The Federal Government has introduced a major step aimed at reducing the high cost of transportation across Nigeria by promoting compressed natural gas (CNG) as a cheaper alternative to petrol.
Under the new plan, CNG is being offered at about N380 per litre equivalent, far lower than petrol, which currently sells for over N1,200 per litre in many parts of the country. The initiative is being driven by the Presidential Compressed Natural Gas Initiative as part of efforts to ease the financial pressure on millions of Nigerians, especially transport operators.
The move comes at a time when the rising cost of fuel has pushed up transport fares and the prices of goods and services nationwide. Since the removal of fuel subsidy in 2023 under the administration of Bola Tinubu, petrol prices have continued to rise, leading to increased hardship for many households.
Government officials say the introduction of CNG is one of the key solutions to help cushion the impact of these changes. CNG is widely used in many countries as a cleaner and more affordable fuel option for vehicles.
Speaking at the launch of the program in Abuja on April 22, the Chief Executive Officer of the initiative, Ismaeel Ahmed, said the government is focused on making CNG accessible and affordable for ordinary Nigerians.
He explained that one of the biggest challenges preventing people from switching to CNG has been the cost of converting vehicles from petrol to gas.
“The barrier has always been the cost of the conversion kit and installation,” he said. “We are working to reduce that barrier so more people can adopt this cheaper fuel.”
To address this challenge, the government has introduced a credit scheme that allows vehicle owners to convert their engines to CNG without paying the full cost upfront.
The program is being implemented in partnership with financial institutions, including Moniepoint Microfinance Bank Limited, Nigerian Consumer Credit Corporation, and National Credit Guarantee Company Limited.
Under this arrangement, drivers and transport operators can spread the cost of conversion over a period of time, depending on their financial capacity. This means they can begin to enjoy the benefits of cheaper fuel while paying for the conversion in instalments.
Ahmed gave an example of how the scheme will work. Instead of paying a large sum at once, such as N100,000, a driver can now pay gradually over one month, six months, or another agreed period.
“That flexibility makes adoption easier for everyday Nigerians,” he said.
The initiative is expected to have a major impact on commercial drivers, including tricycle (keke) operators, taxi drivers, and bus drivers, who spend a large part of their income on fuel.
According to Ahmed, switching to CNG could reduce fuel expenses by as much as 60 to 70 percent. He also noted that maintenance costs are likely to drop because CNG burns cleaner than petrol.
“If a rider spends about N50,000 weekly on petrol and maintenance, CNG could reduce that drastically,” he said. “Maintenance that used to be weekly could become monthly.”
This reduction in operating costs could lead to lower transport fares, which would benefit millions of Nigerians who rely on public transport daily.
Also speaking on the programme, the Managing Director of the Nigerian Consumer Credit Corporation, Uzoma Nwagba, said the initiative is designed to ensure that economic reforms translate into real benefits for ordinary citizens.
He explained that while recent government policies, such as exchange rate reforms and subsidy removal, have improved the overall economy, many Nigerians are yet to feel the impact in their daily lives.
“The question has been how those gains reach people at the bottom. This initiative is part of that answer,” he said.
In addition to the cost benefits, CNG is also considered more environmentally friendly than petrol and diesel. It produces fewer emissions, which can help reduce air pollution in major cities.
However, one of the key challenges facing the rollout of CNG is the availability of filling stations. To address this, the Nigerian National Petroleum Company Limited has announced a list of locations where motorists can currently buy CNG.
In Lagos, the stations are located in Fola Agoro, Amuwo Odofin, Marina, Agege By Pass, Lakowe, and Odogunyan. In Abuja, CNG is available in Gaduwa, Olusegun Obasanjo Way, Gudu, Dei Dei, Gwagwalada, and Ushafa.
The government says more stations will be added across the country as demand increases. Expanding infrastructure will be critical to the success of the programme, as drivers need easy access to refuelling points.
The introduction of CNG is part of a broader strategy by the Federal Government to reform the energy sector and reduce the cost of living. Since the removal of petrol subsidy, authorities have been under pressure to provide alternatives that can ease the burden on citizens.
Transport costs are a major factor in Nigeria’s economy. When fuel prices rise, the cost of moving goods and people also increases, leading to higher prices for food and other essentials.
By promoting CNG, the government hopes to create a more stable and affordable energy system. Officials believe that if widely adopted, the initiative could transform the transport sector and improve the quality of life for many Nigerians.
For now, the success of the program will depend on how quickly Nigerians embrace the new fuel option and how effectively the government can address challenges such as infrastructure and public awareness.
As the rollout continues, many Nigerians will be watching closely to see whether the promise of cheaper fuel and lower transport costs becomes a reality.