Lagos and Abuja motorists face a unified compressed natural gas rate of N380 per standard cubic metre, aligning these cities with existing national pricing.
Before this harmonisation, Lagos and Abuja drivers enjoyed prices as low as N230/SCM, but now pay a uniform fee that bridges gaps across regions. Officials explained that unifying costs nationwide will stabilise the market, attract investments, and support small businesses reliant on economical fuel.
The Federal Government’s campaign to promote cleaner and more cost-effective energy sources began in 2023, responding to rising petrol and diesel prices after fuel subsidy removals. The Presidential Compressed Natural Gas Initiative (PCNGi) launched free CNG conversion services, particularly benefiting commercial drivers. States like Lagos, Ogun, Oyo, and Rivers have embraced the transition, introducing CNG-powered buses and expanding refuelling infrastructure.
By mid-2025, over 65 satellite stations were in operation across 21 states, supported by an investment exceeding $450 million. Despite these advances, uptake has been slower than projected, with approximately 50,000 vehicles converted, well short of the one million target set for 2027. Experts stressed on the infrastructure gaps and a delicate pricing balance as factors constraining growth.
For CNG adoption to flourish, expanding pipeline-fed refuelling points and reducing dependency on truck deliveries remain priorities. Analysts advocate establishing price points that accommodate both motorists’ affordability and investors’ return on investment, suggesting that a range of N407 to N520 per SCM would create a sustainable commercial environment.
These measures according to them, will set the stage for mass adoption, boosting savings for drivers and a positive impact on the environment. The government has promised to refine strategies to ensure the vision of widespread CNG use by 2027 becomes a reality.
