By The Federal Government has firmly denied any involvement in raising the cost of Compressed Natural Gas (CNG) pumps, attributing the recent price increases solely to adjustments made by private-sector operators.
According to Matilda Johnson, Brands and Corporate Communications Manager at the Presidential Compressed Natural Gas Initiative (PCNGI), no government mandate or subsidy removal prompted the hike from N230 to approximately N380 per Standard Cubic Metre (SCM).
Johnson emphasized that the administration continues to support President Bola Tinubu’s directive to promote CNG as an affordable, cleaner, and more sustainable alternative fuel to petrol and diesel. The sector has attracted nearly $1 billion in private investments, showing the growth of CNG adoption in Nigeria.
Since its inception in 2023, following the removal of fuel subsidies, the Presidential CNG Initiative has made strides to encourage adoption nationwide. This includes free conversion of commercial vehicles to CNG and deployment of CNG-powered buses in states like Lagos, Ogun, Oyo, and Rivers. However, the uptake is still below target levels, with around 50,000 vehicles converted as of early 2025, short of the one million goal set for 2027.
In a related effort, Lagos motorists are offered free CNG vehicle modifications at six centres across the city starting September 13. The first 50 vehicles passing inspections at each site will receive conversion kits that allow refueling at the subsidized N230 rate at NIPCO stations. Locations include Femadec (Lekki-Epe), Portland (Ojota), Mezovest (Ajah), Dana Motors (Isolo), MBH Power (Ikorodu), and Autogig (Gbagada). Similar programs will take place simultaneously in Abuja, Ibadan, Abeokuta, and Kaduna.
While pricing adjustments by private players aim to ensure operational viability and attract further investments, authorities affirm that CNG remains a cost-effective and environmentally friendly fuel choice. This comprehensive approach aims to balance sustainability, affordability, and sector growth to meet Nigeria’s energy and environmental goals in the coming years.
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