Michael Olugbemi, the Program Director for the Presidential Compressed Natural Gas (CNG) Initiative, has claimed that Nigeria’s neighbouring countries are selling petrol at prices exceeding N1,500 and N1,600 per litre, while Nigeria continues to sell petrol for less than N1,000 per litre.
Speaking in an interview on Arise TV’s News Night program from 5:56, he expressed concern that despite Nigeria’s lower fuel prices, the nation faces significant economic challenges due to its long-standing dependence on petrol.
Olugbemi attributed the current hardship experienced by Nigerians to a $10 billion debt, which has accumulated over the past 25 years as a result of heavy reliance on petrol.
According to him, Nigeria’s fuel subsidy policies and delayed transition to alternative energy sources have worsened the country’s economic situation.
He emphasised that for the country to overcome its financial woes, it must reduce its dependence on petrol and shift towards alternative, more sustainable energy sources like natural gas.
He pointed out that Nigeria has a comparative advantage when it comes to natural gas, citing the nation’s substantial reserves of over 235 trillion cubic feet (TCF) of gas.
Olugbemi argued that this natural resource could be better utilised to propel economic growth and alleviate the financial burdens currently weighing on the country.
In advocating for a transition to natural gas, Olugbemi noted that the cost of gas is significantly cheaper than petrol, making it a more viable and economical option for the future.
He also highlighted the environmental benefits, pointing out that natural gas is a cleaner energy source that would contribute to reducing air pollution.
To further drive his point home, Olugbemi drew attention to India’s success in transitioning a large portion of its transportation sector to compressed natural gas.
He explained that India has converted over 6.5 million vehicles to CNG, which has contributed to cleaner air and a more sustainable fuel economy.
Olugbemi said, “The pain faced by Nigerians is because of the debt of over $10Bn from the past 25 years due to our addiction to Petrol.
“So what we should be talking about is how to make Nigerians live better without petrol.
“Nigeria is a gas country that has over 235 TCF of natural gas under our feet, and gas is currently priced at less than an almost 70% discount to petrol, whether it is local, domestic, or foreign.
“We should be talking about moving the country to natural gas because we should be making our comparative advantage to ensure that this economy is growing very fast.
“Our neighbours are already buying petrol at N1,500 and N1600, but we are selling below N1000.”