If the media reports are correct, that N400 billion has been saved in the first month of subsidy removal (a figure consistent with the amount allegedly wasted historically on the subsidy monthly, before its courageous termination by the President), one wonders if the Federal Government can be dedicating 10% of the savings monthly for the next one year to fund a single-digit interest-rate, commercial banks-dispensed loans, that the following classes of experienced artisans and corporate applicants can apply for, subject to the exclusive cum compulsory vetting and approval of a panel to be made up of NECA, MAN, NACCIMA and NLC-TUC nominated members, at the states and FCT, for the following accelerated mass-transit-vehicles-and-heavy-duty-power-generators-CNG-gasification-conversion objectives.
1. All petrol station owners located at strategic vehicular transportation hubs on arterial roads in the states and the FCT, who voluntarily desire to install CNG-dispensing infrastructure in their stations.
2. All intra- and inter-states 16-to-100-seater bus owners, and 7-to-50-ton load carrying vehicular assets (light- to heavy-duty trucks and earthmoving equipment) owners.
3. All manufacturing, varied service providing and educational entities, with minimum of 10kva generators in their capital assets books.
4. Artisanal auto mechanics of light-trucks and heavy-duty automobiles, with minimum of 5 years practice experience, to be unavailable accredited by the two main mechanics associations in Nigeria (NATA and MOMTAN) from their LGAs and States’ levels, and who must be further subjected to BVN, photographic cum biometric identifications, to borrow from the fund, through the banks, to do the requisite 3-week Autogas conversion course from reputable NADDC-certified trainers, like Engr. Kunle Shonaike’s AUTOMEDICS LTD, INNOSSON MOTORS, PAN, etc.
5. Similar stringent experiential and artisanal trades’ associations’ verification pre-loan applications to be applied for heavy-duty generators maintenance/repair technicians who may also wish to learn and add generators’ gas conversion skills to their competences.
The following are the likely macroeconomic and environmental gains if CNG, which is now far cheaper at the approximate price of N160 per liter, is adopted for mass usage in fueling buses and industrial power-generation in Nigeria. It is macroeconomically far better than the inflation-spiking salary increases that Labor is asking for and the inflation-stemming advantages that the generally reduced costs of transportation and manufacturing will precipitate, will spread widely from the formal to the informal and the public to the private sectors of the society. And, because it’s a LOAN (albeit single-digit) and not a grant, the Federal Government too will profit from it.
IT MUST BE A LOAN AND NO FEDERAL OR STATE CIVIL SERVANTS MUST BE PART OF THE FUNDS DISBURSEMENT AND MANAGEMENT.
What are the likely macroeconomic and environmental gains if CNG, which is now far cheaper at the approximate price of N160 per liter, is adopted for mass usage in fueling buses and industrial power-generation in Nigeria?
If Compressed Natural Gas (CNG) is adopted for mass usage in fueling buses and industrial power-generation in Nigeria, there are several likely macroeconomic and environmental gains. These include:
1. Cost Savings: CNG, being far cheaper than conventional fuels, would significantly reduce the cost of fueling buses and power generation in Nigeria. This would lead to lower transportation and energy costs, positively impacting the economy and reducing the financial burden on consumers and businesses.
2. Reduced Dependence on Imported Fuels: Nigeria currently imports a significant amount of petroleum products for transportation and power generation. By adopting CNG, which can be sourced domestically, the country can reduce its dependence on imported fuels, leading to improved energy security and reduced foreign exchange expenditure.
3. Economic Growth: The cost savings achieved through CNG adoption can stimulate economic growth by freeing up funds that can be allocated to other productive sectors. It can also attract investments in CNG infrastructure development, creating new job opportunities and enhancing economic development.
4. Environmental Benefits: Natural gas, when burned for power generation or as vehicle fuel, emits lower levels of greenhouse gases and air pollutants compared to conventional fuels like diesel and gasoline. As a result, widespread adoption of CNG could lead to reduced carbon dioxide (CO2), nitrogen oxide (NOx), and particulate matter emissions, improving air quality and public health.
5. Reduced Carbon Footprint: As the world moves towards decarbonization, CNG can serve as a transitional fuel, as it emits fewer greenhouse gases than conventional petroleum-based fuels. By using CNG in buses and industrial power-generation, Nigeria can reduce its carbon footprint and contribute to global efforts to mitigate climate change.
6. Development of Natural Gas Sector: Wide-scale adoption of CNG would promote the development of the natural gas industry in Nigeria. This could lead to increased exploration, production, and utilization of natural gas resources, resulting in job creation and potential revenue streams for the country.
It is worth noting that while CNG has several benefits, there are also challenges such as infrastructure development, distribution network expansion, and vehicle/engine modifications. Nonetheless, with proper planning, investment in the necessary infrastructure, massive skills-upgrade of experienced artisans eager to diversify their skillsets and train others, adopting CNG for mass usage in Nigeria can yield significant macroeconomic and environmental gains. Importantly, the enumerated economic gains will be sustainable if the Presidency channels the facility through the foretasted private sector human and corporate players.
Gbola OBA writes, with the aid of AI, from Lagos and can be reached on 08080806686.