.Govs express support for CNG to slash cost of transportation
President Bola Tinubu has urged the management of Nigeria Liquefied Natural Gas (NLNG) to do all within its powers to ensure Nigeria derives maximum benefits from its gas reserves rather than allowing them to be flared.
The President said this Wednesday at the State House, where he received members of the NLNG Board led by its Managing Director and Chief Executive Officer, Engineer Adeleye Falade.
This was contained in a statement signed by, Special Adviser to the President on Information & Strategy, Bayo Onanuga.
“I am inspired to understand that you are not limiting yourself to the gradual objective of upgrading.
“My major concern is the domestic utilisation, where you must be able to take out the flaring and convert potential environmental liability to what could be strategically and economically beneficial to the consumers in the country.
“Yes, you are doing great to really want the revenue up and taking advantage of international interests so that Nigeria might be deriving benefits, but help us back home.”
He commended the team for maximising and increasing the organisation’s capacity, adding that the company was ensuring a good return on investment.
President Tinubu assured the team that he would do whatever is within his power to incentivise them to maximise the organisation’s potential for Nigerians’ benefit.
“I enjoy the teamwork and the way the NLNG is going, and you all, as team leaders, are giving value to what was the initial objective of the company. If any other incentive is needed to stimulate growth and expand your capacity, I will be willing to do that.
“We look straight far into the future, and I believe that this country has what it takes; but whatever asset that we have in the ground is nothing unless it’s brought up to service the economy, the people, and realisation of a good return on investment.
“I think that is the primary focus. But think of people, the need for domestication of some of these energy requirements and pricing mechanisms so that the ordinary man will feel it,” the President said.
In his remarks, the Managing Director and Chief Executive Officer of NLNG, Engineer Adeleye Falade, told the President that the board was at the State House to brief the President on the company’s operations since assuming office in April this year.
He said NLNG has generated over $150 billion since inception, with shareholders, including Nigeria, receiving about $47 billion as dividends. Nigeria has a 49 per cent stake in the organisation.
The Managing Director said NLNG was earlier operating at about 60 per cent capacity because the country could not produce crude optimally, resulting in the use of only four of the six available trains.
He told the President that for now, all LPG production, commonly known as cooking gas, is concentrated on the domestic market.
Engineer Falade, however, informed the President that, due to increased oil production from positive developments in the oil and gas sector, capacity has been increased to five trains, with more improvements expected.
He told the President that NLNG is keen to inaugurate Train Seven, which will boost its capacity by 35 per cent and further increase its current capacity, adding that Nigeria LNG has a five per cent share of the global LNG market.
The Managing Director also told the President that the shareholders eulogized the stability in the country’s fiscal environment, adding that this stability is attracting more investment.
He lauded the security agencies and the regulators in the oil and gas industry for the stability enjoyed so far.
Falade also informed President Tinubu that the construction of the Bonny-Bodo Road and Bridge project, financed by the NLNG, has been completed and is awaiting official commissioning.
Other members of the NLNG team include: the Deputy Managing Director, Olakunle Osobu; Board Director / MD TotalEnergies EP Nigeria Limited & Country Chair Total Energies, Mr Matthieu Bouyer; Board Director/Vice Chairman/ Managing Director, Nigeria Agip Exploration, Mr Maurizio Pinna; and General Manager, External Relations & Sustainable Development, Sophia Horsfall.
Manager, Government Relations and Regulatory Compliance, Abdul Umar; Head, Government Relations, Tonbrafa Nanaghan; and Senior Government Relations Advisor, Rufai Mohammed Lawal were also present.
Minister of Information and National Orientation Mohammed Idris, Special Adviser to the President on Information & Strategy Bayo Onanuga, and Senior Special Assistant to the President on Energy Transition Yasmin Mohammed attended the event.
Meanwhile, the Nigeria Governors’ Forum (NGF) has expressed support for the proposed National Affordable Compressed Natural Gas (CNG) Transit Programme (NACTP) to reduce transportation costs and cushion the impact of fuel subsidy removal on Nigerians.
The forum expressed this in a communiqué signed by the NGF Chairman, Gov. AbdulRahman AbdulRazaq of Kwara, issued after the 3rd NGF meeting held on Wednesday night in Abuja.
Reading the communiqué, Gov. Douye Diri of Bayelsa, described the state-led initiative as a major step toward lowering fare burdens for citizens.
”The forum received a presentation on the proposed national affordable transit programme, a state-led initiative designed to translate the lower operating cost of CNG into reduced transport fares for citizens.
”The proposal envisages state support for CNG vehicle conversions, fleets and enabling infrastructure, alongside fare commitments from participating operators, with an indicative target of reducing passenger fares.
”Governors noted the initiative’s potential to ease transportation costs and agreed on the need to further consider its financing and implementation framework,” he said.
Diri also disclosed that the forum received a presentation from the Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, on opportunities for state participation in CANEX Weekend 2026 and the Intra-African Trade Fair (IATF) 2027, both scheduled to be held in Lagos.
”Governors noted the platform’s potential to showcase investment-ready projects, promote local exports and tourism, and connect state Micro, Small and Medium Enterprises (MSMEs) with African and global investors and buyers.
”The forum assured the minister of its support in achieving these objectives,” he said.
Fielding questions from newsmen on the NACTP initiative, Diri said that the timeline for the implementation would be worked out between the forum and the stakeholders who made the presentation.
The governor explained that the NGF believed that reducing the cost of transportation would have multiplier effects on cost of living and several other sectors, making the positive effect of the subsidy removal to be felt by common man.
”The rise in the cost of every other thing is also hinged on the increase in transport.
”Now that the forum is going in league with the private sector to see how we can bring in CNG, this will actually reduce the costs of transportation and it will have a multiplier effect on every other sectors.
”The impact is expected to be on our people, the very common man that we all talk about,” he said.
Diri however dismissed claims that governments at the sub-nationals have not been properly accountable for funds received from the removal of fuel subsidy, saying ”that cannot be true, but we’ll leave that debate for another day”.
