- Nigeria’s Presidential Compressed Natural Gas Initiative (P-CNGI) has attracted over $175 million in private investments. The initiative aims to boost energy security and promote cleaner fuels.
- Ghana plans to import petroleum from the Dangote refinery, which could significantly reduce fuel prices and lower the country’s cost of goods and services.
The federal government announced that the Presidential Compressed Natural Gas Initiative (P-CNGI) has attracted over $175 million in private investments, complementing government funding in Nigeria’s energy sector. Mrs Olu Verghegen, Special Adviser to the Energy President, announced the announcement at the Oil Trading and Logistics (OTL) Africa Downstream Week Expo 2024 in Lagos.
Mr Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), revealed that Nigeria’s daily petrol consumption is between 45 million and 50 million litres. In a related statement, Dr Hammid Mustapha, CEO of the National Petroleum Authority of Ghana, emphasised that sourcing petroleum products from the nearby 650,000 barrels per day Dangote refinery could significantly lower fuel prices in Ghana and reduce costs for other goods and services.
Verghegen highlighted that government incentives aimed at increasing the use of Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and Liquefied Natural Gas (LNG) have generated over $500 million in investments this year alone. She noted a surge in electric vehicle conversion facilities, rising from seven in 2023 to over 125 today.
The adviser credited the government’s initiatives, including waivers on import duties and Value-Added Tax (VAT) for gas-related products, with creating a more transparent regulatory environment. She explained that clearly defined roles for regulatory agencies have made Nigeria’s business landscape more competitive.
“The P-CNG initiative aims to build a CNG ecosystem to facilitate cleaner transportation fuels and mitigate the impact of fuel subsidy removal,” Verghegen stated. Despite Nigeria’s rich energy reserves, she expressed concern that the country has captured only 4% of Africa’s oil and gas investment since 2016 despite holding 38% of the continent’s hydrocarbon resources.
Ahmed added that ongoing pricing adjustments are expected to reduce cross-border smuggling and stabilise local supply and demand dynamics. Meanwhile, Mustapha reiterated that importing from the Dangote refinery will alleviate Ghana’s monthly $400 million petroleum import bill and reduce fuel prices, ultimately making food and other goods more affordable.
The Ghanaian official highlighted the assurance from Dangote Industries’ President, Aliko Dangote, regarding the refinery’s compliance with environmental standards, stating, “If they hit the 650,000 barrels per day target, there will be a need for export, making it easier for us to source fuel from Nigeria.”
He concluded that reducing reliance on imports from Rotterdam in favour of Nigerian products would significantly benefit Ghana’s economy by lowering overall costs for citizens.