Nigeria seeks affordable alternatives to PMS

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.