Home Biz Renewables Wabba urges FG to establish CNG stations in all LGAs

Wabba urges FG to establish CNG stations in all LGAs

KEY POINTS

  • Former NLC President Ayuba Wabba wants CNG stations established in all 774 LGAs.
  • He says limited refuelling infrastructure remains a major barrier to wider CNG adoption.
  • Wabba warns rising petrol prices are increasing pressure on households and businesses.
  • He calls for stronger support for domestic refining and crude supply to Dangote Refinery.

MAIN STORY

Former President of the Nigeria Labour Congress (NLC), Dr Ayuba Wabba, has called on the Federal Government to establish Compressed Natural Gas (CNG) dispensing stations across all 774 Local Government Areas (LGAs) to make the alternative fuel more accessible.

Wabba made the call on Monday in Lagos during an interview with the News Agency of Nigeria (NAN), against the backdrop of another increase in the price of Premium Motor Spirit (PMS).

Dangote Petroleum Refinery raised its PMS gantry price by N85 per litre on Sept. 10, from N1,265 to N1,350, adding to pressure on petrol prices across the country.

Wabba said while more Nigerians were turning to CNG as an alternative to petrol, inadequate refuelling infrastructure could limit its usefulness, particularly for motorists travelling between distant parts of the country.

He said a nationwide network of CNG stations would give motorists greater confidence to adopt the fuel because they would have more opportunities to refill during long journeys.

According to him, the absence of strategically located stations could leave CNG vehicle owners stranded when their fuel runs out before reaching an available dispensing point.

Wabba, who said he owned a CNG powered vehicle, used a journey from Lagos to Maiduguri as an example of the difficulty motorists could face with the current distribution of CNG stations.

He argued that expanding access at the local government level would make refuelling more convenient and encourage wider adoption of CNG.

Beyond CNG infrastructure, the former labour leader expressed concern about repeated increases in petroleum prices, warning that higher energy costs were placing additional pressure on households and businesses.

He said fluctuations in PMS and diesel prices could worsen poverty because households face higher transport and living costs while businesses spend more to move goods, provide services and generate electricity.

Wabba therefore called for a broader government response that addresses the entire petroleum value chain, including domestic refining and crude supply.

He said ensuring adequate crude supply to Dangote Petroleum Refinery would help reduce some of the costs associated with the production and distribution of refined petroleum products.

The former NLC president said energy security should remain a central economic priority because the cost and availability of energy affect household welfare, business operations and the movement of goods and services.

THE ISSUES

  1. CNG adoption depends not only on the availability of vehicles and conversion facilities but also on whether motorists can reliably access fuel. Limited refuelling points can discourage people from switching from petrol even when CNG offers a cheaper alternative.
  2. The geographical spread of CNG stations is particularly important for inter state transport. Motorists covering long distances need confidence that they can replenish their fuel before exhausting their supply.
  3. Rising PMS prices have wider economic effects because transport costs feed into the movement of goods and services and can increase the operating expenses of businesses that depend on petroleum products.
  4. The pressure on households is compounded where higher energy and transport costs reduce the amount of income available for food and other basic needs.
  5. The call for greater domestic refining and crude supply highlights the importance of the petroleum value chain to price stability. How efficiently domestic refineries can access crude could affect the cost of refined products available to consumers.

WHAT’S BEING SAID

“The Federal Government should establish dispensing stations for CNG in the 774 local governments so that if people are travelling from Lagos to Maiduguri or Port Harcourt, for instance, and they run short of CNG, they can refill their tanks.” – Ayuba Wabba, former NLC President

“Energy security is very strategic in every country. Therefore, government needs to come up with a very quick response.” – Ayuba Wabba, former NLC President

“The only refinery now is Dangote, so government and NNPC must find a way of giving him crude oil.” – Ayuba Wabba, former NLC President

WHAT’S NEXT

Wabba wants the Federal Government to expand CNG refuelling infrastructure nationwide while addressing challenges across the petroleum value chain. He also called for adequate crude supply to domestic refineries as part of efforts to reduce costs associated with refined petroleum products.

BOTTOM LINE

Wabba says wider CNG infrastructure is necessary if the fuel is to become a practical alternative for motorists across Nigeria. He also wants the government to address domestic refining and crude supply as rising petrol prices continue to increase pressure on households and businesses.

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