Major Monthly Highlight from the Nigerian Gas Industry – December 2024

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Major Monthly Highlight from the Nigerian Gas Industry – December 2024

The Nigerian gas industry has witnessed significant developments in December 2024, marking a month of transformation and forward-looking initiatives. Among the most notable highlights is the continued focus on expanding the use of Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) across the country, with a particular emphasis on their role in Nigeria's energy transition and sustainability efforts. The government, alongside industry stakeholders, has been actively pushing for investments in cleaner energy alternatives, aiming to reduce reliance on petroleum products and mitigate environmental challenges. This month, several key projects, policies, and partnerships have shaped the future of Nigeria's gas sector.

One of the major developments has been the announcement of zero import duty and VAT on CNG and LPG equipment by the Nigerian Customs Service. This landmark decision is aimed at reducing the cost of gas utilization infrastructure and encouraging the adoption of CNG vehicles across the country. The policy change is expected to boost the CNG market, providing an affordable alternative to petrol and diesel-powered vehicles. This move also aligns with Nigeria's broader goal of promoting cleaner energy solutions and reducing carbon emissions in line with global environmental commitments.

In line with the government's push for cleaner energy, several states and regions have taken proactive steps to promote CNG adoption. Notably, the Kwara State Government announced plans to introduce CNG-powered vehicles to its transportation system, furthering the national push to transition to alternative fuels. Additionally, the Nigerian National Petroleum Corporation Limited (NNPCL) has been intensifying its efforts to ensure the availability and affordability of CNG in various parts of the country. This includes expanding distribution channels and collaborating with local stakeholders to facilitate the widespread use of CNG in the public and private sectors.

Another significant highlight is the launch of the CNG conversion centers in several regions, including Abuja and Jigawa State. These centers are set to support the growing demand for CNG vehicles by providing the necessary infrastructure for vehicle conversions. The move is part of a broader strategy to build a robust CNG value chain that ensures easy access to the fuel and supports the transition to cleaner, more sustainable energy sources. These developments are expected to have a positive impact on the environment, reducing air pollution and contributing to the government's goal of achieving net-zero emissions by 2060.

Looking ahead, the Nigerian gas industry is poised for further growth, with investments in LNG and CNG infrastructure expected to increase in 2025. As the country continues to diversify its energy sources, the gas sector is expected to play a pivotal role in driving economic growth, reducing energy poverty, and supporting Nigeria's energy security goals. With ongoing support from both public and private sectors, the future of the Nigerian gas industry looks promising, offering numerous opportunities for innovation and sustainable development.