- MEMAN sees new fiscal incentive under VAT Modification Order2024 as a step in the right direction
The Managing Director and Chief Executive Officer of Eterna Plc, Abiola Lukman Lawal says Nigeria’s abundant gas reserves can offer immediate solutions to the country’s energy crisis if the industry actors apply the right policies and more appropriate mechanisms .
While calling on Nigerians to adopt Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) as the new and safer transportation and cooking solutions said there was no gainsaying the fact that gas is not only viable, it is also cost effective, adding that proper publicity was the only thing required to effectively drive the conversation.
Lawal made this known at a panel session of the annual oil and gas conference of the Association of Energy Correspondents of Nigeria (NAEC), held in Lagos. The panel session was captioned, “Driving Energy Sufficiency in the Downstream Sector through CNG and LPG.” The theme of the conference was, “Gas as Energy Transition Fuel: Navigating Nigeria’s Trilemma of Finance, Energy Security, and International Politics.”
Highlighting the benefits of CNG and LPG in the downstream sector, Lawal said both sources have the potential to accelerate reduction in greenhouse gas emissions. Adding that as a cleaner energy source with verifiable cost saving efficiency level, customers would see it as the sure way to go thereby creating lots of job opportunities.
Speaking on the federal government’s efforts to ensure its circulation and accessibility, Lawal said Nigeria’s Decade of Gas Initiative, Presidential CNG Initiative (Pi-CNG) and Installation of CNG stations had already been launched to further strengthen the ambitious drive.
As part of this effort to popularize the use of the products, Lawal said that this year, 12 new CNG stations have been commissioned in Lagos and Abuja, with 35 new CNG stations planned for commissioning across the various geopolitical zones in Nigeria.
Lawal noted that Nigeria’s energy sufficiency can be achieved but only through CNG and LPG, urging the stakeholders therefore to collaboratively invest in the gas sector.
He said large-scale investment in gas infrastructure to the tune of $20billion is required annually, this is while disclosing the plan of the Presidential CNG Initiative to mobilize over $350million for CNG infrastructure by 2027.
According to him, $750 million will also be required to develop a formidable LPG transport and retailing infrastructure, as policy and regulatory reforms to encourage private participation remain critical keys for effective result.
“Tax credits and rebates for purchasing CNG vehicles and converting existing vehicles to CNG, grants and low-interest loans – combination of these factors could be effective drivers to encourage private investment in CNG and LPG infrastructure, this is while championing consumer sensitization efforts to create awareness of CNG/ LPG as viable alternatives to oil.
“Educate the public about the environmental and economic benefits of CNG and LPG through media campaigns, workshops, and community programmes. Incorporate information about CNG vehicles and their benefits in driver education and training programmes to inform new drivers of CNG as a viable alternative to conventional fuels,” he said.
Also speaking, Adelanke Dayo-Adepoju of MEMAN (Major Energies Marketers Association of Nigeria), who also represented the Executive Secretary MEMAN – Clement Isong noted that the association advocates for cleaner and more sustainable energy solutions through the promotion of natural gas (CNG & LPG), solar power and biofuels like ethanol, while working closely with partners to encourage the adoption of renewable energy practices in Nigeria.
According to her MEMAN members were delighted with the new fiscal incentive under the VAT Modification Order 2024, which exempts vital energy products and infrastructure from VAT. Such products include diesel, feedgas, LPG, CNG, Electric Vehicles, LNG infrastructure, and Clean Cooking Equipment, aligning with MEMAN’s advocacy for sustainable energy solutions.