Commodities

Nigeria Plans to Establish 9,000 Autogas Filling Stations

Published

1 year ago

August 29, 2023

The Federal Government has unveiled its ambitious plan to establish 9,000 autogas filling stations across the nation within the next six months.

This transformative initiative is a pivotal component of the National Gas Expansion Programme (NGEP), designed to harness Nigeria’s abundant natural gas resources and revolutionize the country’s energy landscape.

Chairman of the NGEP, Dr. Mohammed Ibrahim, made this announcement during the Annual Training Workshop of the Nigeria Auto Journalists Association (NAJA).

The workshop’s theme, “Fuel Subsidy Removal: Autogas/Electric Vehicles as Alternatives,” underscored the significance of this bold energy transition.

The NGEP, conceived to unlock the full potential of Nigeria’s natural gas reserves, promises to usher in a new era of sustainable energy. Dr. Ibrahim passionately argued that autogas, especially in the wake of fuel subsidy removal, was the cost-effective and environmentally friendly choice for vehicles.

He confidently asserted that the administration’s pledge to create 100 million jobs was not only realistic but could be expedited through the NGEP.

The program introduces a multi-fuel scheme allowing vehicle owners to fill their tanks with either liquefied natural gas (LNG) or compressed natural gas (CNG) in addition to the traditional premium motor spirit.

According to Dr. Ibrahim, approximately 5 million conversion kits will be required to adapt 30 million internal combustion engine (ICE) vehicles to CNG or LNG. This monumental shift in the automotive sector has the potential to generate a staggering 12.5 million jobs, providing a significant boost to the economy.

He emphasized that if executed meticulously, autogas could be the catalyst for economic resurgence.

Explaining the NGEP’s multi-fuel scheme, Dr. Ibrahim said, “When you visit a filling station, you’ll find dispensing facilities for petrol, diesel, and kerosene. Additionally, you’ll have access to dispensing facilities equipped with cryogenic towers for LNG, CNG dispensing pumps, and charging points for electric vehicles. This creates a one-stop-shop for multiple fuel options, catering to the diverse needs of vehicle owners.”

Also, he highlighted the system’s adaptability, saying, “You won’t even need a separate CNG facility because, with a cryogenic tower, you can generate CNG from your LNG right at the station by simply adding a pump.”

However, despite the NGEP’s enormous potential, its 250-billion-naira fund, held in the Central Bank of Nigeria for the past four years, has remained untapped. Dr. Ibrahim expressed frustration over the stringent conditions attached to the fund and noted that calls to relax these conditions, made during the tenure of former CBN Governor Godwin Emefiele, went unheeded, rendering it inaccessible to companies involved in the autogas value chain.

As Nigeria stands on the precipice of a monumental energy transformation, the NGEP’s audacious plan to establish 9,000 autogas filling stations has the potential to reshape the nation’s economic and environmental landscape. If executed successfully, this initiative could herald a cleaner, more sustainable energy future for Nigeria while creating millions of jobs and fostering economic growth.

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Commodities

Cooking Gas Prices Surge Amidst Import Reliance, NIPCO CEO Calls for Local Refinery Support

Published

7 days ago

October 15, 2024

Yetunde Olugbenga

Just like the surge in fuel pump prices, the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has increased.

The Managing Director/Chief Executive Officer of the Nigerian Independent Petroleum Company (NIPCO) Plc, Suresh Kumar, has urged the Federal Government to encourage Dangote Refinery and other domestic refineries to produce LPG to help lower the soaring price of cooking gas.

According to experts, the increase in cooking gas prices was due to insufficient local production.

Meanwhile, at the recently concluded National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers 2024, held in Lagos, Kumar revealed that over 60 percent of the cooking gas consumed in Nigeria is imported, which is a major factor behind the price hike.

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

“There is hope that reliance on imported LPG will decrease, which will positively influence domestic prices. Greater local production will make LPG more affordable since it reduces exposure to foreign exchange fluctuations and international pricing dynamics,” he stated.

Kumar further noted that the Federal Government should provide financial aid by investing in local refineries to accelerate LPG production, meet public demand with adequate supply, and reduce costs.

“We must work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other stakeholders to end gas flaring in the country. Substantial investments are needed to capture and process flared gas to increase domestic supply beyond the current 1.5 million MT to at least 5 million MT annually,” he reiterated.

As of the time of this report, Investors King gathered that in the Osogbo area of Osun State, the price has risen from N1,400 to N1,500. In Ilorin, Kwara State, it is currently being sold for N1,500.

Meanwhile, in Lagos State, the current price is N1,400, compared to the previous price of N1,300.

Commodities

Federal Government Expands Subsidized Rice Program to Lagos, Kano, and Borno

Published

3 weeks ago

October 2, 2024

Bassey Marshall

The Federal Government has announced that Lagos, Kano, and Borno will be the next states that will benefit from its subsidized rice program aimed at addressing economic hardship in the country.

The initiative aims to sell a 50kg bag of rice for ₦40,000.

According to a director at the Federal Ministry of Agriculture and Food Security, plans are already underway to roll out the food subsidy program in these states.

Investors King learned that since the launch of the subsidized rice program in September, only civil servants in Abuja, the Federal Capital Territory (FCT), have benefited from it.

However, the director revealed that the government is ready for the next phase of the program, which will help address growing food insecurity in Nigeria.

The source disclosed that the next phase, set to begin shortly, is part of a broader strategy by President Tinubu’s administration to ensure that no Nigerian goes to bed hungry.

The official also dismissed reports that the sale of subsidized rice has been suspended in Abuja, clarifying that the intervention is still in its early stages.

According to him, while the ministry is actively coordinating with other states, sales are ongoing in Abuja.

“As I speak to you now, we are about to activate sales in Lagos and Kano states, with Borno State also set to be addressed,” the agriculture ministry official stated.

“We’ve barely started; how can we stop? Sales are ongoing, and we are actively engaging with other states,” he added.

Commodities

Osun Government Seals Off Gold Mining Company For Allegedly Evading Tax

Published

3 weeks ago

September 30, 2024

Ugwoke Ogbodo

The Osun State Government said it has sealed up the business premises of Segilola Resources Operating Limited over alleged tax evasion.

A statement by the state Commissioner for Information and Public Enlightenment, Kolapo Alimi, on Monday, said the action followed a court order permitting the state to seal the company for “various flagrant tax violations and failure to disclose fully the employees directly and indirectly involved in its business activities, obstruction of tax processes by failing to provide timely tax information and documents.”

“Segilola Resources Operating Limited is one of the major companies carrying out mining activities and mineral exploration in the State as a subsidiary of Thors Explorations Limited listed on London and Toronto Stock Exchanges.

“After a series of demands, meetings, consultations, and engagements, the company still remained adamant and remorseless in its tax evasion and other violations. The Attorney-General of Osun State approached the court and consequently obtained an Order of the Court to seal up the Company until the due sum calculated from 2019 to 2023 is fully liquidated into the Osun State Government Account.

“The state notes with regret that while some companies make billions of naira in the state, especially in the mining sector, they are not ready to give the state its lawful dues.

“While the issue of shareholding values due to the acquisition of Osun state interest in Tropical Mines is purely commercial, we will continue to hold the company responsible for all its actions,” he said.

Recall that the gold mining company, in a statement by its Country Manager, Austin Menegbo, had denied the allegations by the state government, claiming that it has consistently demonstrated a commitment to being a law-abiding, transparent corporate entity, fulfilling all tax obligations and royalty payments in full and on time.