Prince Thomas Olaleye Ogungbangbe is the founder and chairman of CITA Energies and pioneer chairman of the Aviation Fuel Marketers Association of Nigeria (AFMAN), He is a prominent figure in the downstream petroleum sector and a primary infrastructure partner .In this interview , he discusses with on some germane issues in Nigeria’s transition to localized gas retailing and CNG transport, aimed at reducing passenger transport costs and ensuring transport savings reach everyday Nigerians, effective October 1, 2026.
The presidential initiative is expected to keep vehicle owners moving and incentivize petrol, diesel marketers, and independent filling station dealers to embrace CNG and autogas dispensing units as relief from high petrol and diesel prices—prices driven by foreign exchange pressures and logistics bottlenecks that frequently squeeze marketers’ working capital and suppress consumer purchasing volumes. Excepts : Ugo Amadi reports
As the nation unpacks the rollout of the Midstream and Downstream Infrastructure Fund (MDGIF), vehicle conversion targets and enforcement mechanisms, how will the newly formed joint federal-state committee fix policy coordination gaps to meet the October 1 target given that intra-state transport falls largely within state jurisdiction?
Coordination in this context is straightforward and highly workable: it relies on aligning state transit programs and union negotiations directly with the federal rollout of 1,000 new gas refueling stations and unified conversion standards.
Why is transitioning or switching to alternative energy an existential necessity rather than a mere expansion option for downstream petroleum marketers?
As a matter of fact, expensive petrol sales and foreign exchange pressures are making traditional filling stations obsolete, leaving localized gas retailing as the only way to keep customers and revenue.
How is the federal government bridging the capital gap to help independent marketers afford retrofitting upgrades, or how is the federal government helping fuel station owners afford the expensive upgrades to sell gas, ensuring they can adopt gas retailing without falling into unbankable or impossible debt?
This is achieved through targeted government interventions like the Midstream and Downstream Gas Infrastructure Fund (MDGIF), combined with import duty waivers on conversion kits and concessionary, low-interest credit lines designed to spread capital expenditures over long repayment windows
With over 120,000 vehicles reportedly already converted and an additional 500 refueling gas stations ordered, how is the government ahead of October, preventing potential long queues at existing gas retail nodes where products are finally sold, dispensed or delivered to end consumers?
The government is addressing this by using the Midstream and Downstream Gas Infrastructure Fund to finance over 100 projects—such as mother and daughter stations in supply and distribution —to ensure steady gas pressure and fast dispensing.
In practical terms, how does shifting public transport to local gas protect the domestic economy from global market shocks or wild international price swings
This is achieved by decoupling domestic transport logistics from expensive imported fuels and foreign exchange volatility, and instead leveraging our abundant local gas reserves to keep basic transport fares and food distribution costs stable, regardless of international oil price spikes,
What tangible enforcement tools will prevent transport unions from taking advantage of subsidized conversion kits while keeping passenger fares artificially high?
This is enforced by conditioning future institutional vehicle grants, state-backed operating incentives, low-cost loans, and credit-based conversion programs on verified proof of lower passenger fares.
With the October 1 deadline approaching, what specific enforcement mechanisms will ensure that transport unions pass lower operating costs down to everyday passengers rather than absorbing them as profit?
This can be managed through a joint oversight team comprising government and organized labor leaders, which will tie continued financial support and vehicle grants directly to verified proof of lower passenger fares.
All said, beyond urban commuting, how much will lower travel costs reduce food and retail prices across Nigerian markets?
Transport costs dictate the logistics of moving agricultural produce and retail goods from farms to urban centers, meaning that lower energy overhead will directly relieve the cascading distribution costs currently driving food inflation.
