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Subsidy removal: FG should use our Natural Gas infrastructure for CNG buses – IPMAN

Nigeria’s Independent Marketers Association of Nigeria (IPMAN) urged the Federal Government to adopt its infrastructure for effective and accelerated implementation of the Compressed Natural Gas (CNG) project. 

This was disclosed by Mr. Chinedu Anyaso, Chairman of IPMAN Enugu Depot Community, in an interview in Awka on Thursday. 

The interview stated that the Enugu Depot Community comprises Anambra, Ebonyi, and Enugu states. 

Downstream infrastructure 

The IPMAN chief stated that independent marketers had the widest spread in the Nigerian downstream sector of the petroleum industry, adding that they were best positioned to affect the switch to CNG more expeditiously. 

The report also noted that he urged the FG to provide training and funding for IPMAN members, as their participation in the scheme would engender speed, spread, and competition, and be devoid of administrative bottlenecks, adding: 

  • “IPMAN welcomes the desire of the Federal Government to find an alternative to Premium Motor Spirit whose price has skyrocketed with attendant inflation and the slowdown of the economy.” 
  • “I want to call on the Federal Government to use the existing downstream infrastructure which IPMAN already has on the ground with over 21 depots and thousands of outlets across Nigeria, and we have the space.” 
  • “Using independent marketers as a channel will quicken the distribution process more than looking for fresh vendors. All it requires is the right funding and training for members. 
  • “The government should work with IPMAN depot leaders who have the statistics of members and their capacities; this will help to drive the policy and bridge the energy gap we have now,” 

IPMAN also urged that FG can fix other issues lingering in Nigeria’s petroleum sector fixing the nation’s refineries for long-term solutions, adding that effective implementation of the CNG project would give Nigerians quality alternatives and energy security. 

What you should know 

President Bola Ahmed Tinubu this week said that he is targeting states and local governments to roll out compressed natural gas (CNG) buses as a solution to ease the burdens created by the removal of fuel subsidies in May 2023.   

According to him, his administration is working hard to make sure that Nigerians are relieved from the economic burdens they have across increased transportation costs, due to the high cost of fuel (N617 and upwards).  

The Plan 

Tinubu said:  

  • “Part of our program is to roll out buses across the states and local governments for mass transit at a much more affordable rate. We have made a provision to invest N100 billion between July 2023 and March to acquire 3000 units of 20-seater CNG-fueled buses.”  
  • “These buses will be shared with major transportation companies in the states using the intensity of travel per capita. Participating transport companies will be able to access credit under this facility at 9% per annum with 60 months repayment period.” 

 

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