FG says $2bn CNG investment will cut transport and fuel costs

The Federal Government has attracted more than $2 billion in investments for Compressed Natural Gas (CNG) infrastructure. Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the goal is to reduce transportation costs and promote cleaner energy.

Ekpo spoke through his spokesperson, Louis Ibah, in a statement issued on Tuesday. He said the investments are already reshaping Nigeria's transport fuel market.

Key figures from the CNG programme

More than 120,000 vehicles have been converted to CNG through over 400 certified conversion centres. Over 90 refuelling stations are now operational across the country.

The government has trained over 7,700 automotive technicians. The programme has also generated more than 10,000 direct and indirect jobs.

Around 655 CNG-powered buses and 5,123 CNG tricycles have been procured and deployed. Thousands of privately converted vehicles are also running on CNG within commercial and public transport networks.

Ekpo said these numbers show CNG is no longer just a proposed alternative. It is becoming a practical option for Nigerians.

Why the government is pushing CNG

The CNG programme is part of the Federal Government's response to rising transport and living costs after petrol subsidy removal. Ekpo said commercial transport operators, private motorists and fleet managers are recording significant fuel savings.

Commuters using CNG-powered buses are also beginning to benefit from lower transport fares.

“The objective is not simply to increase the number of CNG vehicles and refuelling stations, but to translate fuel savings into lower transportation and logistics costs, ease the cost of living and improve economic productivity,” Ekpo said.

He said reduced vehicle operating costs could have wider benefits for commuters, businesses, farmers, traders and other productive sectors.

500 more stations approved

President Bola Ahmed Tinubu has approved the establishment of an additional 500 CNG refuelling stations. That will raise the national network to 1,000 stations.

Ekpo said the expansion will significantly improve access to CNG and encourage more Nigerians to switch from conventional fuels. He added that continued infrastructure growth is crucial to sustaining the momentum of CNG adoption.

The minister praised Tinubu for the approval, saying it will help translate cheaper fuel into reduced transportation costs across the economy.

For Nigerian businesses and commuters, the growth of CNG infrastructure points to lower operating costs for transporters and potentially cheaper fares. It also offers a cleaner alternative to petrol and diesel as the government pushes its post-subsidy energy agenda.