The Federal Government’s Compressed Natural Gas (CNG) initiative has attracted $175 million in private sector investments over the past year, according to Minister of Information and National Orientation, Mohammed Idris.
This initiative, aimed at reducing transport costs and promoting cleaner energy, has seen a significant rise in CNG conversion centers, expanding from just seven to 125 in one year.
The CNG initiative, part of Nigeria’s energy transition, is expected to lower transportation costs by over 60%, offering a cheaper and more environmentally friendly alternative to petrol and diesel.
This effort aligns with Nigeria’s strategy to capitalize on its abundant gas resources. Additionally, the commencement of petrol production at the Dangote Refinery is bolstering Nigeria’s energy independence, with payments for crude oil supplies to the refinery now made in Naira.
In a broader effort to manage rising costs, the government has also introduced the Presidential Gas for Growth Initiative, implementing a zero-percent VAT on gas and related equipment.
To address high prices of essential goods, President Tinubu has approved the temporary removal of import duties and taxes on specific food items and pharmaceutical materials.
While these measures are designed to alleviate financial pressures, Idris urged patience as their full impact takes time to materialize.
(The Nation)