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Nigeria seeks affordable alternatives to PMS
Nigeria's government says estimates show that Compressed Natural Gas could cost as much as 97 Naira per litre. Nigeria is exploring possible affordable alternatives to Premium Motor Spirit and plans to install gas facilities at petrol stations. Adeoye Adefulu, Partner at Odujinrin and Adefulu joins CNBC Africa for more.
Wed, 14 Oct 2020 09:29:40 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The Nigerian government is considering Compressed Natural Gas (CNG) as a cost-effective alternative to Premium Motor Spirit (PMS) for vehicles, with estimates indicating it could be priced as low as 97 Naira per litre.
- Promoting the use of CNG aligns with the government's objectives to provide cheaper fuel options, create job opportunities, address environmental challenges, and meet international commitments under the Paris Accord.
- The 'talk and do' approach adopted by the government involves implementing necessary infrastructure for CNG adoption, such as installing conversion facilities at petrol stations and mechanic garages, with pilot schemes planned to demonstrate effectiveness and encourage wider uptake.
In a bid to make energy more efficient and affordable for Nigerians, the government is exploring alternative options to Premium Motor Spirit (PMS), commonly used in cars. One of the key alternatives being considered is Compressed Natural Gas (CNG), with estimates suggesting it could cost as low as 97 Naira per litre. Adeoye Adefulu, Partner at Odujinrin and Adefulu, emphasized the importance of promoting the use of CNG as an alternative fuel. He highlighted that the government's commitment to funding alternative fuel options as part of their COVID stimulus plans is a step in the right direction. The promotion of CNG not only aims to provide cheaper fuel options but also create job opportunities, help address environmental challenges, and meet international obligations under the Paris Accord. Adefulu commended the government's 'talk and do' approach, noting that they have taken concrete steps towards implementing the necessary infrastructure for CNG adoption. This includes installing CNG conversion facilities at petrol stations and mechanic garages, as well as ensuring the availability of CNG for converted vehicles. By starting with their fleet, the government aims to build confidence in the effectiveness of CNG, with pilot schemes planned in Abuja, Lagos, and key markets across the country. The pricing of CNG is seen as an economic incentive for individuals to convert their vehicles, but the cost of conversion and potential government incentives will play a crucial role in the widespread adoption of CNG in the future.
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