A call has been made for stronger collaboration among government, the private sector and other industry stakeholders to maximise the economic and industrial opportunities presented by compressed natural gas (CNG) in Nigeria.

The National Automotive Design and Development Council (NADDC) and the National CNG Forum (NCNG-F) made the call when a delegation of the National CNG Forum, led by its chairman, Faruk Abdullahi, visited the NADDC headquarters in Abuja on Wednesday, August 12, 2026.

The delegation was on a mission to discuss the future of CNG and its growing importance to the development and transformation of Nigeria’s automotive industry.

Speaking during the engagement, the Director-General/Chief Executive Officer of NADDC, Otunba Oluwemimo Joseph Osanipin, highlighted Nigeria’s abundant natural gas resources and the economic advantages of CNG as alternative fuel.

Osanipin noted that CNG is cheaper to maintain and more sustainable than Premium Motor Spirit (PMS), stressing that its wider adoption could significantly reduce the cost of mobility while delivering broader economic benefits to the country.

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According to the NADDC DG, Nigeria’s transition to CNG goes beyond changing the type of fuel used by vehicles, as it also presents an opportunity to stimulate industrial development, create jobs and strengthen the country’s automotive sector.

He said the potential benefits of CNG could only be fully realised through the collective efforts of government, the private sector, industry stakeholders and relevant organisations capable of bringing together the challenges, opportunities and practical solutions required to build a sustainable CNG ecosystem.

Osanipin therefore called for sustained collaboration among stakeholders to ensure that the CNG transition delivers cleaner and more affordable mobility while promoting local manufacturing, skills development, innovation and employment generation.

Earlier, the Chairman of the National CNG Forum, Faruk Abdullahi, expressed confidence in a fruitful partnership with the Council towards the successful implementation of Nigeria’s CNG policy.

Abdullahi identified technical standards and quality assurance, local content and indigenous manufacturing, skills development, and research and innovation as key areas where the NADDC and NCNG-F could collaborate.

He described the NADDC as a strategic partner in the development of Nigeria’s automotive and CNG ecosystem, stressing that the transition to CNG must go beyond a change of fuel and become a catalyst for automotive industrialisation, local content development, skills acquisition, innovation and job creation.

The NCNG-F Chairman added that the National CNG Forum was committed to bringing the practical experience and perspectives of industry stakeholders to the table while supporting the objectives of the Federal Government.

Abdullahi also emphasised the need for stronger cooperation between government agencies and the private sector to address existing challenges and maximise the opportunities created by CNG.

The engagement, therefore, underscored the shared commitment of both organisations to developing a robust CNG ecosystem capable of supporting Nigeria’s clean and affordable mobility goals while strengthening local automotive manufacturing and contributing to wider economic development.

The United Arab Emirates’ state-owned oil giant ADNOC said Saturday one of its vessels came under attack in the Hormuz strait, the latest incident in the waterway at the centre of the US-Iran conflict.

Tehran has imposed an effective blockade of the strait, a vital shipping route for global energy supplies, carrying out strikes on commercial ships since the war began in February.

The Islamic republic has said it wants to charge users for passage, which Washington fiercely opposes.

The Abu Dhabi National Oil Company (ADNOC) “confirmed that one of its vessels was attacked while transiting the Strait of Hormuz on the evening of Friday, August 14”, according to the official WAM news agency, but reported no injuries.

In its statement, ADNOC stressed the importance of protecting seafarers and safeguarding freedom of navigation and maritime security.

After the attack, UAE presidential adviser Anwar Gargash said the Gulf state would defend its “rights to freedom of navigation” in the Strait of Hormuz.

“The repeated targeting of ADNOC tankers will not deter the UAE from pursuing a balanced and prudent policy based on the three pillars of deterrence, diplomacy, and adherence to international law,” he wrote in a post on X.

“We will exert every effort to strengthen a unified Gulf position, as it is a fundamental pillar for protecting the security of the region and the interests of its member states in this ongoing crisis.”

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The announcement came a day after the UAE accused Iran of attacking two vessels linked to ADNOC as they passed through the strait.

The UAE foreign ministry condemned what it called a “hostile Iranian attack” on the vessels and said no injuries had been reported.

Last week, ADNOC reported that three of its tankers had been attacked in the waterway, while the Emirati foreign ministry separately announced an attack on another ADNOC tanker a day later.

Continued attacks in the strait, which was free to transit before the Middle East war began, led to the collapse of an April ceasefire between the United States and Iran.

A June deal — meant to serve as a jumping-off point for negotiations on a permanent settlement — had said Iran and Oman, also bordering the waterway, would hash out future arrangements for the strait in discussion with other Gulf countries and “in line with the applicable international law”.

Last week, Iranian official Mohammad Bagher Zolghadr set out a series of conditions for reopening the strait fully, including an end to what he described as war against Iran and its regional allies, the lifting of sanctions and compensation for wartime damage.

Courtesy – AFP

In the bid to ease crude oil offtake by domestic refiners, address pricing and logistics challenges, the Nigerian government is taking a look at proposals for direct crude supplies and discounts to domestic refineries.

The Crude Oil Refinery-owners Association of Nigeria (CORAN), revealed that the proposals touch on allowing producers to deliver crude directly to nearby refineries and granting refiners a discount for transportation and handling costs embedded in the price of crude.

This was disclosed in a report by Reuters on Wednesday.

The report read, “The Federal Government is considering changes to crude allocation and pricing rules to improve feedstock access for its refiners, including Dangote Refinery.”

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The review comes as compliance with the domestic crude supply framework improved sharply in the second quarter of 2026, although refiners continue to complain that the cost and structure of domestic crude transactions make locally sourced feedstock expensive.

A spokesperson for CORAN, Eche Idoko, told Reuters that one of the proposals would enable producers, particularly those operating within international oil companies’ networks, to deliver crude directly to refineries located close to their production facilities.

Under the arrangement, the crude volumes could subsequently be reconciled at the relevant terminal, potentially reducing the need to transport the crude through longer trunkline routes.

Idoko said the proposal would bring crude closer to refineries while reducing some of the logistics costs associated with domestic supply. A second proposal would address the pricing component of domestic crude transactions.

Under the arrangement, refiners that lift crude directly from production facilities could receive a discount corresponding to freight and handling costs incorporated into the Brent-linked price of crude but which the refiners do not actually incur.

Idoko described the proposed arrangement as beneficial to both sides of the transaction. “Under one proposal, a producer linked to an IOC’s network could deliver crude directly to a nearby refinery, with volumes reconciled later at the terminal.

“This would reduce reliance on trunklines and bring crude closer to refiners. A second proposal would allow refiners that lift crude directly from production facilities to receive a discount reflecting the freight and handling costs embedded in Brent-linked pricing but not actually incurred by them. This could be a win-win for both the producers and refiners,” the report noted.

The proposed changes are coming against the backdrop of complaints by local refiners that the pricing structure for domestic crude makes their feedstock more expensive than necessary.

Recall that the Dangote Petroleum Refinery and Petrochemicals (DPRP) had estimated that Nigeria’s pricing structure could add between $3 and $4 per barrel to the cost of crude purchased by domestic refiners because transactions are often routed through trading arms of producers.

Energy analysts have similarly identified pricing, rather than the physical availability of crude, as one of the major challenges facing domestic refiners. The issue is particularly significant for the Dangote Refinery, Africa’s largest refinery, which has a nameplate capacity of 700,000 barrels per day.

Although the refinery has significantly increased its operations, securing adequate volumes of locally produced crude at competitive prices remains a key issue for the development of Nigeria’s refining industry.