Govt policies unfavourable to vehicular gas, says NIPCO boss
Obasanjo urges Buhari to revisit policy
Ten years after former president Olusegun Obasanjo approved the construction of Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) vehicular fuel stations across the country, the Managing Director of Nigerian Independent Petroleum Company (NIPCO) Plc, Venkataraman Venkatapathy, said government policies were not encouraging the scheme.
Venkatapathy, speaking during an official visit of the management of NIPCO to the former president’s Presidential Hiltop home in Abeokuta yesterday, however, expressed optimism that Chief Obasanjo could help them to persuade the necessary authorities to further initiate policies that would promote vehicular gas in Nigeria.
According to the NIPCO boss, CNG is a superior auto fuel alternative to liquids fuels mainly petrol and diesel designed specifically for countries like Nigeria which is blessed with over 186 trillion cubic feet of gas which remains highly untapped.
Venkatapathy said the company is still facing serious challenges of promoting CNG because of lack of commitment by government.
Surprised that the project was still undeveloped, Obasanjo expressing dismay and said especially against the backdrop of the volatility of crude oil price in the international market, which has reduced federal revenue, there is need for the present administration of President Muhammadu Buhari to fully optimise the usage of CNG and LPG as vehicular fuel to save it from huge fuel importation.
Obasanjo had in 2016 approved CNG projects to three private firms (NIPCO, Contec Global and Global Steel) during his tenure, but was worried seeing that only the NIPCO implemented the project, and it is still facing policy gridlock.