By Juliet Umeh
The Presidential Compressed Natural Gas Initiative, PCNGi, has revealed that Nigeria was headed towards a staggering N12 trillion fuel subsidy bill in 2023 before President Bola Tinubu intervened to end it.
Speaking during a stakeholders engagement with media partners in Lagos yesterday, the CEO and Coordinator of PCNGi, Mr. Michael Oluwagbemi, disclosed that by the time President Tinubu assumed office in May 2023, Nigeria had already spent N5.5 trillion on an unbudgeted fuel subsidy, despite the Petroleum Industry Act, PIA, of 2021 which outlawed the practice in principle.
He said: “Had we continued, that figure could have hit N12 trillion by the end of 2023. We were borrowing to fund consumption, a path that was fiscally reckless and economically suicidal.”
He added that Nigeria, despite being a gas-rich nation with over 208 trillion cubic feet of proven natural gas reserves, continued to flare and export gas while importing refined petrol, thereby draining its economy and exporting jobs.
He said: “Over 90 per cent of our gas is exported or re-injected while our citizens suffer from high energy costs. That must change. Compressed Natural Gas, CNG, offers a clean, scalable, and immediately deployable alternative.
“Unlike pipelines that require long-term development, CNG can be transported in cylinders via road and used to power vehicles and small industries. Countries such as Japan began using CNG for fleets as far back as the 1980s and Nigeria can follow suit.
“Diesel, now averaging N1,400 per litre, can be substituted with CNG via engine retrofitting, cutting fuel costs by up to 50%, reducing emissions, and improving engine performance.
“To fast-track this transition, the Federal Government is investing in: CNG refueling stations, vehicle conversion and retrofitting centers, and incentives for public and private fleet operators,” he explained.
While noting that the transition won’t happen overnight, Oluwagbemi said: “But it is happening. Pilot programmes are running, infrastructure is expanding, and Nigerians are beginning to adopt cleaner, cheaper fuel options.”
Executive Chairman of PCNGi, Ismaeel Ahmed, also emphasised that the initiative was more than a policy, adding that it was a national energy transition framework designed to deliver long-term relief and economic self-reliance.
Ahmed said: “This is more than a government directive, it’s a bold step toward securing Nigeria’s energy future. “The president was clear when he told me: ‘I don’t want to be remembered just as the president who removed subsidy, but as the one who gave Nigerians a cheaper, cleaner alternative.’”
While acknowledging that subsidy removal had an immediate and dramatic effect, Ahmed explained that delivering relief through CNG would take time, given the infrastructure involved.
However, he assured Nigerians that significant progress had been made over the past two years in building the necessary ecosystem.
Ahmed outlined the three key pillars guiding the rollout of the Presidential Compressed Natural Gas Initiative, PCNGi, to include the “Three A’s – availability, accessibility and affordability.
He said: “”First is acceptability: we must ensure that Nigerians trust CNG as a safe, efficient, and environmentally friendly fuel.
‘’The second is accessibility: we are working to expand the availability of CNG refuelling stations and conversion infrastructure across the country. Finally, affordability: CNG must remain, and will remain significantly cheaper than petrol and diesel.’’
Both leaders stated that PCNGi is central to Nigeria’s journey toward energy independence and economic resilience, an initiative focused not just on reform, but on restoring dignity, sustainability, and opportunity for all Nigerians.
The post Nigeria was heading to N12tr subsidy debt — PCNGi appeared first on Vanguard News.