By Adedapo Adesanya
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has written to the federal government to release the N250 billion intervention fund for the National Gas Expansion Programme (NGEP) as loans to vehicle owners to acquire gas conversion kits.
The group called on the central government and the Central Bank of Nigeria (CBN) in a letter signed by the National President of IPMAN, Mr Chinedu Okonkwo, and addressed to the Minister of Finance, Ms Zainab Ahmed, pleading for the establishment of about 30,000 gas conversion stations, noting that the facilities would be used to cushion the impact of fuel subsidy removal.
IPMAN further said that it had applied to CBN through the NIRSAL Microfinance Bank for a partnership to develop a finance scheme for qualified Nigerians to access the gas expansion facility to convert their vehicles and need the support of the federal ministry to conclude with CBN NIRSAL Microfinance Bank.
According to it, the gas expansion fund was envisaged to support the increased utilisation of natural gas in Nigeria, and access to the funds by qualified vehicle owners would support and justify IPMAN members making the required investment along the natural gas value chain to deliver gas to vehicles. It added that the strategy would provide a cushion to Nigerians from the shock of high petrol prices when the subsidy is removed.
It added that it would significantly reduce the need for foreign exchange to import petrol.
“We are writing to request an audience with you to present a palliative solution to cushion the impact of the removal of the unsustainable petrol subsidy.
“Our partners, Gas Analytics & Solutions Ltd, has an agreement with the independent Petroleum Marketers Association of Nigeria to co-locate natural gas dispensers on our network of over 30,000 filling stations in Nigeria.
“This collaboration with IPMAN presents the most economical and expedient platform to deploy the necessary infrastructure to support a fast national roll-out of CNG (Compressed Natural Gas) for vehicles,” the organisation said.
It added: “Furthermore, CNG emits 30 to 60 per cent less Green House Gases than petrol and diesel, making it more appealing to attracting additional financing from international and regional development finance institutions that are disposed to supporting natural gas utilisation projects compared to petrol refineries.”
“What is left is the support of the Central Bank of Nigeria to provide access to the Gas Expansion Fund for vehicles, Keke, and truck owners to access loans to finance the acquisition of natural gas conversion kits,” the oil marketers stated. “Without a large pool of CNG customers, IPMAN will not be able to raise funds required to set up CNG filling stations.
“We believe that with the support of the Ministry of Finance, IPMAN’s partnership with Gas Analytics will provide a platform that can, in a matter of a few months, cushion the impact of petrol subsidy removal and significantly reduce the need for foreign exchange to import petrol.”
