The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has revealed President Bola Tinubu’s plans to convert fuel stations into Compressed Natural Gas (CNG) outlets to provide Nigerians with an affordable alternative to petrol.

In a statement on Wednesday, while addressing State House correspondents after the Federal Executive Council (FEC) meeting, Ekpo confirmed that the President intends to expand the use of CNG across the country.

The minister emphasized that CNG is here to stay and urged Nigerians to embrace the initiative, adding that it is safe, cheaper, and environmentally friendly.

He said, “We are well aware that the President set up a Presidential Committee on the CNG to drive the CNG project. It is left for us to inform the general public that CNG has come to stay, and we have to follow that route because CNG is safe, cheaper, and protects the environment.

“It is important to note that when you are using CNG, you save a lot of money, a litre of fuel can go for N1000, but you get CNG at N200 per litre, which saves you N800.

“With the passion of Mr President, the push that he has given to us, we’ll try to drive the CNG programme to reach the nooks and crannies of this country.

“We have to take advantage of the natural resources, gas, that God has endowed us with.

“What we produce in our country is more than enough for us to use for CNG; and of course, you know, we are exporting to so many other countries.”

The Federal Government has rolled out plans to ban the export of locally produced Liquefied Petroleum Gas (LPG), commonly known as cooking gas from November 1, 2024.

The export ban was announced by the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo through a statement by his spokesman, Louis Ibah, in Abuja on Tuesday.

According to the statement, the ban is a move by the Nigerian government to increase local production and supply which will help tackle the high gas price in the country.

The latest development comes after the Managing Director/Chief Executive Officer of the Nigerian Independent Petroleum Company (NIPCO) Plc, Suresh Kumar called out the Federal Government over the soaring price of cooking gas in the country.

Investors King reported that Kumar, at the recently concluded National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers 2024, held in Lagos, urged the Federal Government to encourage Dangote Refinery and other domestic refineries to produce LPG to help lower the soaring price.

Kumar decried the high rate of gas importation noting that over 60 percent of the cooking gas consumed in Nigeria is imported.

According to him, this reliance on importation is a major factor behind the high price of gas.

Kumar acknowledged that support for local refineries would boost cooking gas production and reduce LPG importation.

Speaking on the development, Ekpo announced the ban on the importation of cooking gas.

According to him, the ban which will take effect from November 1 was confirmed after a meeting with stakeholders in attempt to address the soaring price of gas.

Ekpo revealed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been given a 90-day ultimatum to engage with stakeholders and reach an agreement on the pricing of the product.

The Minister warned that Nigerians would continue to pay higher prices for gas if the country persists in indexing its prices against external markets.

He said, “With effect from November 1, 2024, NNPCL and LPG producers are to stop exporting LPG produced in-country or import equivalent volumes of LPG exported at cost-reflective prices.”

“Pricing Framework: NMDPRA will engage stakeholders to create a domestic LPG pricing framework within 90 days, indexing price to cost of in-country production, rather than the current practice of indexing against external markets, such as the Americas and Far East Asia, whereas the commodity is produced in-country and the Nigerian people are required to pay much higher price for an essential commodity the country is naturally endowed with.”

To cushion the effect of this ban, the FG promised to build more facilities to blend, store, and deliver LPG.

Dangote Refinery has denied reports of filing a lawsuit against the Nigerian National Petroleum Corporation Limited (NNPCL), Aym Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited and Matrix Petroleum Services Limited, as widely reported.

Dangote made this known in a statement published via its official X handle on Monday.

A viral report alleging that Dangote filed a suit against the NNPCL and five other companies over the importation of petroleum products emerged online sparking a huge controversy.

Reacting to the viral report, the Group Chief Branding and Communications Officer of Dangote Group, Anthony Chiejina, via the statement denied any legal battle with the NNPC.

According to Dangote, the alleged report was an old one and would be fully and formally withdrawn when the matter comes up in court next year.

Dangote revealed that after the president’s directive, they have been in discussions with all parties involved.

Dismissing that no party has been served with court notice, Dangote emphasized that the discussions have made significant headway and there were no intentions of going to court.

The statement read, “This is an old issue that started in June and culminated in a matter being filed on September 6, 2024.

“Currently, the parties are in discussion since President Bola Tinubu’s directive on Crude Oil and Refined products sales in Naira Initiative, which was approved by the Federal Executive Council (FEC).

“We have made tremendous progress in that regard and events have overtaken this development. No party has been served with court processes and there is no intention of doing so. We have agreed to put a halt to the proceedings.

“It is important to stress that no orders have been made and there are no adverse effects on any party. We understand that once the matter comes up January 2025, we would be in a position to formally withdraw the matter in court.”

Investors King reported that following Dangote’s failure to meet petroleum demand by marketers in the country, the oil dealers returned to their former mode of buying the product outside the country and shipping them into Nigeria for sale.

According to the marketers, the move was an effort to save the country from fuel scarcity which Dangote’s inability to meet the supply demand may push the country into.