FG told to invest oil price gains in gas Infrastructure

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Federal Government to use profits from rising global oil prices to invest in Nigeria’s gas infrastructure.

Dr. Billy Gillis-Harry, PETROAN’s National President, made the remarks in an interview with the News Agency of Nigeria (NAN) on Sunday, commenting on the impact of tensions in the Middle East and rising oil prices on Nigeria.

He said the extra revenue from higher oil prices should be used for long-term energy infrastructure instead of being spent immediately.

“This aligns with my view that excess oil revenue above the budget benchmark should be invested in infrastructure and energy value chains rather than spent immediately,” he said.

Gillis-Harry also supports the government’s efforts to expand Compressed Natural Gas (CNG) use as a cheaper fuel for transport, calling it a smart move to help commuters cope with rising transport costs.

He emphasized that investing in gas infrastructure would allow petroleum marketers to open more CNG stations while ensuring there are enough main supply stations across the country.

Nigeria’s 2026 budget is based on a crude oil price of $64.85 per barrel. Current global tensions have pushed prices above $100 per barrel, giving Nigeria a chance to earn extra revenue. However, gains may be limited due to declining oil production. According to OPEC, Nigeria’s crude production fell by 10.67% to 1.31 million barrels per day in February 2026.

The Federal Government has been promoting CNG to reduce the impact of high petrol prices and provide cheaper fuel alternatives. PETROAN, which operates over 8,000 filling stations mainly in the South and North-Central regions, plans to work with the Presidential Initiative on Compressed Natural Gas (PiCNG) to support nationwide gas adoption.

President Bola Tinubu has directed PiCNG to roll out 100,000 vehicle conversion kits nationwide to expand access to CNG, though reports show the initiative has faced challenges despite more than $2 billion in private investments over the past two years.