Nigeria is accelerating its shift to cheaper transport alternatives like Compressed Natural Gas (CNG) as rising petrol prices continue to strain households and businesses. The move comes amid global oil disruptions linked to tensions involving the United States, Israel, and Iran, which have pushed fuel costs higher and worsened inflation.
CNG is being promoted as a more affordable option, with experts estimating it could cut transport costs by up to 40% if widely adopted. The federal government has also set ambitious targets to convert up to one million vehicles to CNG by 2027 under its national energy transition plan.
The initiative is seen as a key strategy to reduce dependence on petrol, lower transportation costs, and cushion the economic impact of subsidy removal. It also aligns with broader efforts to leverage Nigeria’s vast natural gas reserves for domestic use.
Infrastructure Gaps and Costs Limit Adoption
Despite the promise, adoption has been slow due to major structural challenges. Limited refuelling stations, high conversion costs, and low public awareness continue to hinder widespread use.
Converting vehicles to CNG can cost between $100 and $1,000—an upfront expense many transport operators struggle to afford. In addition, the number of conversion centres and CNG stations remains insufficient, especially outside major cities, forcing many drivers to stick with petrol.
Experts warn that without urgent investment in infrastructure, financing support, and regulatory reforms, the programme may fail to deliver meaningful relief. Expanding access to stations, standardising conversion systems, and improving pricing transparency have been identified as critical steps.
While the transition to CNG holds long-term potential, its immediate impact on transport costs remains limited. For now, many Nigerians continue to face high commuting expenses as the country navigates its energy transition amid global uncertainty.
