The Federal Government has renewed its commitment to deploying one million compressed natural gas (CNG)-powered vehicles across Nigeria as part of efforts to reduce transportation costs and ease the financial burden on commuters.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, announced the renewed push in Abuja over the weekend while receiving progress reports from the Presidential Initiative on Compressed Natural Gas and Electric Vehicles and the Decade of Gas Secretariat.
According to a statement issued on Sunday by the minister’s spokesman, Louis Ibah, Ekpo directed both bodies to accelerate investments in refuelling infrastructure, expand vehicle conversion programmes and identify critical interventions needed to increase the nationwide adoption of CNG.
FG Targets Cheaper Transportation Through CNG
The renewed initiative is aimed at translating the government’s autogas policy into tangible benefits for Nigerians, particularly through lower transport fares following the removal of the petrol subsidy in 2023.
The government is promoting CNG as a potentially cheaper alternative to petrol, with the expectation that lower fuel expenses for transport operators could help reduce the cost of public transportation.
Ekpo stressed the need to follow President Bola Tinubu’s directive to make transportation more affordable through the adoption of CNG.
He said the government would continue supporting the relevant agencies to ensure that the project achieves its objectives.
Nigeria’s substantial natural gas reserves, he added, present an opportunity to reduce transportation expenses, increase domestic gas consumption and stimulate economic growth.
Refuelling Stations and Vehicle Conversions to Receive Attention
A major part of the renewed drive will focus on expanding CNG refuelling stations and making vehicle conversion facilities more accessible to motorists and transport operators.
The availability of these facilities is essential to encouraging more Nigerians to switch from petrol-powered vehicles to gas-powered alternatives.
Although CNG can offer fuel-cost savings, the impact on transport fares will depend on reliable gas supplies, affordable vehicle conversions, sufficient refuelling infrastructure and transport operators passing some of the savings on to passengers.
The Federal Government’s renewed target will therefore require sustained investment and effective coordination among government agencies, gas suppliers, conversion centres and transport unions.
CNG Initiative Reports Progress
The Chairman of the Presidential Initiative on CNG and Electric Vehicles, Ismaeel Ahmed, said the initiative would intensify its investments and programmes to expand refuelling infrastructure and increase the number of vehicles converted to run on gas.
According to Ahmed, the goal is to make CNG more accessible to transport operators and help reduce transportation costs for millions of Nigerians.
He also disclosed that a joint industry market study completed by the Decade of Gas Secretariat had provided a framework for accelerating implementation, monitoring progress, identifying infrastructure gaps and determining priority interventions.
The study is expected to support planning and coordination between the government and industry stakeholders as the country works towards wider CNG adoption.
Nigeria Records Growth in Domestic Gas Consumption
Ekpo also noted that domestic gas consumption had risen above two billion cubic feet per day for the first time in Nigeria’s history, describing the development as an opportunity to expand the use of the country’s natural gas resources.
He maintained that Nigeria’s gas reserves could support broader economic objectives through increased domestic utilisation and investment in gas-related infrastructure.
Meanwhile, the Coordinator of the Decade of Gas Secretariat, Ed Ubong, described CNG as an important component of Nigeria’s energy transition.
Ubong pledged the secretariat’s continued support for the presidential initiative, including efforts to promote domestic gas consumption and export utilisation while creating investment opportunities.
Will the One Million CNG Vehicles Target Reduce Transport Fares?
The Federal Government launched its CNG programme to cushion the impact of petrol subsidy removal by encouraging motorists and transport operators to adopt alternative fuels.
The programme includes support for vehicle conversions, the development of refuelling facilities and the expansion of infrastructure required to distribute gas.
However, achieving the one-million-vehicle target will require more than announcements and policy commitments. The availability of affordable conversion services, dependable gas supplies and conveniently located refuelling stations will be crucial to the programme’s success.
For commuters, the key question will be whether lower fuel costs for transport operators translate into reduced fares. The renewed government push signals a continued commitment to CNG adoption, but the actual impact on transportation costs will depend on implementation and the extent to which savings reach passengers.
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