…As MEMAN appreciates government’s new fiscal incentive under VAT Modification Order2024
The Managing Director/Chief Executive Officer of Eterna Plc, Abiola Lukman Lawal, has expressed that Nigeria’s abundant gas reserves offers immediate solutions to the nation’s energy challenges if well leveraged and managed.
This he called on Nigerians to adopt the use of Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) for transportation and cooking respectively. Stressing that gas is a viable and cost effective alternative which should be given proper awareness.
Mr. Lawal spoke during the second panel session titled— ‘Driving energy sufficiency in the downstream sector through CNG and LPG’ at the 2024 NAEC annual strategic international conference , hosted by the Association of Energy Correspondents of Nigeria (NAEC) at Eko hotel, Victoria Island, Lagos
The theme of the conference is Gas as Energy Transition Fuel: Navigating Nigeria’s Trilemma of Finance, Energy Security, and International Politics
Highlighting the benefits of CNG and LPG in the downstream sector, the oil magnate said that there will be reduction in greenhouse gas emissions. “Also, there will be cleaner combustion compared to traditional fuels, cost savings for consumers and businesses. This will create more jobs in the CNG and LPG supply chain.”
Speaking on the federal government’s efforts to ensure its circulation and accessibility, Lawal said Nigeria’s Decade of Gas Initiative, Presidential CNG Initiative (Pi-CNG) and Installation of CNG stations were launched for efficiency.
He said, “12 new CNG stations were commissioned in Lagos and Abuja in 2024. 35 new CNG stations across the various geopolitical zones planned.
“The Presidential CNG Initiative (PCNGi) was launched in 2023, aimed at alleviating the hardship of fuel price increase mostly in transportation (via buses). The Conversion Incentive Program to either provide free or heavily discounted car conversions.
“The Standard Organization of Nigeria has also introduced 80 standards covering aspects of CNG utilization, including production, storage, transportation, and appliance compatibility.
“The Decade of Gas initiative, launched in 2021, is focused on transforming Nigeria into a gas-powered economy by 2030 through a series of policy reforms, gas supply projects maturation, gas infrastructure expansion, capacity building and robust investment attraction strategies.”
Lawal noted that Nigeria’s energy sufficiency can be achieved through CNG and LPG if critical stakeholders collaboratively invest in the gas sector.
He further suggested, “large scale investment in gas infrastructure – $20billion is required annually. The Presidential CNG Initiative plans to raise over $350million for CNG infrastructure by 2027.
“$750 million required to develop LPG transport and retailing infrastructure.
Policy and regulatory reform to encourage private sector engagement and investment.
“Tax credits and rebates for purchasing CNG vehicles and converting existing vehicles to CNG. Grants and low-interest loans can encourage private investment in CNG and LPG infrastructure Champion consumer sensitization efforts to create awareness of CNG/ LPG as viable alternatives to oil.
“Educate the public about the environmental and economic benefits of CNG and LPG through media campaigns, workshops, and community programmes. Incorporate information about CNG vehicles and their benefits in driver education and training programmes to inform new drivers of CNG as a viable alternative to conventional fuels.”
Also speaking Adelanke Dayo-Adepoju, Major Energies Marketers Association of Nigeria (MEMAN ) gas and renewable Specialist who represented the Executive Secretary ,Clement Isong noted that association advocates for cleaner and more sustainable energy solutions through the promotion of natural gas (CNG & LPG), solar power and biofuels like ethanol. We also work closely with partners to encourage the adoption of renewable energy practices in Nigeria.
According to her MEMAN expressed its appreciation for the government’s new fiscal incentive under the VAT Modification Order 2024, which exempts vital energy products and infrastructure from VAT. These include Diesel, Feed Gas, LPG, CNG, Electric Vehicles, LNG infrastructure, and Clean Cooking Equipment, aligning with MEMAN’s advocacy for sustainable energy solutions.
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