Oil & Gas
CNG: Subsidise Vehicle Conversion, Expert Urges FG

Dr Ayodele Oni, an oil and gas expert, has advised the Federal Government to subsidise the cost of converting vehicles from petrol to Compressed Natural Gas (CNG) to encourage Nigerians to adopt the alternative fuel source.
Oni gave the advice in an interview on Sunday in Lagos.
NAN reports that President Bola Tinubu on Oct.
1 said that the federal government would make provision for 55,000 CNG conversion kits to kick-start an auto gas conversion programme.Oni, also a Partner at Bloomfield Law Practice, said that the average cost of converting vehicles from fuel to CNG was about N325,000, adding that it might be too high for many transporters to afford.
To address this issue, Oni suggested that the government needed to collaborate with private companies to establish a financial structure where those interested in conversion would contribute towards the cost.
According to him, some Nigerians have proposed that the government should make the conversion free for interested individuals.
“But, l am of the opinion that instead of making the conversion free, government can subsidise the cost.
“This is because the cost of conversion is very high. If the government bears the cost, it may have a negative effect on the economy that the government is trying to stabilise.
“Also, the removal of custom duties and VAT on the importation of conversion kits is a way of government subsidising the cost of conversion and it is a welcome idea,” he added.
Oni said that the N100 billion proposed by government for conversion kits can be likened to a means of subsidising the cost of conversion.
Oni further recommended that the government could also engage private investors to establish conversion centers across Nigeria, ensuring that the average person had access to the necessary conversion kits.
The expert added that the National Orientation Agency, in collaboration with state’s government and local governments, should enlighten the people on the importance of CNG vehicles.
To increase awareness and understanding of the benefits of CNG vehicles, he suggested that the National Orientation Agency, in partnership with state and local governments, should educate the public on the advantages of CNG vehicles.
He said this would help individuals understand the government’s efforts in subsidising the conversion costs and other financial benefits offered.
Oni said the government reintroduced fuel subsidy due to the instability of the foreign currency, especially the dollar to Naira exchange rate.
“It is not news that we import petrol and which it has been affected by the fall of Naira against dollar, and the surge of price of crude oil in the international markets.
“The forex crisis and the recent increase in crude oil have made it impossible for petrol to be sold at the current price. However, government is reluctant to increase the price of petrol.
“The possible measures that can be taken is that our refineries should be operational because this will reduce the amount of petrol being imported.
“Further to this, government should promote the use of gas against petrol which we have in abundance.
“Third, immediate parliatives should be available such as government owned means of transportation,” he advised.
On removal of VAT on diesel, Oni said that government’s attempt to remove VAT on diesel for a period of six months is a welcome step toward reducing the effect of subsidy removal.
He said that this would reduce the price of diesel and increase the purchasing power of consumers as well.
“It is important to note that VAT, or value-added tax, is a consumption tax imposed on goods and services purchased by consumers.
“It is typically added to the purchase price and paid by the consumer alongside the cost of the goods or services.
“Although the nominal tax burden is passed downstream due to the price mechanism, it is ultimately borne by consumers.
“The reduction or removal of VAT rate reduces the consumption tax on the goods, thus reducing the cost of goods and will ultimately increase the purchasing power of consumers ,” he added. (NAN)
NEWS
NGEP Urges Gas Reticulation In Buildings

By Olasunkanmi Onifade
Abuja, April 29, 2025 The National Gas Expansion Programme (NGEP) has called on stakeholders to promote the integration of gas reticulation systems in estates, districts, and industrial areas, following best practices seen in developed countries.
Chairman of NGEP, Prof.
Mohammed Ibrahim, made the call on Tuesday during the Builders’ Conference and Annual General Meeting of the Nigerian Institute of Building (NIOB), FCT Chapter, in Abuja.The conference, themed “Gas Reticulation in Building: Design, Safety, Environmental Compliance and Prospects for Builders,” focused on enhancing energy infrastructure in Nigeria’s built environment.
Ibrahim noted that with Nigeria’s vast natural gas reserves, gas reticulation offered a sustainable solution to improve energy accessibility, affordability, and reliability in homes and businesses.
“Gas reticulation in buildings presents a compelling pathway to a more sustainable, efficient, and resilient built environment.
“By prioritising sound design principles and ensuring strict adherence to safety and environmental standards, we can unlock the full potential of natural gas to drive progress,” he said.
He highlighted the key benefits of gas reticulation, including energy efficiency, cost effectiveness, versatility, and reliability.
Also speaking, the Chairman of the Council of Registered Builders of Nigeria, Samson Opaluwah, stressed the importance of capacity building for safe and efficient gas distribution.
He said this involved training engineers, technicians, and other professionals in system design, installation, and maintenance, while also strengthening regulatory frameworks and encouraging local innovation and manufacturing.
The Chairman of NIOB, FCT Chapter, Usman Okehi, emphasised the growing need to incorporate gas systems in residential, commercial, and industrial developments across Nigeria due to rising energy demands and gas availability.
According to him, with this advancement comes the need for strict adherence to design standards, rigorous safety protocols, and full environmental compliance.
“It is our responsibility as professionals and regulators to ensure these systems are functional, safe, and environmentally sound,” Okehi said.
He described the conference as a platform where stakeholders could explore the evolving landscape of gas infrastructure in building projects, share best practices, examine safety and environmental considerations, and assess future opportunities for builders in the sector.
The News Agency of Nigeria (NAN) reports that the Nigerian Institute of Building is the professional body for builders in Nigeria. It traces its origins to the Builders’ Society, established in London in 1834.
Oil & Gas
FG Inaugurates Committee to Enhance Gas Distribution in Urban Buildings

The Ministry of Petroleum Resources has inaugurated a Technical Working Group to enhance gas reticulation practices in Nigeria’s building industry.
The ministry’s Permanent Secretary, Amb. Nicholas Ella inaugurated the Technical Working Group (TWG) between the National Gas Expansion Programme (NGEP) and the Council of Registered Builders of Nigeria (CORBON) on Wednesday.
Reports= says that reticulation refers to the process of creating a network of pipes or tubes to distribute gas or other utilities to buildings or industrial sites.
The permanent secretary restated the importance of creating energy smart cities, saying that modern urban development relies on efficient gas and utility distribution systems,
“Most modern cities in developed countries have evolved to energy smart cities where energy, specifically gas and other utilities are piped to districts and estates.
“However, one of the key tools in creating energy smart city is the National Building
Code which, in essence, sets the guidelines on Building Pre-design, designs, construction and post-construction stages,” he said.
The permanent secretary reiterated the benefits of reticulated gas systems for households and businesses alike, adding that it ensured metered supply akin to water and electricity,
According to him, it eliminates the need for cumbersome refills, and also enhances safety by burying pipes and incorporating advanced safety equipments.
“The TWG is tasked with designing a comprehensive policy to implement best practices for gas reticulation using LPG, PNG, and Bio-Gas across Nigeria’s building sector.
“Key responsibilities include reviewing the current National Building Code, examining global gas distribution systems, and proposing quality standards for materials used in gas installations,” he said.
The permanent secretary emphasised the need for rigorous safety protocols and guidelines to ensure the efficient and safe use of gas in construction.
He urged the group to prioritise environmental sustainability in its recommendations, adding that the group is expected to submit its report by Nov. 15.
Earlier, Mr Samson Opaliwah, the Chairman of CORBON. expressed the council’s commitment to collaborate with the group to ensure safe uptake of gas for use in houses and housing estates in Nigeria.
“I assure you of the williness of CORBON to leverage the expertise and resources at her disposal to ensure that steps are put in place for gas infrastructure in buildings and estates.
“The gas infrastructure will be safe, sustainable and world-class.
” Our collective efforts will yield clear, standardised guidelines for safe and effective gas systems in buildings, matched with a skilled workforce to meet growing demands in Nigeria,” he said. (NAN)
Oil & Gas
Utilise Oil, Gas Industry Report as Tool for Public Debate – NEITI

The Nigeria Extractive Industries Transparency Initiative (NEITI) has urged stakeholders to utilise its 2022/2023 oil and gas report for civic engagement, constructive dialogue, and public debate.
Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji, made the call at the report’s public presentation on Thursday in Abuja.
The report was unveiled by Mr Ola Olukoyede, Chairman, Economic and Financial Crimes Commission (EFCC), alongside Sen.
George Akume, Secretary to the Government of the Federation and Chairman, NSWG, NEITI and other dignitaries.Orji emphasised the report’s significance in guiding policy, encouraging public debate, and improving governance in natural resource management.
He highlighted the report’s comprehensive data on revenues, governance structures, operations, and compliance within the oil and gas sector.
Speaking at the public presentation of the report, Akume reaffirmed the Federal Government’s commitment to transparency principles.
Olukoyede pledged to investigate the report’s findings and recommendations, noting that NEITI’s previous reports led to the recovery of over N1 billion.
The report is available on NEITI’s website, providing valuable insights into the sector’s performance and challenges.
The presentation was attended by Chairmen of National Assembly Committees, captains of industries, members of diplomatic missions, development partners, civil society organisations and the media. (NAN)