Subsidy removal: With 5,600 CNG vehicles in Benin, Obaseki urges for increased gas investments

 

The Edo State Governor, Mr. Godwin Obaseki, has called on investors to make investments in alternative sources of energy, such as natural gas in the wake of subsidy removal, which has led to a hike in transportation costs.

The governor, who made the call while speaking to journalists in Benin City, noted that the State has the largest deposit of on-shore gas in the country.

Data from NIPCO Gas, a joint-venture company between NIPCO and Nigeria Gas Company Limited (NGC), indicate that over 5,600 vehicles in Benin City run on Compressed Natural Gas after the initiative was rolled out in 2007 and commissioned in 2009.

According to Obaseki, “We are blessed with a lot of gas in Edo. There is really no reason why our tricycles and vehicles should be using petrol. We have more gas stations in Edo than any other State. We should be using more gas.

“Price levels would always go up. What we have to do is to open up the economy so that people will have more work to do. We need more manufacturing companies in Edo State.”

The gas initiative was launched after a presentation by NIPCO Plc to roll out a pilot scheme to an inter-ministerial team of the Federal Government in 2007.

“NIPCO Gas has established 15 CNG running stations in Benin to provide an alternative for the Gasoline run automobiles. Presently it is in the process of constructing further 15 stations in and around Benin City. More than 5,600 vehicles have been converted to CNG for motorists in and around Benin City,” the company said on its website.