Nigeria: Reps probe $65mln CNG palliative fund, demand breakdown of $496mln private investment

Zawya

5 days ago

The House of Representatives on Thursday reiterated its resolve to scrutinise the utilisation of ₦100 billion out ₦500 billion palliative fund under the public investment as well as ₦760 billion private sector investment for the implementation of Compressed Natural Gas (CNG) policy.
Chairman, Ad-hoc Committee on implementation of the Compressed Natural Gas policy, Hon. Ahmad Jaha who spoke during the flag-off of the investigative hearing, expressed concern over accessibility, sustainability and equity of Nigeria's CNG rollout.
The lawmaker who described the policy as bold in ambition but beset by troubling realities that must be confronted if it is to serve Nigerians effectively, however, warned that the policy risks failure without urgent transparency and stronger oversight.
Hon. Jaha said that following the removal of fuel subsidies in May 2023, Federal Government introduced the Presidential CNG Initiative (Pi-CNG) as part of its Renewed Hope Agenda with a view to cushion economic shocks, lower transportation costs, and advance clean energy goals.
He, however, lamented that more than a year after its launch, major concerns remain unresolved.
'While the policy was envisioned as transformative, especially for low-income earners and commercial drivers, its implementation has raised serious questions about safety, access, affordability, and public awareness,' he said.
According to Hon. Jaha explained that the Committee's core mandate is to investigate four key areas, namely: safety, viability, and sustainability of the CNG programme; the geographic equity in the distribution of conversion centres; whether the initiative aligns with global best practices; and whether Nigeria's legal and regulatory framework is adequate for overseeing such a complex transition.
While reiterating the Committee's resolve to scrutinise the management of public and private investments, he requested for details on how ₦100 billion from the ₦500 billion palliative fund has been spent, the authenticity of a ₦760 billion private sector investment claim, and the level of distribution and accessibility of CNG infrastructure across the federation.
Other issues highlighted include safety standards, availability of technical training, import duty waivers, environmental impact assessments, and whether the strategy aligns with the country's job creation and decarbonization goals.
'We are not here to obstruct progress or politicize a national policy. This is not a criminal investigation. But we must ensure that this policy works for the Nigerian people, efficiently, equitably, and sustainably,' he said.
He said the committee expects detailed submissions from key MDAs, including the Ministries of Petroleum (Gas), Finance, Transportation, and Environment; regulatory agencies like the NMDPRA, NUPRC, FRSC, SON, and Customs; and transparency bodies like NEITI and the National Bureau of Statistics.
Requested documents include the official CNG Policy, safety protocols, contractor lists, environmental assessments, and investment breakdowns.
The committee also acknowledged responses from upstream oil and gas operators who clarified that they are not involved in CNG distribution or infrastructure.
However, Hon. Jaha urged upstream, midstream, and downstream players to collaborate on a roadmap toward the local production of CNG and other clean energy alternatives.
'If this policy is falling short, this hearing must uncover why—and recommend how to fix it. If progress is being made, we will document and validate those gains,' Hon. Jaha said.
He stressed the importance of candid, data-driven presentations from all stakeholders, asserting that Nigerians 'deserve answers, not abstractions.'
In his keynote address, Speaker Abbass Tajudeen argued that the CNG Policy remains a key component to the nation's energy security, environmental sustainability, and economic diversification, and represents a strategic shift towards cleaner, safer, and more economically viable alternatives to conventional fossil fuels, especially in our transportation sector.
Hon. Tajudeen who was represented by Hon. Sada Soli, said with Nigeria's abundant reserves of natural gas, the promotion of CNG as a motor fuel is not only logical but also vital to achieving our broader goals of energy security, environmental sustainability, and economic diversification.
He said: 'Our concern is not just about the intentions of the policy, but the mechanisms of its execution — are the funds appropriated being judiciously utilized?
'Are Nigerians feeling the impact? Are safety and environmental standards being upheld? Are stakeholders adequately carried along?
'This hearing is, therefore, a platform to hear directly from the relevant MDAs, operators, industry experts, and the Nigerian people themselves. It is also an opportunity for accountability and for constructive dialogue on how to ensure the successful rollout of the CNG policy in the interest of national development.'
While urging all participants to be honest, objective and patriotic in their submissions, the Speaker assured that the Forum for 'blame games, but for solutions. Let us put Nigeria first,' he said.
In his presentation, FRSC Corps Marshal, Mr. Shehu Mohammed who declared full support for the implementation of Nigeria's CNG initiative, averred that the product is safe, cost-effective, and environmentally responsible alternative to traditional fuels.
The Corps Marshal represented by Deputy Corps Marshal, Mr. Abiodun Akinlade, urged National Assembly to provide legislative and budgetary backing to strengthen regulatory enforcement and ensure the long-term success of the programme.
While noting that the CNG Presidential Initiative aligns with global best practices in sustainable transportation and clean energy, he emphasised that with the right protocols, CNG adoption poses no significant safety risk to motorists or the public.
'CNG is not a threat, it is an opportunity,' the FRSC boss stated, adding that it is up to regulators, legislators, and stakeholders to ensure its proper integration into the transport system without compromising safety.'