CNG explosion in Edo: Tinubu asked to explain NIPCO's monopoly

• The CNG gas explosion in Benin, the Edo state capital, recently had continued to generate reactions from concerned Nigerians
• This is to the NIPCO's capability to handle the promotion of the CNG as alternative energy to fuel was being questioned by experts
• Dotun Akingbade opined that the government need to limit the role of NIPCO, saying there is no justification for the conversion rights given to the company

The recent CNG gas explosion in Benin City has sparked intense debate among experts. Some have cited the government's heavy reliance on the Nigerian Independent Petroleum Company (NIPCO) as a contributing factor.

The blast at Aduwawa, Ikpoba Hill, has raised concerns about NIPCO's capability to promote Compressed Natural Gas (CNG) as an alternative energy source, especially given Nigeria's rising fuel pump prices.

Edo explosion: NIPCO's capacity on CNG conversion under question Photo Credit: Getty Images
Source: Twitter

CNG: Akingbade questions NIPCO's competency

Experts like Dotun Akingbade suggest that the government should limit NIPCO's role to managing gas stations only, citing the company's unjustifiable concession rights for conversion. NIPCO has had a close relationship with the federal government since 2007, when it presented its CNG project to the government.

However, Akingbade maintained that NIPCO's stations had faced accusations of undertaking risky conversions and failing to properly inspect vehicles. His statement reads in part:

CNG: Professionals warn against potential monopoly

Additionally, professionals like Salis Umeh warn about NIPCO's potential monopoly and anti-competitive practices. Umeh notes that NIPCO's exclusive dealings with select suppliers, facilitated by the Ministry of Finance, may be shutting out better-established international manufacturers.

This could be a deliberate attempt to keep gas prices low (N230) and dominate the market, leveraging its pioneering agreement with NNPC Gas Marketing Limited.

These concerns highlight the need for greater oversight and regulation in the CNG sector to prevent similar incidents and ensure fair competition.

NIPCO management speaks on CNG explosion in Edo

Legit.ng earlier reported that a CNG explosion occurred at the NIPCO Gas Ltd.'s Compressed Natural Gas (CNG) station in Benin, the Edo state capital, on Thursday, October 18.

In a statement later in the day, NIPCO explained that the explosion was caused by a fake and substandard CNG cylinder installed in the vehicle.

According to the report, no less than three persons were injured during the explosion, and the company reported the incident to the police.

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Source: Legit.ng