Nigeria's Transport Fares Defy CNG Cost Advantage

Nigeria's transport fares remain stubbornly high despite the cost advantage of compressed natural gas (CNG), according to operators. CNG is substantially cheaper than petrol or diesel, but commuters are not feeling the relief at the motor park.

The issue lies in structural bottlenecks, including severe refueling station deficits and steep vehicle conversion costs. The high capital intensity of setting up compression facilities and storage systems means private investors tread cautiously.

Nigeria's nascent gas infrastructure is plagued by a massive geographic supply shortfall, with only a fraction of required retail compression and dispensing stations operational nationwide.