• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Economy
Nigeria’s National Gas Expansion Programme would require heavy petrol taxation – World Bank

Nigeria’s National Gas Expansion Programme would require heavy petrol taxation – World Bank

Nigeria introduced the NGEP in 2020

Omono OkonkwobyOmono Okonkwo
10 months ago
in Economy, Energy
Share on FacebookShare on TwitterShare on Linkedin

Nigeria’s National Gas Expansion Programme (NGEP) would require heavy petrol taxation.  

This is according to the World Bank in its Nigeria Public Finance Review report released recently. The report states that substituting compressed natural gas (CNG) for petrol in Nigeria, would take a long time and would also require heavy taxation of petrol for financial sustainability.  

In 2020, the Nigerian government introduced the NGEP, which had three goals: to convert up to 1 million vehicles in the country from petrol to compressed natural gas, to use natural gas for industries, and to use liquefied petroleum gas for clean cooking.  

Inadequate infrastructure: According to the World Bank report, the available distribution infrastructure for CNG in the near term is such that the conversion would substitute less than 10% of the petrol currently being consumed in Nigeria. The report states: 

  • “The international experience points to several potential problems with this proposal. First, the process of converting one million vehicles will likely take years.  
  • “Second, the location of gas pipelines in the south raises regional challenges, as the northern states would have to rely on liquified natural gas transported by truck, which adds substantially to the cost of supply.  
  • “Third, in all successful CNG conversion programs elsewhere in the world, CNG has displaced fuels that are heavily taxed, and yet in Nigeria, there is no immediate plan to start taxing petrol heavily.”  

The report maintains that the high taxes earlier referenced are needed because CNG vehicles are more expensive than petrol or diesel vehicles, and vehicle owners must be able to recover the cost of the vehicle conversion or the higher purchase price of an equivalent CNG vehicle through lower fuel prices.  

However, Nigeria’s tax regime is still problematic and when it comes to citizen participation, there is low tax morale among firms and households. The report provides three reasons why this is the norm: 

  • There is limited knowledge of and little readily available information about the tax system. There is a low understanding and weak implementation of the Nigerian tax policy and inadequate clarity about the prevailing tax laws, resulting in widespread ignorance, confusion, and frustration about different taxes.  
  • Nigeria’s tax collection system is often inefficient, opaque, and corrupt. The negative experience reported by both individuals and firms when dealing with the tax system and with tax officials creates apathy even among those willing to pay taxes. Even where technology has been adopted, there is dissatisfaction with the e-filing platform and the processes for filing returns. Where tax is finally collected, there is a tedious dispute resolution and appeal process, cases of double/multiple taxation,s and irregular tax administration practices.  
  • Most households and small firms point to a broken social contract, and to low trust in a government that shows little transparency or accountability in its use of taxes. The level of satisfaction with local services among Nigerians is very low.  

For the record: The NGEP proposal is to subsidize the entire costs of the first one million conversions, thereby replacing one subsidy with another. Conversions may not be entirely free for the first million vehicle owners because vehicles will have to be inspected and possibly repaired before conversion to protect the technical integrity of vehicle conversion. 


Download Nairametrics App for breaking news and market intelligence.
   
Tags: CNGNGEPWorld Bank
Omono Okonkwo

Omono Okonkwo

Omono Okonkwo is an accomplished Mass Communicator, with a remarkable track record spanning over a decade across various dimensions of the field. Her proficiency encompasses Print, Digital, and Broadcast Journalism, Copywriting, Research and Writing, Podcasting, Public Speaking, as well as a comprehensive grasp of Energy Markets. Her engagement in energy market coverage commenced officially in 2016, as she assumed the role of a country correspondent (Nigeria) with Natural Gas World, a subsidiary of Minoils Media based in Vancouver, Canada. Since then, Omono Okonkwo has consistently demonstrated excellence and left an indelible mark on the ever-evolving energy sector.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *







NM newsletters
Bankers committee
Kwakol
Abbey
IMT

Zenth Bank
UBA
Mega Millions

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • BREAKING: Tribunal sacks Gov Sule of Nasarawa, declares PDP’s David Ombugadu winner 
  • Former Petroleum Minister, Allison Madueke, charged to London court for bribery
  • Piggyvest woos Ilebaye with N7.5 million interest on 50% of her N120m grand prize

Follow us on social media:

Recent News

breaking news

BREAKING: Tribunal sacks Gov Sule of Nasarawa, declares PDP’s David Ombugadu winner 

October 2, 2023
Court orders permanent forfeiture of assets belonging to former minister Diezani

Former Petroleum Minister, Allison Madueke, charged to London court for bribery

October 2, 2023
  • Download Nairametrics iOS App
  • Download Nairametrics Android App
  • Contact Us
  • Home
  • Exclusives
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Opinions

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Login
  • Sign Up

© 2023 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In