Subsidy: Obaseki urges spending on alternative energy sources

The governor of Edo State, Mr. Godwin Obaseki, has urged investors to put money into alternative energy sources, such as natural gas, as a result of the removal of subsidies, which has increased the cost of transportation.

The governor noted that the State has the largest on-shore petrol deposit in the nation when he made the call on Tuesday in Benin.

Data from NIPCO Gas, a joint venture between NIPCO and Nigeria Gas Company Limited (NGC), show that after the initiative was launched in 2007 and put into operation in 2009, more than 5,600 vehicles in Benin City run on compressed natural gas.

We are fortunate to have plenty of petrol in Edo, he said. Really, there is no justification for the use of petrol in our vehicles and tricycles. In comparison to other States, Edo has the most petrol stations. We ought to use more petrol.

“Price levels would inevitably rise. The economy needs to be opened up so that there is more work for everyone. In Edo State, we require more manufacturing businesses.

The gas initiative was started as a result of NIPCO Plc’s 2007 presentation to an inter-ministerial team of the Federal Government about rolling out a pilot programme.

“NIPCO Gas has set up 15 CNG filling stations in Benin as a substitute for gasoline-powered cars. 15 additional stations are currently being built in and around Benin City. For drivers in and around Benin City, more than 5,600 vehicles have been converted to run on compressed natural gas, according to the company’s website.