The Enugu State government has announced plans to establish a new ministry to oversee the Compressed Natural Gas (CNG) buses set to launch in the state.

The latest development, aimed at achieving affordable transportation in the state, was made known by the Secretary to the State Government, Prof. Chidiebere Onyia, and the Commissioner for Transportation, Dr. Obi Ozor, after a meeting of the State Executive Council on Saturday.

Onyia, who cited the newly signed Enugu State Electricity Law by Governor Peter Mbah, revealed that a new ministry would be created to handle all “our engagements in the energy space and also in our mineral resource space.”

Investors King gathered that the newly created ministry named the Ministry of Energy and Mineral Resources will oversee the energy and mineral investment.

Onyia noted that the new ministry would take effect immediately.

He said, “EXCO today, to now create this Ministry, and the mandate includes oversight of most of our investment opportunities within the solid mineral space and also to help catalyse investments in the energy space.

“EXCO resolved that this new Ministry would take effect immediately.”

Speaking further on the development, Dr Ozor echoed the importance of moving from petrol to CNG buses.

According to him, the move will save half of the cost of fuel, thereby reducing the cost of transportation for residents of the state.

“The Executive Council resolved that it is very important for the state and her citizens to begin the process of transitioning from petrol to CNG, which saves about half of the cost of fuel for our transportation, thereby reducing the cost of transportation for our people.

“All these are geared towards bringing safe and affordable and sustainable transportation system. This ties into the infrastructure that is underway – the bus terminals, improved bus shelters, the internet of things and gadgets in these buses that will allow us to be able to know where our citizens are and make sure that they are safe from any incident.

“The state is also creating an enabling environment to attract the right investors within the CNG space, and the state has already done that in partnership with Greenville Energy,” he stated.

The House of Representatives has urged the President Tinubu-led government to end the reign of monopoly in the Nigerian oil sector and allow independent marketers to lift petrol directly from the Dangote Refinery.

The latest development follows concerns raised by Oboku Oforji, the member representing Yenagoa/Opokuma Federal Constituency, Bayelsa State.

Investors King gathered that while NNPCL was initially named as the sole off-taker of the refinery’s product, recent changes allowed Major Marketers access to PMS.

However, Oforji lamented the monopoly ravaging the country’s oil sector where only the NNPC and Major Marketers are allowed to lift petrol from the refinery.

According to Oforji, if the Federal Government fails to intervene, and stop the monopoly, Nigerians will continue to suffer the effects of fuel scarcity.

He warned that independent marketers have threatened to begin the importation of the product to sustain their business.

He said, “The House is worried that NNPCL and the major marketers are exclusive off-takers, which spells monopoly and is equivalent to greed. This is the same NNPCL that has failed to manage our crude and refineries for decades.

“If this monopoly is not nipped in the bud, the suffering of Nigerians caused by the scarcity of PMS will continue, and we all know the implications for the economy.

“No wonder the late MKO Abiola of blessed memory, in a viral video some years ago, lamented that the NNPCL lacks transparency and accountability.

“The House is disturbed that allowing the NNPCL and major marketers to lift Premium Motor Spirit from the refinery to the exclusion of independent marketers is not good enough.”

“IPMAN representatives have expressed fears that they may be forced to resort to fuel imports to sustain their businesses,” he added.

Oforji thanked Dangote Refinery for helping the country meet the increasing demand of petrol.

According to him, with the refinery, Nigeria’s Gross Domestic Product will experience a steady increase.

His words, “The House notes that by this achievement, Nigeria is driving towards energy self-sufficiency, cost and foreign exchange savings, meeting the increasing demand for fuels, and attracting foreign capital investment. The generation of foreign exchange through the export of finished products, conservation of foreign exchange, and significant value addition will contribute to an increase in Nigeria’s Gross Domestic Product.

“The House further notes that given the high demand by millions of Nigerians for PMS and the ordeal they go through to obtain it, NNPCL should allow independent marketers to lift the product from the Dangote refinery,” he added.

If the prevailing monopoly is not nipped in the bud, Oforji noted that the suffering of Nigerians caused by the scarcity of PMS will continue with disastrous consequences for the economy, and we all know the implications,” he noted.

Despite the production of Premium Motor Spirit, popularly known as petrol by Dangote Refinery, a fresh round of scarcity of the product has hit some parts of the country.

Earlier, Investors King had reported that independent marketers had declared that they would shun Dangote refined fuel for foreign products because they are unable to purchase petrol directly from Dangote Refinery.

To this end, many of the filling stations operated by independent marketers have shut down their facilities, thus creating queues in a few of the stations that are selling petrol.

Scores of motorists and other citizens have been experiencing difficulties purchasing PMS. The situation has also created a lucrative environment for black marketers to make exorbitant profits.

One of the affected states is the Federal Capital Territory (FCT), leaving motorists spending hours to buy petrol.

Findings showed that many filling stations in Abuja did not open, while there were long queues at the few stations that dispensed the product, particularly those operated by the Nigerian National Petroleum Company Limited (NNPCL) and some major oil marketers.

Outlets such as the NNPC mega station on the Katampe axis of the Zuba-Kubwa Expressway, AP station along Aguiyi Ironsi Street in the city centre, and NIPCO filling station also along the Zuba-Kubwa expressway, among others, had massive queues.

Meanwhile, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has clarified inability of independent marketers to buy directly from Dangote Refinery.

Addressing a media briefing in Lagos, PENGASSAN president, Festas Osifo, explained that the issue stems from a pricing disparity between the costs at which the NNPCL buys PMS and the prices it sells to independent marketers.

Osifo explained that NNPC may purchase PMS at approximately N950, but sell it to independent marketers at around N700, leading to a significant shortfall that NNPC manages.

He said major marketers would buy directly from Dangote at a price similar to NNPCL’s purchase but would need to sell it at a higher price, potentially over N1,000.

He said independent marketers prefer to purchase from NNPCL to take advantage of the lower prices but noted that some crude oil has been tied to loan repayments, limiting the available supply for local consumption.