As petrol prices in Nigeria soar to between N1,340 and N1,400 per litre, commercial transport operators are increasingly turning to compressed natural gas (CNG) to cut costs. The shift follows President Bola Tinubu's removal of petrol subsidies in May 2023, which led to a sharp rise in fuel prices. In response, the government launched the Presidential Compressed Natural Gas Initiative (Pi-CNG), aiming to convert over 11,500 vehicles and provide 55,000 conversion kits. CNG currently sells for about N380 per kilogramme, offering significant savings for drivers.
Transport operators who have switched to CNG report lower operating expenses and cheaper fares for passengers. Lawal Adeyinka, chairman of a transport park in Lagos, said CNG reduces his petrol expenses from N45,000 to N6,000 for similar trips. However, long queues at CNG stations and the high cost of converting vehicles remain major challenges. Adeyinka noted that queuing delays affect the number of trips drivers can make daily.
The cost of converting vehicles to CNG has risen from N900,000 to about N1.35 million, deterring many drivers. Lukman Kareem, a commercial driver, said the conversion cost is a significant barrier. Despite this, drivers like Ebube, who operates between Berger and Ajah in Lagos, have seen their petrol expenses drop from N50,000 to N15,000 daily. Access to CNG stations remains a critical issue, with drivers often spending hours in queues.
Energy law expert Dayo Ayoade highlighted the high cost of establishing CNG refuelling stations and unreliable gas supply as major constraints. He called for improved financing arrangements, investment incentives, and public-private partnerships to expand CNG access. On August 27, 2026, President Tinubu ordered the rollout of an additional 500 CNG refuelling stations nationwide, aiming to address these challenges.