By Emmanuella Anokam

The Nigeria Extractive Industries Transparency Initiative (NEITI) said out of a total mineral revenue of N6.40 trillion, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) accounted for the highest contribution of N2.71 trillion in 2020-2021.

NEITI in its latest Fiscal Allocation and Statutory Disbursement (FASD) report which covered the period 2020-2021, said NUPRC, formerly known as Department of Petroleum Resources (DPR’s) contribution represented 18.83 per cent of the total remittances.

Dr Orji Ogbonnaya Orji, Executive Secretary of NEITI, at the unveiling of the report on Thursday in Abuja said NUPRC was followed by the Federal Inland Revenue Service (FIRS), which contributed N2.13trillion or 14.81 per cent.

The News Agency of Nigeria (NAN|) reports that 2020-2021 NEITI’s FASD Report examined total extractive industries revenue remitted to the Federation Account, tracked allocation and disbursement from the account to statutory recipients, utilisation and funds application by beneficiaries.

Orji, while presenting the report said the Nigerian National Petroleum Company Limited (NNPC Ltd) contributed N1.55 trillion or 10.8 per cent while the least contribution was from the solid minerals with N13.33 billion, or 0.09 per cent.

“The report revealed that the contribution by the NNPC Ltd declined significantly by 56 per cent, along with the FIRS, whose contribution also dropped by 10 per cent.

“The decrease in the revenue remittances by both the NNPC and FIRS was attributed to the decrease in revenue generated from crude oil exports in 2021,” he said.

Similarly, Orji said non-mineral revenue of about N4.80 trillion (or 33.37 per cent of total remittances, increased by N3.86 billion from 2020 to 2021.

“The highest contribution of N2.69 trillion, or 18.71 per cent came from the Company Income Tax (CIT), followed with N2.025 trillion, or 14.08 per cent from the Nigeria Customs Service (NCS) and N85.25 billion, or 0.59 per cent from other tax sources.

“As the revenue from CIT in 2021 declined by 5.25 per cent from 2020, the revenue realised by the NCS in 2021 increased by 40.55 per cent while other taxes significantly recovered from a deficit in 2020 to a positive balance in 2021,” he said.

Orji said the remittances from royalty and other fee payments from DPR and MMSD (solid minerals) increased significantly by 84 per cent and 43 per cent, respectively for the corresponding years.

According to him, receipts from VAT, which increased significantly for the two years period, resulted in the remittance of ₦3.18 trillion or 22.1 per cent of total remittances to the Federation Account, while revenue generated by NCS increased by 41 per cent.

He further revealed that Federal Government, States and Local Governments shared ₦5.42 trillion mineral revenue during the period under review.

“In terms of disbursements to the three tiers of government, the report showed that while a total of about ₦5.42 trillion was distributed to the Federal, State and Local Governments for the period.

“A total of ₦859.66 billion was deducted as 13 per cent derivation and shared among the nine oil producing states after the deduction of excess petroleum profit tax (PPT) and Royalty.

“The nine oil-producing states include Abia, Akwa-Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers.

“A breakdown of the disbursements showed that while the Federal Government received about ₦2.80 trillion, the 36 state governments got ₦1.45 trillion, and the 774 Local Government Areas received a total of ₦1.17 trillion,’’ he said.

The executive secretary said the report noted 2021 as the year with the highest revenue distribution across board, with two per cent increase between 2020 and 2021. (NAN)(www.nannews.ng)

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Edited by Bashir Rabe Mani

By Emmanuella Anokam

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has provided insight into how the lingering Russia – Ukraine war impacted Nigerian crude oil inflows in the international oil market.

The NNPC Ltd., said this led to a dip in demand from the once-dependable Asian market at the onset of hostilities in the Eastern bloc.

Maryamu Idris, Executive Director, Crude and Condensate, NNPC Trading Limited made this known in a panel presentation at the Argus European Crude Conference in London.

Idris, in a statement on Thursday by Mr Femi Soneye, Chief Corporate Communications Officer, NNPC Ltd, said Nigeria’s crude export to India dwindled.

According to Idris, in addition to the substantial price shocks impacting commodity and energy prices globally, the conflict triggered a situation where India, a primary destination for Nigerian grades, increased its appetite for discounted Russian barrels.

This, she said was to the detriment of some Nigerian volumes.

“To illustrate the extent of this shift, Nigeria’s crude exports to India dwindled from approximately 250,000 barrels per day (bpd) in the six months preceding the February 2022 invasion of Ukraine to 194,000 in the subsequent six months afterwards.

“And so far, this year, only around 120,000 bpd of Nigerian crude volumes have made their way to India,” she said.
On the other hand, she said Nigerian crude flow to Europe had increased in a bid to fill supply gaps left by the ban on Russian crude.

She explained that six months before the war, 678,000 bpd of Nigerian crude grades went to Europe, compared to 710,000 bpd six months later and 730,000 bpd so far this year.

“This trend makes it evident that Nigerian grades are increasingly becoming a significant component in the post-war palette of European refiners.

“Several Nigerian distillate-rich grades have become a steady preference for many European refiners, given the absence of Russian Urals and diesel.

“Forcados Blend, Escravos Light, Bonga, and Egina appear to be the most popular, and our latest addition — Nembe Crude – fits well into this basket.

“This was a strong factor behind our choice of London and the Argus European Crude Conference as the most ideal launch hub for the grade,” Idris said.

Idris said Nigeria faced production challenges aggravated by COVID-19 pandemic, including reduced investment, supply chain disruptions, ageing oil fields and oil theft, contributing to production declines in the second half of 2022 and early 2023.

She, however, said that the challenges were fast becoming a thing of the past with the implementation of a new framework for the domestic petroleum industry (PIA 2021), rejuvenating business landscape and repositioning NNPC Ltd for a more commercial approach.

According to her, NNPC Limited has secured vital partnerships with notable financial institutions to promote upstream investments to restore and sustainably grow production capacity in the coming years.

“NNPC Limited is championing concerted efforts in partnership with host communities and private stakeholders to address the security and environmental challenges in the Niger Delta to further fortify production growth.

“We have already begun seeing significant progress on the rebound. In September 2023, Nigeria recorded its highest crude oil and condensate output in nearly two years, reaching 1.72 million barrels per day.

This, we believe, is just the beginning of our production rebound.

She affirmed that NNPC Limited was also increasing its participation in the downstream sector in line with a ‘wells-to-wheels’ approach, taking the country’s unique hydrocarbon molecules as close as possible to end-users.

The vehicle for this, she said, is the restructured NNPC Trading Company, focused on growing NNPC’s presence in the global market for crude, condensate, gas, and petroleum products.

The Argus Crude European Crude Conference Panel Session was held with the theme: “The Invisible Hand: How Are Shareholders and Asset Managers Meeting the Crude Industry? What Does This Mean for the Future of Crude in Europe?” (NAN)(www.nannews.ng)

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Edited by Rabiu Sani-Ali

By Desmond Ejibas

The Nigeria Liquefied Natural Gas Limited (NLNG), says the company has not increase the price of Liquefied Petroleum Gas (LPG).

Mr Andy Odeh, General Manager, External Relations and Sustainable Development, NLNG, dismissed the alleged report of the increase in a statement issued in Port Harcourt on Wednesday.

He said the company cannot be blamed for any current surge especially as NLNG has so far delivered over 380,000 metric tonnes of LPG to the domestic market.

He said “NLNG has noted media reports insinuating that a price hike by the company is responsible for the surge in the domestic LPG, commonly known as cooking gas.

“The reports insinuated a price hike by the company and predicted that scarcity looms as a consequence.

“NLNG dismisses these media reports as speculative and indicative of a fundamental misunderstanding of Nigeria’s intricate market dynamics.”

Odeh said the company has grown the nation’s domestic LPG market volume from 50,000 metric tonnes in 2007 to over 1.3 million metric tonnes of both domestic and imported LPG in 2023.

“NLNG currently delivers over 450,000 metric tonnes per annum of Butane – the main product in cooking gas – and has embarked on domestic propane supply to further grow the market.

“The company has committed its entire Butane and Propane production to the domestic market from 2023, accounting for approximately 40 per cent of the total market volume.

“Since the beginning of the year, NLNG has delivered over 380,000 metric tonnes of LPG using the company’s dedicated LPG vessel,” he added.

The NLNG general manager said the company remained committed to delivering domestic LPG to locations close to the market.

He said diversifying delivery points, starting with Lagos in 2023, would ensure competition among terminal owners resulting to reduction in consumer supply chain costs.

According to him, the company was making efforts to reach terminals in Warri and Calabar as soon as challenges limiting safe delivery of gas to other locations are achieved.

“The domestic LPG market like any other is subject to dynamic market forces and various external factors.

“Factors like changes in exchange rates, and escalating price benchmarks mirroring crude oil prices, and the Panama Canal drought-induced vessel scarcity impacted transport costs especially for imported LPG.

“These factors have had a significant effect on energy prices in recent times and could undoubtedly be some of the reasons for recent price hikes witnessed in the domestic market,” he explained.

Odeh said that NLNG was fully focused towards ensuring the reliable supply of LPG production to the domestic market at prices that are reflective of the market. (NAN) (www.nannews.ng)

Edited by Ekemini Ladejobi

By Emmanuella Anokam

Oilserv Group is targeting expansion in African market through the forthcoming Intra African Trade Fair (IATF 2023).

The company said the event would serve as an avenue to take advantage of the African market, to provide commercial prospects and showcase competence from an indigenous African operators’ perspective.

The Chairman of Oilserv Group, Dr Emeka Okwuosa, in a statement said the fair would serve as a platform to exploit the African market with its business opportunities.

The trade fair is scheduled to hold from Nov. 9 to Nov. 15, 2023 in Cairo, Egypt.

Okwuosa said participation in the trade fair would offer insights into local regulations, energy landscapes, and market trends, enabling Oilserv to tailor its services and solutions effectively

“Participating in the Intra African Trade Fair is very important for Oilserv, a Nigerian energy company with ambitions to expand its business footprint across the African continent and beyond.

“The event will serve as an invaluable platform for Oilserv to explore new markets beyond Nigeria, it will also provide a unique opportunity to establish and nurture connections with potential partners, industry stakeholders, and decision makers in various African nations.

“Furthermore, the IATF will present prospective business opportunities. Oilserv can use this event to discover potential energy projects, contracts, and investments that align with our core expertise and services.

“It is crucial for Oilserv, a Nigerian energy firm with plans to grow its clientele throughout Africa and beyond, to take part in the IATF to attract potential partners and investors who can help us tap into the vast unrealised potential of the African market.

“This event will not only allow us to establish new business connections but also strengthen existing relationships with key stakeholders in the industry,” he said.

He said that the company’s top management team will be on ground at the event to leverage on prospect the IATF would offer to showcase expertise, extensive experience, and track record.

This, he said, would enhance the company’s credibility in new African markets as well as to attract potential investment and partners.

“Participation in the IATF aligns perfectly with Oilserv’s strategic growth plans,” he added.

The IATF is a pan African business to business {B2B} cross sector trade fair with primary purpose to serve as a pivotal platform for African buyers and sellers to convene and explore various business opportunities.

The central theme for IATF2023 is: “Building Bridges for a Successful AfCFTA,” which places a strong focus on recognising and seizing growth opportunities within intra African cross border trade and investments. (NAN) (www.nanews.ng)

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Edited by Chinyere Joel-Nwokeoma

By Emmanuella Anokam

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is reviewing novel regulations aimed at ensuring regulatory clarity and compliance by licensees and permit holders, to maintain ethical standards in the upstream petroleum operations.

The NUPRC said the regulations when reviewed would ensure strict commitment and provide clarity on the implementation of the dual regulatory regime in the upstream occasioned by the preservation of licensees and leases.

Mr Gbenga Komolafe, Commission Chief Executive (CCE), NUPRC, made this known on Wednesday in Abuja at the 2nd segment of the 4th Phase of its Consultation Forum with Stakeholders on regulations development.

Komolafe said the forum was mandated by Section 216 (4) (g) of the Petroleum Industry Act (PIA), as three regulations were considered for review.

He listed the three regulations to include Draft Upstream Petroleum Code of Conduct and Compliance Regulations, Draft Upstream Petroleum (Administrative Harmonisation) Regulations and Draft Amendment to the Nigerian Upstream Petroleum Host Communities Development Regulations 2023.

Komolafe was represented by Mr Kingston Chikwendu, Head, Compliance and Enforcement, NUPRC.

He noted that the Draft Upstream Petroleum Code of Conduct and Compliance Regulations and Draft Upstream Petroleum Administrative Harmonisation Regulations were two new regulations out of the three being reviewed.

The CCE said that the two were newly introduced to further guide players in the industry and consider issues bothering on compliance, administration and enforcement.

He explained that the regulations prescribed acceptable conduct for the industry where strict rules were followed because of the type of risks involved in the business of global petroleum operations.

“So we want to set up a framework to enable both the regulator and the regulated entity to carry out operations based on certain rules and principles globally accepted.

“The need for the Upstream Petroleum Administrative Harmonisation Regulations is actually derived from the PIA which tries to revolutionise the industry to create a dual regime.

“This is because we still have the old Petroleum Act which is still on till all licenses granted under it expire.

“Because of that, we need to do harmonisation regulation to enable the regulator to know which aspect of the Petroleum Act that will be applied generally and the aspect of the PIA to be applied particularly to preserve rights of licensees and leases.

“Today’s session is part of the continuation of an ongoing series and so far we have held four phases of consultations since the first one which started in August 2022; within this period the commission has issued 14 regulations.

“The commission has identified between 26 to 30 regulations considered as key regulations required for effective implementation of the PIA,” he said.

The CCE said it had made significant progress and considered the engagement important because of the buy-in of the players in the industry and members of the public.

The News Agency of Nigeria (NAN) recalls that the first segment of the 4th Phase Consultation Forum with Stakeholders on regulations development held from Oct. 9 to Oct. 13.

The segment consulted on four regulations out of the seven listed which included Draft Upstream Commercial Operations Regulations, Upstream Petroleum Development Contract Regulations, Upstream Revocation of Licences and Lease Regulations, Petroleum Assignment of Interest Regulations 2023.

He expressed satisfaction on the feedback received during the consultation and assured that work was ongoing to finalise the regulations and proceed with further processes involved in getting them issued in the country.

The forum was attended by the officials of NUPRC, Independent Petroleum Producers Association and Indigenous Operators among others.

NAN reports that the consideration and input of stakeholders’ on the regulations will be forwarded to the Attorney General of the Federation and Minister of Justice for approval. (NAN)(www.nannews.ng)

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Edited by Emmanuel Afonne

By Emmanuella Anokam

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has announced the introduction of Nembe Crude Oil Grade, a new crude oil grade into the international crude oil market.

The announcement of the Nembe crude blend produced by Aiteo, the Operator of the NNPC/Aiteo Oil Mining Lease (OML) 29 Joint Venture (JV), was made at the ongoing Argus European Crude Conference in London on Tuesday.

OML 29, an asset located onshore Nigeria, is operated by Aiteo Eastern Exploration and Production Ltd, Africa’s leading indigenous hydrocarbon producer, following a historic acquisition from Shell in 2014.

A statement issued on Wednesday by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd., said that the Nembe crude was previously blended with the popular Bonny Light grade and exported via the Bonny Oil and Gas Terminal.

Soneye said the unique selling point of the Nembe grade with an API gravity was highlighted by both the Aiteo E & P and NNPC Limited Leadership at the Argus Conference in London.

“The Nembe Crude Oil grade also has a low sulphur content and low carbon footprint due to flare gas elimination, fitting perfectly into the required spec of major buyers in Europe.

“Two cargoes of 950,000 barrels each of the Nembe Crude Oil grade have since been exported to France and the Netherlands.

“With its attractive Assay of API 29 and low sulphur content, the Nembe Crude Oil grade commands a premium to the global Brent benchmark.

“With the NNPC-Aiteo OML 29 JV back onstream, Nigeria now boasts of an additional crude oil export of two Cargoes at 950,000 barrels each per month and 1.2 Bcf of export gas monthly,” he said.

Soneye said this remarkable achievement signaled the commencement of activities at Nigeria’s newest crude oil terminal, the Nembe Crude Oil Export Terminal (NCOET), which was licensed in line with the extant laws and Crude Oil Terminal establishment regulations.

He further said the terminal was conceived as a Floating Storage and Offloading Vessel (FSO) with a storage capacity of two million barrels and the ability to offload crude oil to any export tanker from AFRAMAX to Very Large Crude Carriers (VLCC).

“It has a loading capacity of 25,000 barrels per hour and will be exporting over 3.6 million barrels of Crude oil monthly at full scale of operation,” he added.

Soneye said currently, hydrocarbon production from OML 29, which was hitherto constrained due to evacuation challenges owing to the security issues around the Nembe Creek Trunk Line (NCTL) corridor, has been debottlenecked.

This, he said, was through a collaborative and creative approach that led to the innovation of the Alternative Crude Oil Evacuation Solution.

The Argus European Crude Conference 2023 in London is a gathering of energy majors, refiners, NOCs, traders, financial institutions, and other representatives from across the global oil markets.

The event also provides a critical opportunity for business leaders to connect, discuss, share and learn from one another. (NAN)(www.nannews.ng)

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Edited by Bashir Rabe Mani

By Emmanuella Anokam

The Petroleum Tanker Drivers (PTD) union has urged its members across the country to go about their normal duties in actualising the Renewed Hope Agenda of the President Bola Tinubu as it concerns the oil sector.

President of the union, Mr Lucky Osesua, gave the charge in a chat with newsmen in Abuja on Tuesday following the leadership crisis in the union.

Osesua said that time had come for the union to work with the Federal Government in ensuring adequate supply of petroleum products and stop incessant strikes.

“This is a time for the PTD to stand on its own and focus on the primary objectives of the association which are the delivery of petroleum products to all the states and locations within the federation,” he said.

Osesua who was represented by Dayyabu Garga, First Deputy President of the union, said that Petroleum Tanker Drivers would no longer embark on strikes that would affect the masses but would rather explore alternative options.

“Whenever NUPENG calls for a strike, we always feel so bad, as it is against the masses and businessmen.

“In the end, the outcome of the strike will not benefit members. We decided that PTD would not be used again as a tool against the Nigerian masses and the Federal Government of Nigeria.

“Henceforth, decisions we undertake will be in the interest of the suffering masses, as we are working tirelessly to resolve the leadership crisis.

“We do not intend to work against the progressive and seamless policies of the administration of President Bola Tinubu or be an attack dog to the government.

“PTD is a recognised association of its own and wants to concentrate on its main core objectives,” Osesua said.

He appealed to security agencies to always assist and work in a friendly manner with their members.

“We shall soon call for national executive council meetings to treat the issues within the PTD and regularise our activities within.

“We call on all national executive members, both past and present, to unite and come together towards ensuring an amicable resolution and smooth sailing of PTD, as without peace and unity, the association will not move forward.

“My team is ready to work with everyone, and we offer an olive branch to the opposition to contribute their quota to the growth of PTD.

“I want to assure the Nigerian people that we mean well for the country and shall never in any way inflict pain or injury on the masses,” Osesua said. (NAN)(www.nannews.ng)

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Edited by Kayode Olaitan

By Deborah Coker

Vice Chairman, Senate Committee on Environment, Sen. Ned Nwoko (PDP-Delta), says the destruction of vessels apprehended for carrying illegal goods/stolen crude oil by the military is to conceal/destroy evidence.

Nwoko said this while speaking with the News Agency of Nigeria (NAN) in Abuja.

He stressed that destroying what should be used as evidence for crime committed did not make any sense, except those expected to prevent the crime were complicit and compromised.

According to him, crude oil pipeline vandalism and destruction of vessels carrying illegal goods/stolen crude oil, did not make any sense.

“What is the point? It does not make any sense.

“You know, if somebody is found in possession of stolen goods, do you say, oh, the way to deal with this is to destroy it? No. You take it from them, you document it, you preserve it, you charge the culprits.

“And then you produce that in evidence against them in court and then ultimately return that product to the owner.”

The lawmaker who is also a member of the Senate Committee, Upstream Petroleum, added that the only reason the military destroyed vessels apprehended for crude oil theft/lifting was to destroy evidence, because their was compromise.

“Well, I think the military are complicit. You know the reason they do this, because some of them might have compromised.

“They have been bought over because to load this kind of commodity vessels- the crude – it takes weeks sometimes because of the size of the vessels, it takes time.

“So it’s not as if you just come one hour, you load it and then you run. So it takes time to get to the point of loading, and most of them are actually loaded from the official platforms.

“So who are those involved? Who are those managing those platforms? The oil companies, The producing companies, NNPC officials, the police, may be all of them are involved.

“You know what is common with these personnel, I mean the joint task force; within a very short period of time, they are all rich. They are all buying houses or buying cars or buying everything you know. So yeah, they have compromised.

“That is the only reason why I think they cannot wait for the vessels to be investigated, but rather destroy the evidence because they know it can lead to them. They destroy them, they burn them,” Nwoko said. (NAN) (www.nannews.ng)

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Edited by Idris Abdulrahman

By Emmanuella Anokam

The Nigerian National Petroleum Company Limited (NNPC Ltd.) says it is collaborating with the Nigeria Extractive Industries Transparency Initiative (NEITI) and other stakeholders to reconcile alleged indebtedness by the company and Federation Accounts Allocation Committee (FAAC).

NNPC Ltd says they are working in the Reconciliation Committee set up by President Bola Tinubu to investigate, review and reconcile financial records on alleged indebtedness to the Federation by NNPC Ltd and FAAC.

Mr Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd., said this in a statement on Monday.

This is coming on the heels of calls by a Non-Governmental Organisation (NGOs) for a probe of several monies allegedly owed to the federation by the national oil company.

Soneye said the claims by the group as baseless, considering the fact that NEITI itself had dismissed the allegations in its 2021 report, following series of engagements with NNPC Ltd.

He said at the outset of President Bola Tinubu’s administration, it was made to sell Premium Motor Spirit (PMS) imported into the country at one third of its value.

This development, he said, gave rise to an average of N400 billion monthly subsidy bill, which subsequently put a strain on its revenues and finances.

“That subsidy bill accumulated up to N3.736 trillion as of May 31, 2023.

“With respect to gas-to-power debts, the non-payment of NNPCL’s share of upstream joint venture gas supplied to the government-owned plants had led to the accumulation of indebtedness of N174.07 billion by the federation.

“Similarly, the receivables due from the federation to NNPC Exploration & Production Limited (NEPL) as of May 31, 2023 amount to $712 million (equivalent to N309.07 billion at N434.08/US$1) for revenues not remitted to NEPL but paid into the federation account.

“While the federation owed NNPCL the sum of N4.207 trillion as net indebtedness, the Company was only indebted to the federation in the sum of N2.852 trillion, made up mainly of outstanding Good and Valuable Consideration (GVC).

“This is in respect of government upstream divestments, royalties and Petroleum Profit taxes (PPT),” he said.

According to Soneye, over the years, the NNPC Ltd.’s relationship with NEITI has been very cordial, as seen in August 2020 when it became an EITI supporting company.

He added that it joined a group of over 65 extractives companies, State-Owned Enterprises (SOEs), commodity traders, financial institutions and industry partners committed to observing the EITI’s supporting company expectations.

“Indeed, aside being a signatory to several EITI’s global ethics and standards, NNPC Ltd had on the sidelines of the United Nation’s General Assembly (UNGA) in Washington DC, in September 2023, signed up to the United Nations Global Compact on human rights, labour, environment, and anti-corruption.

“Thereby becoming the first state-owned oil company to join the global initiative.

“NNPC Ltd.’s book remains open to all our stakeholders as we remain committed to delivering value to Nigerians with integrity.

“And as espoused in our principles of Transparency, Accountability and Performance Excellence (TAPE), the bulwark of the Mele Kyari leadership of the company,” he said. (NAN)(www.nannews.ng)

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Edited by Rabiu Sani-Ali

By Emmanuella Anokam

An Academic, Dr Yetunde Aladeitan has urged a comprehensive energy strategy that combines Compressed Natural Gas (CNG), improved refinery operations, and investment in renewable energy sources to address Nigeria’s energy challenges.

Aladeitan urged the Federal Government to consider the long-term sustainability and affordability of these energy solutions while addressing the concerns of the citizens.

Aladeitan, a Senior Lecturer, Department of Chemical Engineering, University of Abuja, said this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja.

According to her, the solutions are the most effective approach to addressing Nigeria’s energy challenges.

NAN reports that the Federal Government through the Presidential Compressed Natural Gas (CNG) Initiative Steering Committee recently said seven CNG conversion centres had been established in the country.

The establishment of the CNG conversion centres symbolised the commitment of President Bola Tinubu administration to spearhead energy revolution in the country.

According to Aladeitan, the introduction of CNG-powered engines as a means to offset the removal of fuel subsidies and mitigate high Premium Motor Spirit (PMS) prices in Nigeria is a strategic move.

She said it had the potential to reduce the economic burden on the government and consumers while promoting a more sustainable and cost-effective energy source.

“This transition could have various benefits, including reduced environmental impact and energy security.

“The establishment of CNG conversion and refilling centres for vehicles can be a viable option for improving energy sustainability in Nigeria.

“CNG is a cleaner and more environmentally friendly fuel compared to traditional gasoline or diesel. It can help reduce emissions and air pollution.

“However, whether its the best solution depends on a variety of factors, and it may not be the only solution to Nigeria’s energy crisis.

“Making refineries work is also important for energy sustainability, as Nigeria has significant oil reserves,’’ the university don said.

She said ensuring the efficient operation of refineries would contribute to domestic fuel production and energy security.

She however, emphasised the need to address the issues and challenges within the existing oil and gas sector to make the option effective.

She further said that the concerns about the cost of CNG compared to PMS were valid.

The lecturer advised that the pricing and affordability of alternative fuels like CNG must be carefully managed to ensure they are accessible and affordable to the general population. (NAN)(www.nannews.ng)

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Edited by Ese E. Eniola Williams