The federal government said the Presidential Compressed Natural Gas Initiative (P-CNGI) has already attracted more than $175 million in private investment in the energy sector in addition to government loans. The Special Assistant to the President on Energy, Mrs. Olu Verhegen, disclosed this on Monday at the ongoing Oil Trading and Logistics (OTL) Africa Downstream Week Expo 2024 in Lagos.
The Chief Executive Officer of the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Farouk Ahmed, disclosed at the conference that Nigeria’s daily petrol consumption is currently in the range of 45 million to 50 million liters.
Similarly, Dr. Hamid Mustapha, Chief Executive Officer of the Ghana National Petroleum Authority, said that importing petroleum products from the nearby 650,000 barrels per day (bpd) Dangote refinery rather than from Rotterdam would significantly reduce fuel consumption. He said on the spot that it would probably crash. It lowers domestic prices and significantly lowers the prices of other goods and services in West African countries.
Mr. Verhegen, on behalf of his personal secretary, Mr. Elie Onagoruwa, said that government incentives to promote CNG, liquefied petroleum gas (LPG) and liquefied natural gas (LNG) have raised more than $500 million since January to date. He said that the company had attracted investment.
He said the number of electric vehicle conversion facilities in the country has increased from seven in 2023 to more than 125.
The presidential aide said all the positive outcomes were a result of unprecedented incentives introduced by the government to attract new investments and facilitate the diversification of Nigeria’s energy portfolio.
He cited exemptions from import duties and value added taxes (VAT) on the sale and distribution of LNG, CNG, LPG and related equipment as incentives.
Verhegen claimed that the government has also introduced a more transparent and stable regulatory environment. He explained that clearly defining the roles of government agencies is a key first point of the reform, which will make Nigeria’s business environment more transparent, efficient and competitive.
The Presidential Advisor has clarified the regulatory scope of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) and the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure a stable and predictable regulatory environment for investors. He pointed out that the government had recorded achievements.
He said, “We are committed to the presidential We have launched an initiative.”
“The CNG initiative has attracted over $75 million in private investment to date, in addition to government financing, and there are now more than 125 vehicle conversion facilities in Nigeria, up from seven in 2023. I am.”
Verhegen said Nigeria and Africa have significant energy and renewable energy reserves, but maintained that potential and reality are two different things.
He noted that although Nigeria boasts a proud history of over 80 years in oil and gas production, current oil production and investment levels do not reflect its true or actual capabilities. I felt regretful.
He said Nigeria’s oil production has been stagnant at less than 2 million barrels per day for many years, even though that figure could easily double.
Similarly, although Nigeria holds 38 percent of Africa’s hydrocarbon reserves, it has captured only 4 percent of oil and gas investment on the continent since 2016, Verhegen said. said.
Verhegen argued that the downstream sector was not immune to the challenges faced by the industry. The downstream sector has suffered from similarly limited investment for many years, compounded by significant fiscal burdens, especially from a long history of petroleum product subsidies.
Verhegen said recognizing the historical challenges in the oil sector, the Tinubu administration has embarked on a bold reform program to address key issues and reposition Nigeria as a more desirable global investment destination for energy projects. said.
The presidential aide highlighted that one of the most significant developments in Nigeria’s downstream energy sector in the past few decades was the commissioning of the 650,000 barrels per day Dangote refinery.
Speaking to reporters on the sidelines of the meeting, the NMDPRA Chief Executive Officer revealed that Nigeria’s current daily consumption of petrol is between 45 million and 50 million liters.
He said: “Current truck shipments, the amount shipped to market, are in the range of 45 million to 50 million liters per day.However, as we are now in the fourth quarter leading up to Christmas, You can see that activities are taking place.
“But after that, consumption may fall due to pricing.”
“The other thing is that we hope that this price adjustment and the liberalization of the industry will reduce the incentive to cross borders and discourage smuggling across borders,” Ahmed said. It will remain in the country and then be exported.” You can now see the actual supply and actual demand in the market. ”
Meanwhile, speaking at a panel session at the OTL event, the Chief Executive Officer of the Ghana National Petroleum Authority, Dr. Hamid Mustapha, said that the import of petroleum products from the Dangote refinery has caused a significant collapse in the price of fuel pumps in the country and He said the price would be significantly reduced. Other products and services.
In response to a question from host Winifred Akpani, Chief Executive Officer of North West Petroleum Limited, Mr. Mustapha said that Alhaji Aliko, Africa’s richest man and the Chairman of Dangote Industries Limited, is speaking to the Nigerian media. He said he had read an interview he gave in which he asserted that the fuel was supplied by his company. At a cost of $20 billion, the refinery will meet a 50 ppm sulfur specification.
Ghanaian officials said they were excited to hear that assurance from Dangote because Ghana plans to use surplus production from the refinery and imports from Nigeria rather than Rotterdam.
He disclosed that Ghana spends about $400 million every month on importing petroleum products from abroad.
Mustapha said: “I actually read an interview that Dangote himself gave to some Nigerian media where he asserted that the fuel from the Dangote refinery meets the 50ppm standard.
“I was even more excited because even if what he produces actually reaches 650,000 barrels per day, I don’t know if all of it will be consumed by the Nigerian market.
“In that sense, there will be a need to export. Instead of importing from Rotterdam as we do now, it will be much easier to import from Nigeria, and I believe that will bring down prices. You know oil prices affect everything else.”
Mustafa added, “My brother Farooq was talking about food security and all kinds of securities.The price of petroleum products drives the price of all other goods and services. If we are importing parts from Nigeria rather than from Rotterdam, that means we can significantly reduce the price of petroleum products in Ghana and therefore make food and other goods and services cheaper for Ghana. People of Ghana.”
Peter Uzoho
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