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Nigerian government mandates CNG pumps at fuel stations nationwide

Move aims to bolster consumer accessibility to Compressed Natural Gas and reduce dependency on petrol, as part of broader energy diversification efforts.

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In a bid to enhance consumer access to Compressed Natural Gas (CNG) and alleviate the nation’s reliance on traditional petrol-based fuels, the Nigerian government has announced plans to mandate the installation of CNG pumps at filling stations across the country.

The directive, unveiled by Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, underscores a strategic shift towards alternative energy sources amidst ongoing concerns over petroleum product scarcity and sustainability.

Ahmed revealed the government’s intention during a meeting with key oil marketing companies in Abuja, emphasizing the imperative of diversifying the nation’s energy portfolio to mitigate economic burdens associated with petrol imports and exchange rate fluctuations.

Under the new policy framework, prospective retail licensees seeking government approval will be required to establish CNG points at their filling stations as a prerequisite for licensing, marking a pivotal step towards integrating cleaner, more cost-effective energy solutions into the nation’s fuel infrastructure.

Addressing stakeholders, Ahmed underscored the urgency of embracing CNG as a viable alternative to petrol, citing President Bola Tinubu’s directive to prioritize CNG-powered vehicles for government fleets as a pivotal impetus for market adoption.

The government’s push to promote CNG adoption represents a paradigm shift in energy policy, leveraging Nigeria’s abundant gas reserves estimated at over 200 trillion cubic feet to bolster domestic energy security and drive economic growth.

Ahmed emphasized the need for collaborative efforts among industry stakeholders to ensure the seamless integration of CNG infrastructure into existing petrol stations, underscoring the pivotal role of public-private partnerships in facilitating energy transition initiatives.

In addition to the CNG mandate, Ahmed outlined plans to incentivize solar energy adoption among fuel retailers to mitigate diesel consumption and reduce environmental impact, signaling a broader commitment to sustainable energy practices.

The government’s proactive stance on energy diversification reflects a concerted effort to address longstanding challenges in Nigeria’s fuel sector, laying the groundwork for a more resilient and environmentally sustainable energy landscape.

As the nation navigates the transition towards cleaner energy sources, stakeholders remain optimistic about the transformative potential of CNG infrastructure, heralding a new era of energy innovation and economic resilience.

Amidst ongoing efforts to bolster domestic refining capacity, including the imminent commissioning of the Dangote Refinery, Nigeria stands poised to chart a path towards energy self-sufficiency and economic prosperity, anchored on the principles of innovation, sustainability, and inclusive growth.

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