Autogas Loopholes, Cbn, Timipre Sylva

Autogas Loopholes, Cbn

Stakeholders seek Leeway as FG, CBN address autogas loopholes | The Guardian Nigeria News - Nigeria and World News

Stakeholders seek Leeway as FG, CBN address autogas loopholes | The Guardian Nigeria News - Nigeria and World News

6/20/2021 9:33:00 PM

Stakeholders seek Leeway as FG, CBN address autogas loopholes | The Guardian Nigeria News - Nigeria and World News

While the Federal Government and the Central Bank of Nigeria move to address loopholes to fast track a recently launched auto gas policy, energy experts, yesterday, called for a holistic plan that would create sustainable energy mix in the country.

CBN, as part of efforts aimed at stimulating finance to critical sectors of the economy, had introduced a N250 billion intervention under the National Gas Expansion Programme.xThe apex bank had noted under the implementation framework of the intervention that low level of investment in the industry has resulted in the minimal production and utilisation of Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) as clean alternative sources of domestic energy in Nigeria.

BREAKING: Fani-Kayode in Aso Rock as Buhari welcomes him to APC BREAKING: EFCC Chairman Abdulrasheed Bawa slumps in Abuja - Punch Newspapers Moment EFCC Chairman Abdulrasheed Bawa Slumped While Delivering Speech Inside Presidential Villa

Given the removal of subsidy on Premium Motor Spirit, President Muhammadu Buhari on December 1, 2020, had launched the Auto Gas Policy to reduce the impact of high cost of petrol price in Nigeria.While the subsidy removal has been challenging given kick back by labour unions, the auto gas programme did not go as planned due to inherent challenges, especially lack of capacity to enable Nigerians convert vehicles to run on gas as well as limited retail auto gas dispensing stations.

Speaking on the policy, Sylva said: “If you have a critical mass of vehicles, may be one million converted to use gas, you must also have a commensurate amount of filling stations that are enabled to fill the one million cars converted.“So, you cannot do one aspect of it in exclusion, they must go hand in hand, if not, the whole programme will not make sense.

“We are working right now with the Central Bank of Nigeria to ensure that we are able to bring in conversion kits for a critical mass of vehicles.“And then also give soft loans at the same time to downstream operators to fix their filling stations, so that when we fit the two together, it will work.

xPrincipal Partner, Nertier, Patrick Okigbo said: “Nigeria needs to sustain its move to gas-powered vehicles,” stressing that the initiative would provide cheaper and cleaner fuel for the country’s environment.While Nigeria currently boasts of about 206 trillion standard cubic feet of proven natural gas with dismal local utilisation, Okigbo said: “We need to use our abundantly available natural gas.”

Renowned energy expert, Prof. Wunmi Iledare, insisted that gas market expansion through corporate social investment to create employment remained on the right track.He, however, urged meaningful accountability, adding, “CBN must avoid bail out without responsive accountability back to CBN.”

Speaking on the move, PwC’s Associate Director, Energy, Utilities and Resources, Habeeb Jaiyeola, said across the world, government interventions are being used to catalyse economic development.“In many cases government interventions are quite critical in controlling cost of borrowing in developing sectors. The CBN intervention remains a positive tool for the development of the domestic gas sector,” he said.

BREAKING: Femi Fani-Kayode dumps PDP, defects to APC Buhari receives FIFA president, promises to use football for national development Breaking: EFCC Chairman Slumps in State House

However, the payback has to be enforced to ensure the fund remains available for further critical interventions, Jaiyeola noted, adding that further sensitisation on the autogas initiative would be needed for its acceptability. “This is a highly technical area where safety is of high importance especially where a mechanical item is made to run on fuel feedstock different from its original design.

The global acceptability of this needs to be obtained, especially from the original manufacturers. Possible negative impact needs to be identified as well to enable informed decision prior to implementation,” he added.Appropriate pricing system needs according him must be instituted to enable the forces of demand and supply determine the price and enable adequate returns on investment.

xAn energy expert, Michael Faniran, noted that one of the imperatives of the auto gas policy remained the need for people to convert their vehicles so that it could use both petrol and gas.“This is an additional cost to the vehicle owners. As such, government needs to create incentives aimed at vehicle owners, in the form of loans or tax credits, to offset part or all of the cost of conversion of vehicles and even for retail outlets to build dispensing units for CNG.

“The intervention by the CBN is a welcome idea as it will jumpstart the adoption of the auto gas by vehicle owners and retail outlets, and also build critical market mass. However, this is not sustainable,” Faniran noted.He insisted that there was for need for public-private partnership (PPP) type of fund to finance vehicle and retail outlets conversion kits to guarantee sustainability, adding that the CBN could disburse the funds through a special purpose vehicle with private sector players.

For private sector to come in, Faniran noted that there must be a very clear enabling policy and government must have a well thought out and bankable plan to attract the private sector. Read more: The Guardian Nigeria »

So This Happened (119) reviews Buhari’s sacking of ministers, teacher who defiled 14 pupils| Punch

In this episode, we review the unexpected development of the President, Major General Muhammadu Buhari (retd.) sacking two ministers from his cabinet; the mi...

Stakeholders chart way for creative, cultural industries | The Guardian Nigeria News - Nigeria and World News2020, no doubt, will remain memorable in the minds of many because of the haunting experience it left behind. It was one tough year for the creative economy in the world over. 🐂

Ejigbo Roads... unending pain for motorists, commuters | The Guardian Nigeria News - Nigeria and World NewsEjigbo, a suburb of Lagos, is notorious for dilapidated roads, the major reason the area is always in the news. This road is d actual ghetto Is guardian Nigeria still on twitter

2021 UTME: Candidates say power outage delays exams | The Guardian Nigeria News - Nigeria and World NewsSome candidates, who sat for the 2021 Unified Tertiary Matriculation Examination (UTME) in Maraba and some parts of the Federal Capital Territory (FCT) When will things work in this nation?

Ultraconservative Raisi elected Iran president as rivals concede | The Guardian Nigeria News - Nigeria and World NewsCongratulations poured in for ultraconservative Ebrahim Raisi Saturday on winning Iran's presidential election as his rivals conceded even before official results were announced. Iran is doomed

Chairmanship options, zoning worries dog APC national convention | The Guardian Nigeria News - Nigeria and World NewsAgainst the backdrop of recent history of divisions and infighting within the National Working Committee (NWC) of governing All Progressives Congress (APC), stakeholders have continued to examine the profile of the party’s next national chairman.

Buhari pressures Mali to return to civilian rule | The Guardian Nigeria News - Nigeria and World NewsPresident Muhammadu Buhari, yesterday, called on West African leaders to exert pressure on the military leadership in Mali to ensure that the transition process in the country is not aborted. Charity was supposed to begin from home Hypocrite See who's talking 😒