CNG Initiative Spurs $175M Investment, Naira Deal Unveiled

FG confirms Dangote will pay for crude oil supply in naira starting this month.

The federal government stated that the presidential Compress Natural Gas initiative has resulted in $175 million in private sector investments in key infrastructure over the last year.

Mohammed Idris, Nigeria’s Minister of Information and National Orientation, provided an update in a statement on X on Tuesday.

According to him, Nigeria currently has 125 conversion centers, up from only seven a year ago.

Idris further stated that the most significant advantage is that CNG is much cheaper than petrol and diesel, lowering the cost of transportation and commuting by more than 60%.

He stated, “One of the most pressing challenges in the country right now is the rising cost of transportation and commuting as a result of the elimination of gas subsidies.

“This has resulted in the launch and implementation of a national program to make Compressed Natural Gas (CNG) the preferred automobile fuel in Nigeria.

“It is also a cleaner, more environmentally friendly gasoline.

For a country as endowed with gas resources as Nigeria, CNG is a wise and welcome bet for the future.

“In the last year, the presidential CNG initiative has unlocked $175 million in private sector investments in critical infrastructure, and Nigeria now has 125 conversion centres, up from just seven a year ago.”

He commented about the Dangote Refinery’s start of petrol refining, adding that the development has changed Nigeria’s narrative from one of negativity to optimism.

“In September, the world’s largest single-train crude oil refinery began producing petrol for the Nigerian market, instantly rewriting the existing narrative of an oil producing country that is forced to depend exclusively on imported petrol.”

He also confirmed that Dangote Refinery would begin to pay for crude supplies in naira starting from this month.

“Starting this month, the Dangote Refinery will pay for crude oil supplies in Naira, in a welcome decision approved by President Tinubu to bring down the cost of locally produced petroleum products.

“Also, the new Presidential Gas for Growth Initiative is implementing a zero-percent VAT regime on a wide range of the sale of gas and gas-related equipment.

“In addition to transport costs, the Federal government is also targeting food and pharmaceuticals, to bring prices down.

“President Tinubu has approved the temporary removal of import duties and taxes on certain essential food items, as well as pharmaceutical raw materials and equipment.

We acknowledge that it will take some time for the effect of these actions to be felt in the market, and in the pockets of Nigerians, and we ask for patience and understanding as the implementation is fine-tuned.

“The results will certainly be felt, in no distant time. Initiatives like the Nigerian Education Loan Fund (NELFUND) and the Nigerian Consumer Credit Corporation (CrediCorp) are putting money in the pockets of students and workers respectively, enabling people to pursue their dreams of completing education, starting and growing businesses, advancing careers, and affording life’s necessities.

“At the end of the day, this is what matters the most to the people of Nigeria, and it is what we exist for as government: to make life better for all, ensuring no one is left behind.

There is something for everyone, and I encourage all Nigerians to actively seek out which of these many transformational initiatives and opportunities they may benefit from.

“Government exists to make life better, but this can only happen if people are aware of opportunities and eager to participate.

“Happy 64th Independence anniversary to the nation and people of Nigeria!”