The compressed gas initiative was introduced after the government abolished petrol subsidy which led to over 200 per cent increase in petrol prices
The Senate Committee on Gas has asked the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to release details of the award and disbursement of over N100 billion to beneficiary companies who handled the Presidential Compressed Natural Gas (PCNG) project.
The Chairman of the Committee, Jarigbe Agom, demanded details of the Compressed Natural Gas project in a letter dated 9 January and addressed to the finance minister.
The Presidential CNG Initiative (Pi-CNG) is an intervention of the Bola Tinubu administration to allow Nigerians to convert their petrol vehicles to CNG vehicles at a reduced cost.
The initiative was introduced after the government abolished petrol subsidy which led to over 200 per cent increase in petrol prices. The policy has, however, not been effective.
In the letter, Mr Agom urged the minister to send a comprehensive brief of the details of the awards and disbursement of funds to beneficiary companies within seven days.
The lawmakers' request was a sequel to a petition filed by a non-governmental organisation called "Good Governance and Transparency Front" questioning the process of approval and disbursement of funds to the beneficiary companies who participated in the projects.
In the petition, the NGO called on the Senate Committee on Gas to investigate the contracting process and disbursement of funds to the beneficiary companies under the Compressed and Natural Gas project.
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Acting on the petition, the Chairman of the Senate Committee on Gas, therefore, asked the finance minister to send a comprehensive brief of the details of the awards and disbursement of funds to beneficiary companies.
The letter reads "The Committee is seeking detailed information on the process followed in the award and disbursement of funds to the companies benefiting from the allocation. I would appreciate insight into the compliance of these processes with the provisions of the Public Procurement Act 2007.
"Specifically, the Committee is interested in understanding the steps taken in the opening of bids, the qualification criteria applied and the subsequent awarding of contracts to the selected companies. Transparency and adherence to due process are crucial aspects in ensuring public trust and accountability in such initiatives.
"Kindly provide documentation and details regarding the Committees that received funding, outlining the specific projects or initiatives they are undertaking to promote the use of Compressed Natural Gas (CNG) in the country.
"I believe that this information will be invaluable for our Committee's oversight responsibilities and will contribute to ensuring the success and effectiveness of the government's efforts in promoting alternative energy sources.
"I appreciate your attention on this matter and look forward to receiving the requested information in seven (7) days from the date of receipt.
"The requested information should please, be submitted in soft copy and 30 sets of hard copy to the Clerk of the Committee."
