The cost of Compressed Natural Gas (CNG) in Nigeria has surged to ₦450 per standard cubic metre following a subsidy reduction by the Federal Government.
Checks at refilling stations revealed that while truck owners now pay ₦450/SCM, commercial drivers and private cars still enjoy partial subsidies, purchasing at about ₦380/SCM. Officials say the move is aimed at ensuring transport fares do not escalate further.
An insider at the Presidential Compressed Natural Gas Initiative (PCNGI) confirmed the review, explaining that commercial vehicles benefit from subsidies, while trucks transporting goods pay more. “There’s supposed to be subsidy across board, but this is the current situation,” the official noted.
Despite subsidy adjustments, long queues at limited refilling stations remain a pressing challenge. The PCNGI says its priority is to increase the number of outlets across the country to make CNG more accessible.
A retailer disclosed that the latest adjustment was approved by NNPC Gas Marketing Limited (NGML), warning that prices could climb further to between ₦500 and ₦600/SCM to attract private sector investors.
Meanwhile, some motorists expressed concern that the rising cost and scarcity of CNG could discourage adoption, despite heavy investments in vehicle conversions. “Some drivers spent as much as ₦1.5m to convert their cars. With these queues and price hikes, many may revert to petrol,” lamented Adeyemi Paul, a ride-hailing driver.
The development comes two years after the removal of petrol subsidy, which pushed pump prices from ₦175 to about ₦870 per litre. To cushion the impact, the government promoted CNG as a cheaper alternative, with over 100,000 vehicles reportedly converted nationwide and more than 260 conversion centres established.
Authorities maintain that the initiative has created over 10,000 jobs and increased operational refilling stations from 20 in 2023 to 60, with over 100 more expected within months.
Despite these gains, stakeholders warn that rising prices could undermine public confidence in the programme unless affordability and supply stability are guaranteed.
