Finance Minister Urges Private Sector Collaboration as Nigeria Embraces Compressed Natural Gas

In a recent development, Finance Minister Wale Edun expressed the Federal Government’s commitment to adopting Compressed Natural Gas (CNG), presenting a lucrative opportunity for private sector involvement.

Speaking at the unveiling of the 2023 Nigerian Banking Sector Report, themed ‘Getting Nigeria To Work Again!’ by Afrinvest, Edun emphasized that the widespread use of CNG could significantly cut production costs for both businesses and households.

Represented by Dr. Armstrong Takang, the Managing Director of the Ministry Of Finance Incorporated, Edun drew attention to the ongoing campaign for substituting Premium Motor Spirit (PMS) with CNG.

He highlighted the cost-effectiveness of CNG, ranging from half to a quarter of the expenses incurred when using traditional fuel. Edun stressed the need for increased investments in conversion kits, refueling stations, transportation infrastructure, and upstream processes to facilitate a successful transition.

Amidst these developments, the Federal Government remains steadfast in achieving its targets, maintaining a Tax to GDP ratio of 18% and a Revenue to GDP ratio of 25% by 2026.

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Looking ahead, Edun expressed optimism about the positive impact of ongoing reforms, anticipating substantial improvements in key revenue and debt metrics by 2025.

Ike Chioke, the Group Managing Director of Afrinvest Group, echoed the call for collaboration, emphasizing the necessity for joint efforts to restore Nigeria’s economic stability.

Reflecting on the challenges predicted in their previous report, Chioke underscored the collective responsibility in navigating the aftermath of subsidy removal and Naira devaluation.