ABUJA — The Federal Government has launched a major push for compressed natural gas vehicles as a key strategy to reduce transportation costs across Nigeria. Champion Newspapers reported the initiative on Monday. Officials said CNG vehicles can cut fuel costs by up to 60 percent compared to petrol-powered alternatives.
Nigeria has significant natural gas reserves, far larger than its crude oil reserves in energy equivalent terms. However, gas has historically been underutilised domestically. The CNG vehicle initiative aims to redirect some of that natural advantage toward reducing the cost of the transportation sector, which affects prices across the entire economy.
The Minister of Gas and Power said the government is working to expand the network of CNG refuelling stations across the country. He said without a reliable refuelling infrastructure, even the most affordable CNG vehicles will not be adopted by drivers who cannot count on being able to fill their tanks.
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Pilot Program Results
A pilot CNG bus program launched in Lagos and Abuja has shown promising results. Operators who converted their vehicles to CNG reported significantly lower fuel costs and improved operating margins. Several bus owners said CNG conversion paid for itself within 18 months of operation.
However, the upfront cost of CNG conversion remains a barrier for many vehicle owners. The government said it is working on a subsidised conversion program that will make CNG retrofitting affordable for commercial vehicle operators, particularly in the high-volume intercity and commuter bus markets.
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Transport unions said they support the CNG initiative in principle but want the government to guarantee a stable and fairly priced CNG supply before committing members to mass conversion. They said past fuel policy changes have sometimes left operators exposed to sudden price increases or supply shortfalls.
