated that both international and local financiers are involved in the project, and the conversion process for filling stations is currently underway.
The Nigerian government has shown interest in promoting the use of autogas (CNG), with plans to provide 11,000 CNG vehicles. This commitment is reflected in the establishment of a presidential committee focused on CNG utilization, raising optimism among marketers that they will receive the necessary support from the government.