A weeks-long investigation by Premium Times has uncovered significant financial misappropriation and conflicts of interest threatening Nigeria's Presidential Initiative on Compressed Natural Gas (PICNG).
Program Issues
The PICNG was launched to ease transportation costs after the removal of petrol subsidies in Nigeria. However, the investigation found that the program's noble intentions are being undermined by systemic issues, including the sale of CNG kits on the black market. An example includes one individual claiming a 'government connection' offered to sell kits for N350,000, while their market value exceeds N1 million.
Conflicts of Interest
A particularly troubling revelation involves a high-ranking official of PICNG who holds a significant stake in Hi-Grade Energies Ltd., a CNG conversion company registered just 10 days after the initiative's launch. This poses questions about the integrity of the program's leadership. There have been calls for law enforcement agencies, such as the Economic and Financial Crimes Commission (EFCC), to investigate further.
Black Market Diversions and Consequences
The initiative also faces challenges related to black market trade, negatively impacting private companies involved in CNG kit supply. One importer, Sina Kawonise, warned that unchecked diversion of kits and rapid expansion of conversion centers could undermine CNG adoption in Nigeria. This issue is exacerbated by inflated costs within the program.
The challenges facing the PICNG come at a critical time for Nigeria's energy sector. While the initiative was hailed as a cornerstone of the country's transition to cleaner and affordable energy, ongoing mismanagement threatens to squander this opportunity.
