Tinubu applauds NIPCO’s investments in CNG

The Federal Government has suspended exports of local cooking gas, known as Liquefied Petroleum Gas (LPG), to stabilise domestic supply and curb the rising prices of cooking gas across the country.

The directive, which will take effect on November 1, aims to address the growing concerns over the affordability of LPG.

Also, President Bola Tinubu, during a meeting with the executives of NIPCO at the Presidential Villa, Abuja, applauded the firm for investing in Nigeria’s Compressed Natural Gas (CNG) sector.

Announcing the suspension, yesterday, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, expressed deep concern over the continuous increase in the price of cooking gas in the country.

To tackle the soaring price of cooking gas, the minister had, in November 2023, established a high-level committee of key stakeholders in the LPG value chain led by the Chief Executive of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed.

Despite the effort, prices have continued to fluctuate, recently soaring to N1,500 from an average of N1,100 to N1,250 per kilogramme.

In a statement by the Minister’s Spokesman, Louis Ibah, the minister, on a short-term solution, directed that with effect from November 1, 2024, Nigerian National Petroleum Company Limited (NNPCL) and LPG producers would stop exporting LPG produced in-country, or import equivalent volumes of LPG exported at cost-reflective prices.

Regarding the pricing framework, the minister instructed NMDPRA to consult with stakeholders to develop a domestic LPG pricing system within 90 days. This new system will tie prices to local production costs instead of the existing method that relies on international markets like those in the Americas and Far East Asia.

This shift, according to him, aims to address the discrepancy where Nigerians pay significantly higher prices for a vital commodity the country produces.

On long-term solution, he said: “Within 12 months, facilities will be developed to blend, store and deliver LPG, ending exports until the market achieves sufficiency and price stability.

“The new measures aim to improve availability and ensure affordability to protect Nigerians from the economic hardship caused by LPG price hike.”

TINUBU, who emphasised the importance of Public-Private Partnerships (PPPs) in driving the transition to cleaner and more affordable energy solutions for Nigerians, commended NIPCO’s contributions to the nation’s energy transition efforts, particularly its support for the Presidential Compressed Natural Gas Initiative (PCNGI).

During the meeting at the State House, the President acknowledged NIPCO’s role as a critical player in enhancing the adoption of CNG as an alternative fuel, noting that such investments align with his administration’s energy security and economic diversification strategy.

CNG, being a cleaner and more affordable fuel, reduces the carbon footprint and saves consumers significant fuel costs.

“Nigeria’s motorists can buy petrol at N1,000 per litre or equivalent gas per Standard Cubic Metre at N200. We have also introduced incentives for commercial motorists to convert from petrol to gas ‘free of cost’,” Tinubu said.

NIPCO director, Ramesh Kasangra, who led the delegation, commended Tinubu for his steadfast support of the CNG sector.

He expressed NIPCO’s commitment to furthering the partnership with the government to ensure Nigeria’s energy transition remains on track.