The Independent Petroleum Marketers Association of Nigeria has sought the Federal Government’s financial backing to upgrade their stations to refuelling points for Compressed Natural Gas.
IPMAN said its members would need more funds to make CNG available in their filling stations, saying the business is capital-intensive.
In an interview with The PUNCH, the National Vice President of IPMAN, Hammed Fashola, said the association is interested in selling CNG in its filling stations but has yet to do so because of the capital required.
Fashola urged the Federal Government to allocate funds for the oil and gas sector, saying that commercial banks are hindering their business due to the high interest rate.
The IPMAN VP said the government’s backing is needed because of the huge investment required to start the CNG business.
He said, “In IPMAN, we have been soliciting for a situation whereby we have a bank of oil and gas like we have the Bank of Industry. If we have a bank of oil and gas, it will be able to understand our language and understand the dynamic in the business. No marketer can go to the Bank of Industry and get anything because it’s not made for us.
“But when you look at the huge investment required for our business now, you will agree with me that we need the government’s backing. We need the government’s help by way of a grant.
“Look at the CNG programme that is going on. IPMAN is fully in support and we are even presenting our stations now for CNG. And when you look at that CNG alone, it is capital intensive.”
He disclosed that without refilling stations, the adoption of CNG would be slow, saying this is one of the barriers to the Presidential CNG initiative.
Fashola mentioned that the association has already presented itself to the Federal Government as far as CNG is concerned, saying it is just waiting to meet with the government.
“Without CNG stations, people will not be able to access it. Even when you convert your car or your truck, the other problem is, where do you get it refilled?
“So, the government needs to look at the side of IPMAN, we are the best partner and we already presented ourselves to the Federal Government. So it’s just for them to sit with us, then harmonise things and work out how things will be done properly,” he noted.
Fashola expressed concern with the long queue of trucks in the few stations selling the product.
“Today, when you move on our highways, and see some of these trucks, you will see that they will line up in the few stations that are operating the CNG. It takes days before they can refill gas. Even the car owners too, are going through the same problem, which is not supposed to be so.
“I think that people are already supporting the CNG programme, but the government has to be proactive now by partnering with IPMAN. Our stations are there. Even for conversion, we have a location that is already good for the conversion centre. Then we have our stations, it’s just an add-on. You don’t need to go and buy sites and start removing trees and all that.
“The stations are already there. The facilities are already there, it’s just an add-on. But it is capital-intensive. The government needs to look at this and consider how we can partner together and make this thing work,” Fashola stated.
Following the removal of fuel subsidies in 2023, President Bola Tinubu’s administration adopted CNG as a cheaper and cleaner source of fuel.
The Federal Government urged the masses to convert their petrol-powered vehicles to CNG.
It also signed agreements with some organisations to build CNG stations and conversion centres.
However, the CNG initiative is still dragging due to the unavailability of refilling stations across the nation.
In October, the Nigerian Midstream and Downstream Petroleum Regulatory Authority said only 50 CNG stations were serving 200 million Nigerians.
