Abuja, Nigeria | September 1, 2025
Nigeria’s push to promote Compressed Natural Gas (CNG) as a cheaper alternative to petrol and diesel is progressing slower than expected, two years after the Federal Government launched the initiative following the removal of fuel subsidies.
Current pump prices for CNG range between ₦200 and ₦300 per standard cubic metre (SCM), significantly lower than petrol, which averages around ₦620 per litre in major cities. However, contrary to some reports suggesting that CNG prices may need to rise to ₦520/SCM to attract large-scale investment, there is no official data or credible industry confirmation to support that figure.
Experts and industry operators confirm that while CNG remains more affordable, limited infrastructure and high vehicle conversion costs continue to slow adoption. Nationwide, fewer than 60 CNG refuelling stations are operational, and conversion centres are under 150—well below the levels needed for mass use.
The Federal Government’s Presidential CNG Initiative has attracted more than $500 million in private investment, with over 100,000 vehicles converted so far. Authorities project up to one million conversions within three years, but this target remains ambitious given infrastructure constraints.
Stakeholders note that achieving parity in accessibility with petrol and diesel will require expanded refuelling networks, stronger private sector involvement, and clearer regulatory frameworks, rather than higher consumer prices.
CNG adoption remains below expectations, highlighting the gap between policy ambition and market readiness. Until nationwide access improves, petrol and diesel will continue to dominate Nigeria’s transport sector.