The Minister of Finance and Coordinating Minister of the Economy of Nigeria, Wale Edun, has said due to the price of Compressed Natural Gas (CNG) and Premium Motor Spirit (Petrol), the former should be prioritized by Nigerians.
Edun disclosed this on Tuesday at the inauguration of the Nigerian Banking Sector report by Afrinvest in Lagos.
The Minister, who was represented by Dr Armstrong Takang, the Managing Director of the Ministry of Finance Incorporated (MoFI), explained that increased adoption of CNG in the country will reduce the cost of production for businesses and households.
According to him, the country and private sector players must ramp up investments towards the Federal Government’s CNG plan.
“I do not know if you have been watching the campaign on substituting premium motor spirit (PMS) for CNG. It is an early step that we are taking. When you look at the price of CNG versus PMS, it ranges from half of it, and sometimes, it comes down to a quarter of what it costs to run on PMS.
“We believe that given that we are a gas nation and gas is cleaner than PMS, if we aggressively move in that direction, it can have a significant impact on the cost of not only fueling our vehicles, but mass transit, as well as factories that run on fuel and diesel”, he said.
The government said CNG is a cheaper alternative (N213 per standard cubic meter as of August 2023) to petrol, which goes for over N600/per litre after subsidy removal in June.