The Minister of Finance and Coordinating minister of the economy, Wale Edun, has said that the Federal Government’s adoption of Compressed Natural Gas offers an opportunity to private sector players.
Edun said this at the unveiling of the 2023 Nigerian Banking Sector Report by Afrinvest, which held in Lagos on Wednesday. The report was entitled ‘Getting Nigeria To Work Again!’
The finance minister who was represented by the Managing Director of Ministry Of Finance Incorporated, Dr Armstrong Takang, said, increasing the adopting of CNG will reduce cost of production for businesses and households. However, he highlighted that there was a need to increased investment.
He said, “I don’t know if any of you had been watching the campaign on substitution of PMS for CNG. It is an early step that we are taking. When you look at the price of CNG versus PMS, it ranges from half of it and sometimes it comes down to a quarter of what it cost to run on fuel.
“We believe that given that we are gas nation and gas is cleaner than PMS, if we aggressively move in that direction, it can have a significant impact on the cost of not only fuelling our vehicles, mass transit as well as even factories that run on fuel and diesel. We are taking steps in that direction. You will be seeing some announcements in due course in terms of steps that are being taken to trigger a demand in that value chain. There is a lot of investment that has to be done in terms of conversion kits, refuelling stations, in term midstream in terms of transportation of infrastructure and in the upstream. A lot of investment needs go into that. We believe that it provides an opportunity for private sector to partner.”
It was also revealed that the FG’s target of Tax to GDP ratio of 18 per cent and Revenue to GDP ratio of 25 per cent by 2026 remain intact.
The minister in terms of outlook said that “The successful implementation of the ongoing reforms is expected to deliver meaningful improvements across several key revenue and debt metrics by 2025.”
In his comments at the event, the Group Managing Director of Afrinvest Group, Ike Chioke, reiterated the need for collaboration to ensure that Nigeria works again.
He said, “I will like to remind you that last year in October, we launched the 2022 banking sector report and aptly titled it ‘Brace for Impact’ and on the cover was passengers on an airline bracing for impact as they expected that the plane was going to crash any moment. Then this year, the plane crashed. We are all feeling the impact of the removal of the subsidy, the devaluation of the Naira; all the things we predicted were going to happen last year because we realized that regardless of which politician won, whether it was (Bola)Tinubu, Peter Obi, or (Abubakar)Atiku, that they could not continue in the way we have been doing for so many years.”