FG renews drive for one million CNG vehicles to cut transport costs

The Federal Government has renewed its plan to deploy one million compressed natural gas (CNG)-powered vehicles across Nigeria to reduce transportation costs. Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, directed officials to accelerate vehicle conversions and expand refuelling infrastructure.

Minister issues directive in Abuja

Ekpo gave the directive 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. A statement issued on Sunday by the minister’s spokesman, Louis Ibah, said Ekpo urged both bodies to identify priority areas for intervention, expand infrastructure and strengthen programmes to encourage nationwide CNG adoption.

He said the government was committed to ensuring the autogas policy delivers practical benefits to Nigerians, especially by reducing transportation costs after the removal of the petrol subsidy. He noted that Nigeria’s abundant natural gas resources could help lower transport expenses, boost domestic gas consumption and support economic growth.

Ekpo also stressed the need to implement President Bola Tinubu’s directive to make transportation more affordable through CNG-powered vehicles. He reaffirmed the government’s commitment to supporting the initiative and expanding access to gas as an alternative fuel for road transportation.

Infrastructure and conversion targets

The Chairman of the Presidential Initiative on CNG and Electric Vehicles, Ismaeel Ahmed, said the initiative would intensify investments and programmes to expand refuelling infrastructure and increase the number of vehicles converted to run on gas. He said the effort was intended to make CNG more accessible to transport operators and help reduce transportation costs for millions of Nigerians.

The renewed push places greater emphasis on expanding the infrastructure needed to support the target of deploying one million CNG-powered vehicles nationwide. Achieving the target will require coordinated efforts to increase conversion capacity, establish more refuelling facilities and ensure transport operators can access affordable, dependable gas supplies.

The government also plans to receive 500 CNG stations by the end of October and order another 500, with deployment based on vehicle numbers and traffic. Abuja currently leads the country with 26 operational CNG stations, but land shortages are limiting further expansion. The rollout is expected to prioritise high-demand areas, including Lagos, Kano and Port Harcourt.

What it means for transport costs

CNG is generally cheaper than petrol on an energy-equivalent basis, making it a potential cost-saving option for commercial transport operators and private motorists. The extent of the savings depends on the availability of refuelling stations, the cost of converting vehicles, a reliable gas supply and whether transport operators pass reduced fuel expenses on to passengers through lower fares.

The government hopes wider CNG adoption will give motorists a cheaper alternative to petrol while easing the financial pressure of rising transport costs on households and businesses.