The Minister of Finance and Coordinating Minister of the
Economy of Nigeria, Wale Edun, has said due to the price of Compressed Natural
Gas (CNG) and Premium Motor Spirit (Petrol), the former should be prioritized
by Nigerians.
Edun disclosed this on Tuesday at the inauguration of the
Nigerian Banking Sector report by Afrinvest in Lagos.
The Minister, who was represented by Dr Armstrong Takang,
the Managing Director of the Ministry of Finance Incorporated (MoFI), explained
that increased adoption of CNG in the country will reduce the cost of
production for businesses and households.
According to him, the country and private sector players
must ramp up investments towards the Federal Government’s CNG plan.
“I do not know if you have been watching the campaign on
substituting premium motor spirit (PMS) for CNG. It is an early step that we
are taking. When you look at the price of CNG versus PMS, it ranges from half
of it, and sometimes, it comes down to a quarter of what it costs to run on
PMS.
“We believe that given that we are a gas nation and gas is
cleaner than PMS, if we aggressively move in that direction, it can have a
significant impact on the cost of not only fueling our vehicles, but mass
transit, as well as factories that run on fuel and diesel”, he said.
Recall that in August this year, President Bola Ahmed Tinubu
approved establishing the Presidential Compressed Natural Gas Initiative
(PCNGI) to facilitate nationwide adoption.
The government said CNG is a cheaper alternative (N213 per
standard cubic meter as of August 2023) to petrol, which goes for over N600/per
litre after subsidy removal in June.
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