Expand Infrastructure For CNG Refuelling Stations – LCCI

Lagos Chamber of Commerce & Industry (LCCI), stated that for effective transition to Compressed Natural Gas (CNG) as an alternative fuel for mobility, there is need to establish and expand the infrastructure for CNG refuelling stations across the country.

The director-general of LCCI, Dr. Chinyere Almona said this in her statement on ‘Quick Impact Interventions’ released at the weekend.

She noted that the business community is upbeat about the government’s efforts towards transitioning to CNG as an alternative fuel for mobility, saying “as we embrace this transition, the Chamber would like to offer some recommendations to ensure that the shift to CNG mobility is smooth, efficient, and impactful in reducing costs for the Nigerian people.”

She added that “to achieve the desired widespread adoption of CNG, it is critical to establish and expand the infrastructure for CNG refuelling stations across the country. Currently, access to CNG refuelling points is limited, creating a barrier to adoption.

“The success of CNG mobility depends heavily on public acceptance and understanding of its benefits. A comprehensive awareness campaign should be launched to educate citizens and businesses on the cost advantages to individuals, cost savings for the government, and the positive environmental impact of CNG adoption.”

According to Almona, transitioning to CNG requires vehicle modifications, which can be cost-prohibitive for individuals and small businesses. The government should consider creating incentives or subsidies for vehicle owners to convert their engines to run on CNG.

“The shift to CNG presents an opportunity for job creation in the energy and automotive sectors.
We need programmes to equip existing mobility entrepreneurs like mechanics, road transport workers, and commercial bus drivers with the necessary skills for CNG-related jobs, from vehicle conversions to infrastructure maintenance and operation.”

She stated that “we acknowledge the significant step towards alleviating the burden on businesses and households by removing the Value-Added Tax (VAT) on diesel and cooking gas.

“This policy shift will undoubtedly lower the operational costs for industries, reduce the overall cost of living for Nigerians, and increase home access to clean energy. The successful transition to CNG mobility definitely requires all the possible incentives to speed up the deployment. The tax reliefs for deep offshore oil and gas production could boost oil and gas sector investments.”

LCCI stated that “we look forward to the full implementation of naira payments for crude oil sales to the Dangote Refinery and other local refineries which was scheduled to start from October 1, 2024. This move will herald a significant milestone in Nigeria’s economic transformation.”

The Chamber urged the government to sustain the political will to be consistent with the reforms in the oil and gas sector and implement the Petroleum Industry Act (PIA) fully, saying “we see the long-term gains of these reforms if they are implemented under a conducive regulatory environment.

“Removing VAT on diesel and cooking gas is a bold step towards reducing the cost of living for Nigerians, but it is only the beginning. As we look to the future, the transition to Compressed Natural Gas mobility offers an opportunity to make energy more affordable, reduce emissions, and create jobs.”