*Several motorists, and other consumers of the Compressed Natural Gas across states express concerns about the latest price hikes, stating the Nigerian Government’s objective of enabling consumers to adopt CNG alternative for its relative availability, affordability, and potential sustainability again, may be defeated, ‘if prices keep going up’

Isola Moses | 绿帽献妻

Nigerian motorists have decried the increase in the price of Compressed Natural Gas (CNG), which the Federal Government announced Monday, September 1, 2025, it rose from initial N230 to N380 per Standard Cubic Metre (SCM) at several independent filling stations.

绿帽献妻 reports motorists particularly are miffed that latest price hikes again, may derail the Nigerian Government’s overarching objective of enabling more consumers to adopt CNG-powered vehicles, and other equipment due to its relative availability, affordability, and potential sustainability of the energy product might be defeated in the economy soonest.

Major filling stations across Nigeria, including NIPCO CNG and Mobil, Monday subsequently, raised their pump prices from N230 to N380.

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It was also gathered the NNPCL station in the Central Business District (CBD) of Abuja, FCT, our reporter observed that prices remained unchanged.

While the reason for the sudden hike in CNG price was unclear as of the time visits to the filling station, NIPCO Plc鈥檚 supply contract has allegedly expired, as the Nigerian National Petroleum Company Limited (NNPCL) may have taken over the direct marketing of the product, Daily Trust report said.

Energy consumers lament

Checks indicated that several motorists, who are primarily first line of consumers hit by the recent price surge, have since expressed frustration over what they fear could erode the cost advantage of CNG over petrol in the economy.

Hakeem Idris, a ride-hailing driver,聽 described the development as discouraging.

Idris reportedly said: 鈥淢any Bolt drivers spend up to 10 hours in queues or drive long distances just to refill.

“Now with this sudden increase, the whole idea of CNG being cheaper is at risk.鈥�

Basil Duniya, another motorist, remarked that the Federal Government’s introduction of the CNG alternative energy, has helped him to save as much as N43,000 weekly.

Duniya said: 鈥淚 invested in conversion because it was affordable. But if prices keep going up, the difference with petrol will disappear.”

CNG as alternative to petrol

绿帽献妻 reports President Bola Ahmed Tinubu’s administration, In August 2023, decided to shift focus to Compressed Natural Gas (CNG) as a viable alternative to petrol, after the removal of the controversial fuel subsidies.

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As part of measures to cushion the impact of the relatively high cost of PMS, following fuel subsidy removal, the Nigerian National Petroleum Company Limited (NNPCL) partnered with NIPCO Gas Limited to roll out CNG stations nationwide, providing a cheaper and cleaner fuel option.

The project is structured in two phases: intra-city phase (Q1 2024): 21 CNG stations to support urban transportation.

This was expected to be operational in the First Quarter (Q1) of 2024 and intercity phase: 35 stations to serve long-distance travel, promoting CNG use beyond cities in the country.

The NNPC Retail arm also has planned 56 more stations, while NIPCO Gas already runs 14 CNG stations nationwide, according to report.

‘CNG is last hope for ordinary Nigerians’

Among other Nigerians, who hold the same sentiment regarding the significance of the comparative affordability of CNG since its introduction, Mustapha Ahmed, a private car owner, urged the Federal Government support more consumers to embrace the CNG instead of price hikes.

Ahmed asserted: 鈥淐NG is the last hope for ordinary Nigerians. At N230, it made sense. Increasing it now, while we are still asking for more filling stations and incentives, is unfortunate,鈥� he said.

In his remarks on the development, Uche Ogbu, a commercial vehicle driver, acknowledged that he expected a CNG price increase, but not so soon as the government had done.

Ogbu stated: 鈥淲e just started enjoying the benefits. If it rises again beyond N380, many of us taxi drivers may abandon it.”

Bassey Effiong, also a driver, relating his recent experience in the CNG energy sub-sector, said he recently installed an extra CNG cylinder to reduce refilling stress, only to be hit by the price hike.

Effiong, however, said: 鈥淚t feels like wasted money. My appeal is that the government should ensure stability at least.鈥�

In Edo State, motorists also confirmed the CNG price had jumped from N200 to N380, report said.

Monday Okosun, one of the drivers in the state, disclosed that he now spends N6,000 to fill his cylinder, up from N4,000 before the hike.

Despite the latest increase, Okosun yet confirmed that CNG energy alternative is still cheaper than Premium Motor Spirit (PMS), otherwise known as petrol.

The motorist also explained: 鈥淚 converted my vehicle to CNG because it was cheaper than fuel.

鈥淚 hope it doesn鈥檛 end up like petrol that skyrocketed. “When I was using PMS, I spent between N20,000 and N22,000 to fill my tank.”

In the opinion of Sunday James, another motorist, who operates along Airport Road, in the FCT, said he paid N380 per kg after the price hikes.

For James Odion, who plies Agbor Road, CNG is still the best option for commercial vehicles in the country’s energy ecosystem.

Odion noted it costs about N5,800 to fill his vehicle’s tank, but he lamented the scarcity of stations in Benin City, Edo State capital.

He also stated: 鈥淲e have only about three or four CNG stations in the city.

鈥淒rivers spend several hours queuing before getting the product. Despite that, it鈥檚 still better than fuel because I make more money now.”

Several other drivers have appealed to the Nigerian Government to expand CNG infrastructure, especially in Benin, to reduce the long waiting time at the few available stations.

The experience of Kano drivers

In Kano, where the Federal Government launched a CNG conversion centre amid celebration, October 2024, motorists claimed adoption of CNG energy alternative, however, remains minimal in the commercial hub of Northern Nigeria.

A driver also commented: 鈥淚 have listened to several stories on the radio, but as a driver, I have never seen any CNG-powered vehicle.

“Many people are in the same situation, which is why the discussion around CNG is mostly based on hearsay, leaving many doubtful about its practicality.”

In Kaduna State, the CNG conversion centre at the Nigerian Institute of Transport Technology (NITT) is operational, with both commercial and private vehicles occasionally seen being converted, a report noted.

However, most vehicle owners who have adopted CNG said the challenge was not the cost but the availability of the fuel.

Malam Aminu Yaya, one of the vehicle owners, said: 鈥淚 converted my car, but the main issue is accessing CNG when needed.

鈥淭hat is why many people have abandoned the option and gone back to using petrol.鈥�

The situation is different in Jigawa State, as there is currently no functional Federal Government-owned CNG conversion centre.

It is recalled the Jigawa State Governor, December 2024, had approved N117 million for the establishment of a pilot CNG conversion and training facility in Dutse, the state capital.

Across the North-West, only Kano and Jigawa have CNG conversion centres, while Sokoto, Katsina, Zamfara, and Kebbi States still lack any federal government-established centres, report said.

Lagos drivers downplay impact

It was gathered that several motorists in Lagos declared that CNG remains the cheaper option despite the current price hikes.

Joshua John, a commercial driver using a 65kg CNG cylinder, described the recent price adjustment as “minimal”.

John said his daily refill cost had increased from N3,600 to N5,700, but insisted CNG remains cheaper than fuel.

He urged the Federal Government to expand filling stations to reduce long queues.

The CNG consumer also stated: 鈥淚t鈥檚 better than fuel. If CNG were as widely available as fuel, it would have been perfect.

鈥淩ight now, we queue before buying. If it were as easy as refueling with petrol, it would be better.”

The price increase would not affect transport fares, he said, noting that CNG drivers would charge the same rates as fuel users.

Olakitan Olumide, who runs his vehicle on both petrol and a 45kg CNG cylinder, said CNG remains more economical.

鈥淚 used to spend N3,500 on CNG and N5,000 on fuel daily. CNG is a hundred percent better,鈥� he said, also calling for more filling stations in Lagos.

For Julius Ogwu, who converted his vehicle in February this year, the benefits remain clear.

Ogwu explained that 26 SCM of CNG covers about 100 kilometres, which he described as profitable despite the price rise.

He also noted: 鈥淚 have been benefiting since it was N230.

“The increase is negligible. With my V8 engine, fuel costs far more. CNG is very efficient.”

On CNG price differentials

It is equally noted that CNG price disparities have persisted since the introduction of CNG in Nigeria.

It is recalled that in October 24, 2023, Greenville LNG launched the country鈥檚 first Liquefied Compressed Natural Gas (L-CNG) station in Kaduna, Northern Nigeria, where Liquefied Natural Gas (LNG) is converted into CNG for vehicles.

However, since its launch, Greenville has consistently sold CNG above the regulatory price of N230 per standard cubic meter (SCM), charging over N400, according to report.

Similarly, Shafa Energy, after inaugurating its station in Abuja, sold at N350 per SCM before being shut down over its refusal to comply with the regulated price.

The recent hike to N380 per SCM now raises speculation that Shafa may resume operations.

Similarly, Bovas CNG had completed installation and was ready to commence sales, but held back after seeking to sell above the official rate a time.

Why price may hit N520 per SCM 鈥揝takeholders

Meanwhile, stakeholders in Nigeria鈥檚 Compressed Natural Gas sub-sector have warned that retail prices of the energy product may rise to about N520 per standard cubic metre (SCM) in order to attract substantial private investment into the industry.

They reportedly said though CNG remains cheaper than petrol and diesel, current regulated rates are “not commercially viable enough” to expand the current CNG infrastructure across the country.

At present, some CNG stations sell between N230 and over N500 per SCM.

Filling a 65kg CNG cylinder requires about 13 to 15 SCM, enough to power a vehicle for roughly 100 kilometres, report noted.

By comparison, petrol or diesel vehicles need about 15 to 18 litres for the same distance.

Industry experts said this cost advantage for drivers is clear, but investment incentives remain weak.

Chinedu Basil, energy consultant, said: 鈥淭he current CNG price of N230 is not sustainable.

“If the price rises above N520 per SCM, it would create commercial viability and attract more foreign and local investments.”

Certain Abdullahi Kabiru, a gas development specialist, also noted that CNG adoption depends heavily on pricing.

Kabiru explained that at the lowest rate of N230 per SCM, drivers enjoy huge savings compared to petrol and diesel.

He also stated: 鈥淓ven if the price rises to around N407 per SCM, CNG still delivers about 104% savings compared to petrol.”

Industry stakeholders yet said.the path to scaling up CNG would depend on balancing affordability for energy consumers with attractive returns for investors.

They maintained that without a viable pricing framework, the Federal Government鈥檚 overarching objective of making CNG as accessible as petrol and diesel for consumers would face major setbacks in the Nigerian economy.

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