Determined To Address Visible gaps and challenges in the oil and gas sector, President Bola Tinubu took a painful but necessary decision to remove fuel subsidy, which key players have applauded as saving the country from eminent economic collapse
These actions blocked the greed and the profits that smugglers and others made. Also blocked were the undue subsidies extended to neighboring countries to the detriment of the Nigerian people, rendering the economy prostrate.
Determined to address envisaged difficulties that came with fuel Subsidy removal, the president immediately launched Compressed Natural Gas Initiative (CNG) to power transportation economy and bring down costs of transportation and production. This will save over two trillion Naira a month, being used to import petroleum (PMS) and diesel (AGO) as well as free up much needed resources for more investment in healthcare and education.
The presidential initiative on compressed natural gas has since hit the ground running
In addition, the Federal Government has started the distribution of CNG conversion kits and setting up of conversion centres across the country in conjunction with the private sector. This CNG initiative is projected to reducing transportation costs by approximately 60 percent and curb inflation. Nigeria’s once-declining oil and gas industry is already experiencing a resurgence on the back of the reforms announced in May 2024 by president Bola Tinubu to address the gaps in the Petroleum Industry Act.
Similarly, the country has increased oil production to 1.61million barrels per day, and the Nation’s gas assets are receiving the attention they deserve. Investors are coming back to Nigeria with two Foreign Direct Investments signed for over half a billion dollars since then.
Industry players are unanimous that the oil and gas industry is on track and the presidents laudable reforms will continue to make Nigeria an oil and gas hub in Africa.