Despite Federal Government’s push to position CNG as a cleaner, cheaper alternative to petroleum, the reality on ground suggests a rollout riddled with bottlenecks and lack of infrastructure MOYOSORE SALAMI writes.
With its vast natural gas reserves and enormous potential for the use of compressed natural gas (CNG), Nigeria’s drive for more sustainable energy alternatives is becoming more definite.
The Presidential Compressed Natural Gas Initiative (PiCNG) was launched in 2023 to fast-track the country’s transition to cleaner, affordable, and sustainable transportation energy sources, as well as, to promote the widespread adoption of CNG and electric vehicles especially in mass transit systems.
The CNG initiative is championed by President Bola Tinubu as part of measures to cushion the effect of fuel subsidy removal, and make transportation more affordable and eco-friendly. With CNG, the country hopes to lessen its reliance on conventional fossil fuels such as gasoline and diesel.
When compared to traditional fuels, CNG emits fewer greenhouse gases, improves air quality and creates a healthier living space.
Through several calculated actions meant to support its shift to greener energy, Nigeria has already set the stage for the broad adoption of CNG.
While conversion kits and CNG compatible buses were meant to be the public-facing symbols of a new energy transition, the lack of supporting systems has left many motorists uninterested or outright skeptical.
On August 14, 2025, the Chief Executive Officer of the PiCNG, Michael Oluwagbemi, said Nigeria’s Compressed Natural Gas sector has attracted more than $980 million in private investments in just 18 months, with vehicle conversions surging from 4,000 to nearly 100,000.
Oluwagbemi believes the transition to CNG offers motorists up to 90 per cent savings on fuel costs.
“Many of us move around in big jeeps, but that’s just about 10 to 20 per cent of the population. The majority, low-income earners, women, schoolchildren, and the aged, rely on public transportation, and transportation costs money. CNG is cheaper, cleaner, and part of a global shift away from internal combustion engines.”
According to him, strategic partnerships and incentives have driven the rapid expansion of CNG capacity across the country. From just five states with CNG dispensing and conversion facilities a year ago, the number has now risen to 20.
He projected that before the end of this year, at least 30 states and the Federal Capital Territory would have CNG infrastructure.
He cited major private sector investments, including the N720bn outlay by BUA and Nigerian Bottling Company on CNG trucks and 100 fuelling stations.
Oluwagbemi also urged the protection of CNG allocated for automobiles from being diverted to gas-fired power plants.
According to him, because of the incentive for transition to CNG use, using CNG allows about a 90 per cent discount.
He, however, urged the protection of the CNG allocated for automobile use from being diverted to fuel power plants.
On September 1, 2025 when The Guardian visited the Presidential CNG Initiative (PCNGI) website, it learnt there were 334 conversion centres available across the states and 15,000 private and commercial vehicles had been converted through the initiative.
So far, only a handful of states can boast of functional CNG filling stations, with the vast majority of Nigerians in over 25 states unable to access refuelling infrastructure or certified conversion centres.
Though touted as a more affordable alternative in the long run, the upfront cost of converting petrol engines to CNG is far from pocket-friendly.
A standard four-cylinder vehicle requires about N1.2 million for a complete CNG retrofit, while higher-end six-cylinder vehicles could cost up to N1.6 million.
For an average Nigerian driver struggling with economic hardship, that price tag is hardly justifiable especially in the absence of government-backed financing or subsidies.
Furthermore, many workshops offering CNG conversions are either unlicensed or under-trained, raising safety concerns among potential adopters. Drivers complain of inconsistent service standards, unclear warranty terms, and poor after-sales support.
A driver, Akeem Lawal, said converting his vehicle to run on CNG is simply not practical because the cost of conversion remains prohibitive.
“I was excited. I thought, finally, a solution to all our problems, they said CNG would be cheaper and we wouldn’t have to worry about fuel hikes anymore. But here I am, still stuck with petrol and the same problems.”
He added, “it’s a good idea, but who will pay for it? I earn just enough to feed my family and maintain my bus. CNG conversion is for those with money, not drivers like me.”
Public Awareness Still Low
Experts argued that unless the average Nigerian motorist can see, feel, and interact with the technology on a regular basis, the adoption curve will remain flat.
According to National Union of Road Transport Workers (NURTW) officials, a large percentage of commercial drivers are unable to take advantage of the government’s subsidies because the costs remain high, and the subsidy programmes often fail to reach the grassroots level.
An executive of the union, Olawale Ajulo, told The Guardian that the adoption of CNG is already helping to reduce transportation costs, but the impact is not yet fully visible owing to limited circulation of CNG-powered vehicles.
Ajulo said there is no major issue with the CNG initiative, and drivers who have converted their vehicles are already enjoying from the cost benefits.
“We have reduced the cost of transportation since CNG is cheaper, however, commuters are still complaining that they haven’t seen a noticeable reduction in fares, and that is because CNG vehicles are not yet widely available.”
He expressed hope that as more commercial vehicles are converted to run on CNG, the benefits would become more apparent to the public.
“I believe when there are enough commercial vehicles converted, the price will come down, and commuters will be able to enjoy cheaper transportation,” he added.
A commercial bus driver, Tunde Alamu, described the introduction of Compressed Natural Gas (CNG) in Nigeria’s transport sector as a major breakthrough, especially for commercial drivers struggling with the rising cost of petrol (PMS).
“This is the first positive change I have witnessed in the transportation sector, with the daily increase in the price of PMS; CNG is the best thing that has happened to us.”
However, he noted that the major challenge now lies in the accessibility of CNG refilling stations.
“As vehicle conversions are ongoing, what we really need is easier access to gas. Right now, Keke drivers have to go all the way to Agidingbi to refill, and before getting back to Abule Egba or Agege, the gas is already finished.”
Alamu appealed to the government to establish more CNG refilling stations, particularly along routes frequently used by commercial drivers.
“We are asking the government to help us by creating more refilling stations along commercial transport routes,” he added.
A resident, Ikechukwu Abraham, attributed the low adoption of CNG among motorists to a general lack of awareness and poor infrastructure.
“They are not embracing it because most of them don’t even know that CNG exists for vehicles,” he said.
Abraham explained that if CNG stations were as widespread as Liquefied Petroleum Gas (LPG) stations, it would significantly boost public awareness and encourage more vehicle users to consider conversion.
He added that improving visibility and access to CNG infrastructure would accelerate the shift towards cleaner, more affordable fuel alternatives in the country.
A commercial driver, Sodiq Abass, told The Guardian that he borrowed money to convert his vehicle to CNG and now regrets the decision, citing the recent spike in gas prices and a lack of corresponding savings.
He explained that like many of his colleagues, he was initially excited by the government’s promises of cheaper, cleaner fuel and long-term cost reduction.
But that optimism has since faded as the realities of CNG adoption have set in. The increase in gas prices from around N230 per SCM just weeks ago to over N380 in some areas has made it difficult to maintain the same income margins he once hoped to enjoy.
The Guardian gathered that the landscape has shifted with the recent sharp increases in CNG pump prices as of early September 2025, commercial vehicles and private cars now pay N380 Standard Cubic Metre (SCM) up from around N230 while trucks pay up to N450 SCM.
The Federal Government, however, has clarified that these price adjustments were private sector decisions not government directives and that CNG remains intended to be cheaper than PMS and diesel under a market‑driven, incentive‑based pricing framework.
According to Abass, the cost of running his CNG-powered bus is now almost on par with what he used to spend on petrol. Worse still, passengers who were expecting lower fares are now accusing drivers of exploiting them when no actual savings have been passed down. Many of his colleagues, he added, are beginning to view the switch as a misstep.
“I regret it now. I borrowed money to convert to CNG thinking it will save me cost, but the gas price keeps going up. Just last month it was around N240, now it is N380. Where are the savings?”
“I spend almost the same amount as before when I was using petrol. Even passengers are asking why do we still charge the same price as fuel vehicles. They expected cheaper fares, but how can we reduce fares when gas is almost as expensive?”
Abass said some drivers are even considering switching back to PMS. “At least with petrol, you can find it anywhere, and you’re not wasting time looking for where to refill. I’m seriously thinking of converting back. It’s becoming stressful without benefits.”
A commuter, Chinwe Okeke, said despite the government’s promises of cheaper transportation through the adoption of CNG-powered vehicles, passengers like her are yet to feel any real difference.
She explained that she was hopeful when the CNG initiative was launched, especially after fuel subsidy removal sent transport fares soaring, adding that she thought with lower running costs, commercial drivers would reduce fares, easing the financial burden on commuters. However, months into the rollout, Okeke said fares have remained the same, whether the vehicle is powered by petrol or gas.
According to her, many passengers are now disillusioned with the programme because the supposed benefits have not trickled down to the average Nigerian.
She added that the rising price of CNG and limited availability of refilling stations have only made things worse for drivers, who in turn pass the pressure back onto commuters through unchanged or sometimes higher fares.
“They said CNG would make transport cheaper, but we are still paying the same N300 to N500 for short trips. If there is no difference in price, what is the point of switching to gas?”
“Most drivers still collect the same fare as the ones using petrol, and when we ask why, they say the gas is now expensive too. So, to us passengers, it’s the same story, just a different fuel.”
Okeke added that until the benefits of CNG adoption are felt across the board from drivers to passengers the initiative will continue to feel like a “government project in theory” rather than a real solution to the transport crisis.
Data gathered from GovSpend, a public portal that archives the Federal Government’s spending revealed that about N30,021,786,404.30b had been expended in the CV-CIP Programme.
Official records on Govspend showed that over N30b has been disbursed to contractors involved in the implementation of the Presidential Compressed Natural Gas Initiative (PCNGI).
The major recipients include: Jet Systems Automobile Industries (N7,943,023,500.00), Mikano International Ltd (N2,820,000,000.00), Brilliant Model Tech Ltd (N3,384,016,920.00), Deloyd Industrial Services Ltd (N2,256,564,000.00), Rolling Energy Providers Ltd (N1,833,000,000.00), Xarraca Synergy Ltd (N1,529,850,000.00),
Jomofiro Nigeria Ltd (N1,297,200,000.00), Silveredge Projects Ltd (N1,099,800,000.00), Borkir International Company Ltd (N902,400,000.00), SBO Energy Ltd (N888,300,000.00) Biyaks Business Option Ltd (N846,000,000.00), Nigerian Gas and Transportation Solutions Ltd (N846,000,000.00), Femadec Energy Ltd (N592,330,989.00), Kojo Motors Ltd (N653,299,995.30) making a total of ₦30,021,786,404.30
These funds have been utilised primarily for setting up conversion centres, establishing mother and daughter refuelling stations, procurement of equipment, and operational expenses under the PCNGI.
Inaccessible Infrastructure In Most States
Data from the Pi-CNG dashboard shows that the programme has made the most progress in Lagos, Abuja, Edo, Ogun and a few other southern states. But vast swaths of the country including all five states in the Southeast and several in the North remain without a single functional filling station or mobile conversion unit.
In essence, millions of Nigerians have no practical way to switch to CNG, even if they were willing. The few conversion centres available are reportedly concentrated in urban areas, forcing rural or peri-urban motorists to travel long distances just to access services.
Meanwhile, most local transport unions are yet to adopt CNG-powered vehicles en masse, citing the cost of conversion and the unavailability of refill stations as major deterrents.
Policy Needs to Enable Investment, Not Restrict It
Oil and gas expert and CEO of Adesa Energy, Oluwafemi Adeleye, said the lack of meaningful impact stems from both low adoption levels and the lopsided distribution of infrastructure across regions.
He noted that many states still do not have a single conversion centre or CNG refuelling outlet, which leaves large segments of the population alienated from the programme.
According to him, the current CNG distribution framework also favours large fleet operators, as mother stations, which compress and store natural gas often choose to sell directly to high-volume customers at higher margins. This restricts access for daughter stations that would otherwise serve private motorists and public transport operators.
The result is a supply chain imbalance that places smaller consumers at a disadvantage.
He explained multiple interrelated issues stalling progress, including infrastructure gaps, limited public awareness, and the unaffordable upfront cost of conversion. While CNG is inherently cost-effective due to its slower burn rate and reduced total cost of ownership, the initial N1 million to N1.5 million price tag for conversion remains out of reach for most Nigerians, especially informal transport workers and small business owners.
Adeleye added that the government must play a more strategic role by creating an enabling regulatory and investment climate. He recommends a deregulated pricing structure for mother stations to encourage market competition and attract more investors. This, in turn, could boost the availability of CNG across more geopolitical zones.
Beyond pricing reforms, he emphasised the need for tax incentives, grants, and co-investment schemes to stimulate infrastructure rollout. Equally critical, he says, is public education, as widespread misconceptions about the safety and reliability of CNG continue to fuel mistrust.
Adeleye noted that while the initial momentum may have slowed, the long-term potential remains intact provided there’s coordinated action between the government and the private sector.
He pointed to examples like Egypt, where over 500,000 vehicle conversions were achieved within a year, arguing that Nigeria’s target is ambitious but achievable with the right mix of policy, infrastructure, and financing.
Obode: Impact Exists, But It’s Still Uneven
CEO of Everytn CNG, Anne Obode, says the impact of the CNG programme must be assessed on two levels primary and secondary. According to her, the primary impact is already being felt by motorists who have successfully converted their vehicles to CNG, as they now enjoy significantly reduced fuel costs.
However, she stressed that the broader, secondary impact such as reduced transport fares and lower food prices will only become visible once more states have functioning infrastructure in place.
Obode explained that areas like Lagos and Abuja, where the government has made considerable progress with refuelling stations and conversion centres, are starting to feel the secondary impact. But in many other states, she said, the absence of a complete infrastructure network has led to bottlenecks and frustration.
She revealed that long queues are becoming common at refuelling stations, especially in cities where the number of converted vehicles has outpaced the availability of gas outlets. This, she said, discourages other motorists from adopting CNG, as the inconvenience undermines the cost advantage.
Obode also highlighted that cost remains a significant barrier. She interacts with dozens of prospective customers each day, and most of them are unable to pay the N1million required for conversion. While the government has stepped in to support commercial vehicle conversion, she points out that the private vehicle market, which is much larger, remains largely unsupported.
Despite the challenges, she said that public perception is shifting, with more Nigerians now convinced of CNG’s safety and economic benefits. Last year, she said, most inquiries revolved around safety. Today, people are more focused on where to convert and how to refuel a sign that the market is maturing.
Obode noted that the government’s target of converting one million vehicles by 2027 is realistic, provided that infrastructure continues to expand alongside public education. She called for deeper collaboration between the government and private sector to ensure that refuelling stations and conversion centres are not only built, but are also accessible and functional.
She added that CNG is more than an energy alternative; it is a strategic pathway to lower fuel dependency, cleaner air, and more stable transport costs.
What Nigerians Want to See: Action Over Promises
It’s clear that while many Nigerians are aware of the benefits of CNG adoption, actionable steps are what they need now.
A leading manufacturer of Compressed Natural Gas (CNG) kits, Jedua Rive, highlighted the challenges surrounding the adoption of CNG vehicles in the country, pinpointing infrastructure deficits and the lack of reliable gas supply as the primary obstacles.
Rive explained that while the government has encouraged the conversion of vehicles to CNG, the necessary infrastructure to support the widespread use of gas simply isn’t in place.
He said one of the key challenges is the high cost of converting vehicles to CNG, with prices ranging from N700,000 to as high as N1.5 million, depending on the type of kit used and the number of cylinders required. While the savings from using CNG instead of petrol can potentially pay for the conversion in a few months, many motorists struggle to see a return on their investment.
“The price is important, but the real problem is gas availability, CNG is cheaper, and it could literally pay for itself. But the reality is that even if you do the most expensive conversion, you might only get to use the gas for three months before running into issues. No matter how little a driver uses the vehicle, they could make back the money in three to four months maximum, but only if the gas is readily available.”
According to him, the lack of reliable gas supply is undermining this potential and motorists who take loans to convert their vehicles often find themselves unable to repay the loan because they cannot access gas consistently. Without a stable gas supply, drivers are unable to predict their fuel costs or plan their finances.
“Some people take loans to do the conversion, but they can’t pay back because there is no certainty they will get gas. If there was a stable supply, they could calculate their savings from using gas every day, plan their finances, and pay back the loan.”
Rive pointed out that the infrastructure issue is not just about the supply of gas, but also about the refueling stations. He stressed that motorists who have already converted their vehicles cannot even access gas due to the limited number of filling stations.
“The main issue, apart from safety concerns, is the infrastructure. We need gas, but there is no gas available, and the few stations that exist are nowhere near enough to support the number of converted vehicles,” he said.
He explained that while gas stations sell to commercial users at a certain price, the government’s subsidised pricing for the general public creates a gap that further complicates the situation.
“The pricing disparity is a major issue. Gas stations sell to commercial users at a different price than what they charge the general public, which creates confusion and inconsistencies,” Rive added.
Rive noted that if the infrastructure were available, Nigerians would be more inclined to convert their vehicles to CNG.
