By Anifowoshe Oladipupo
Nigeria was on the brink of a ₦12 trillion fuel subsidy crisis in 2023 before President Bola Tinubu’s bold removal of the subsidy saved the economy, according to Michael Oluwagbemi, CEO of the Presidential Compressed Natural Gas Initiative (PCNGi).
Speaking to media partners, Oluwagbemi revealed that ₦5.5 trillion had already been spent on unbudgeted fuel subsidies by May 2023, despite the Petroleum Industry Act (PIA) 2021 outlawing the practice. He described continued borrowing to fund fuel consumption as “fiscally reckless and economically suicidal.”
He urged a national shift to Compressed Natural Gas (CNG), highlighting it as a cleaner, cheaper, and immediately scalable alternative to petrol and diesel. CNG, he said, can reduce fuel costs by up to 50% and minimize emissions while enhancing engine performance.
Oluwagbemi decried the underutilization of Nigeria’s 208 trillion cubic feet of gas reserves, noting that over 90% is currently flared or reinjected. He confirmed that the Federal Government is investing heavily in CNG infrastructure, including refueling stations and conversion centers, with promising pilot programs already underway.
PCNGi Executive Chairman Ismaeel Ahmed added that the initiative goes beyond policy—it is Nigeria’s blueprint for a sustainable energy future. He outlined a strategy focusing on CNG’s acceptability, accessibility, and affordability, positioning PCNGi as the cornerstone of energy independence and economic transformation.
