The Presidential Compressed Natural Gas Initiative, PCNGI, has attributed the recent gas explosion at the NIPCO CNG station in Benin City, Edo State, to the use of an unapproved modified gas cylinder.
The explosion, which occurred on October 16, 2024, in Aduwawa, Ikpoba Hill, injured several people and destroyed vehicles, raising concerns about safety in Nigeria’s growing CNG sector.
In a statement posted on its official X account, PCNGI expressed regret over the incident and assured the public that investigations were underway.
“The PCNGI commiserates with those injured in this avoidable incident and is thankful that no lives were lost.
A close examination of the cylinder in question shows it was welded and modified, not approved for CNG use. We are coordinating with police, regulatory authorities, and NIPCO management in a thorough investigation.” The statement read.
In the communication, PCNGI also emphasized the importance of safe handling of hydrocarbons and reiterated its commitment to safety through the upcoming launch of the Nigeria Gas Vehicle Monitoring System.
On its part, NIPCO, in its statement, confirmed the findings and revealed that the explosion occurred when a vehicle with a substandard, fabricated cylinder arrived for refuelling.
“Our preliminary findings show that the explosion happened after the vehicle’s cylinder—later identified as a fake and not designed for CNG—exploded with just around 4 SCM of gas.”
However, some industry experts have criticized the government for granting NIPCO extensive control over both CNG refuelling stations and vehicle conversion, warning that it could lead to a monopoly.
An energy expert, Dotun Akingbade, questioned the government’s decision to give NIPCO significant control over the CNG project.
“The government should limit NIPCO’s role to managing gas stations alone. Their involvement in vehicle conversion is unjustifiable and could lead to a monopoly in the sector,” Akingbade said.
Since 2007, when NIPCO first presented its CNG project to the Nigerian government, the company has played a major role in promoting CNG as an alternative to gasoline. NIPCO’s partnership with the Nigerian Gas Company Limited (NGC) led to the creation of NIPCO Gas, which now operates 15 CNG stations in Benin City. However, recent accusations of risky vehicle conversions and inadequate safety inspections. experts said, have raised concerns.
Another industry expert, Salis Umeh, also pointed out that NIPCO has been accused of anti-competitive practices, insisting that only vehicles converted at its stations can be refuelled at its CNG depots.
“NIPCO is driving towards monopolizing the CNG sector, using its influence to secure sole sourcing deals with the Ministry of Finance and keep gas prices artificially low at N230, pushing out competitors,” Umeh said.
The ongoing practices, according to him, have discouraged investments from other players in the CNG market.
As the investigation continues, the experts collectively called on the government to ensure stricter oversight and regulations to prevent monopolization and safeguard public safety in Nigeria’s CNG sector.