Fakoyejo OlalekanThe Central Bank of Nigeria (CBN) has been urged to hand over the N250 billion intervention fund for the National Gas Expansion Programme to the Independent Petroleum Marketers Association of Nigeria (IPMAN).
IPMAN asked that access to the fund should be granted in light of the decision to remove fuel subsidy, stating that the capital could be used by car, tricycle and truck owners to convert their fossil fuel vehicles to gas engines.
This was stated in a letter dated 3 April 2023, which was written to the Federal Government. IPMAN asked that the government persuade the CBN to disburse the fund in form of a loan for the conversion.
According to the oil marketers, it will serve as a buffer for Nigerians against the ripple effect from the removal of subsidy on fuel, which is slated for June 2023.
“What is left is the support of the Central Bank of Nigeria to provide access to the Gas Expansion Fund for vehicles, Keke, and truck owners to access loans to finance the acquisition of natural gas conversion kits,” part of the letter reads according to Punch.
IPMAN said the support of the CBN will be instrumental to its partnership with Gas Analytics & Solutions Ltd. The oil marketers and the firm have partnered to situate natural gas dispensers at over 30,000 filling stations.
The oil marketers said without a high number of Compressed Natural Gas customers, IPMAN members will not be able to raise the funds needed to set up CNG filling stations.
“Without a large pool of CNG customers, IPMAN will not be able to raise the funds required to setup CNG filling stations.
“We believe that with the support of the Ministry of Finance, IPMAN’s partnership with Gas Analytics will provide a platform that can in a matter of a few months cushion the impact of petrol subsidy removal and significantly reduce the need for foreign exchange to import petrol.
“We request an audience with you to discuss this further and present our proposal. We looking forward to hearing from you soon. Thank you for your time and consideration.”
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