The Federal Government has distanced itself from the recent spike in Compressed Natural Gas (CNG) pump prices, insisting that the decision came from private operators rather than an official directive.
In a statement issued in Abuja on Thursday, Matilda Johnson, Brands and Corporate Communications Manager of the Presidential Compressed Natural Gas Initiative (PCNGI), said reports linking the increase to government policy were “false and misleading.”
According to her, CNG remains central to President Bola Tinubu’s energy transition drive, designed to provide motorists with a cheaper and cleaner alternative to petrol and diesel.
“No directive or policy has been issued by the Federal Government to alter CNG pump prices nationwide,” Johnson clarified, stressing that the adjustments made by certain marketers were strictly private-sector decisions.
Market realities and price surge
Until recently, motorists purchased CNG at an average of ₦230 per Standard Cubic Metre (SCM). However, some operators have now raised the price to around ₦380/SCM, and in certain locations above ₦400/SCM. This escalation has stirred public concern, with many questioning whether the government quietly removed subsidies.
PCNGI dismissed such claims, pointing instead to market forces and operational costs faced by private distributors. The initiative stressed that pricing oversight remains under the purview of regulatory agencies, not direct government intervention.
Investments shaping the sector
Nigeria’s CNG rollout has attracted nearly $1 billion in private capital, fuelling the establishment of more than 65 daughter stations across 21 states by mid-2025. With over $450 million already committed, stakeholders say the confidence reflects the long-term viability of gas as a mobility solution.
Still, adoption rates remain lower than projected. Only about 50,000 vehicles had been converted to CNG by January 2025, far below the target of one million by 2027. The government has attempted to accelerate uptake with free conversion schemes in Lagos, Ogun, Oyo, and Rivers, alongside the deployment of CNG-powered buses.
Balancing affordability and sustainability
Energy analysts argue that while CNG must remain cheaper than petrol and diesel to win public trust, modest price adjustments may be necessary to ensure commercial sustainability. The government insists its focus is to deepen penetration, widen private-sector participation, and safeguard affordability for Nigerians.
Industry observers note that the challenge lies in striking a balance: keeping CNG attractive to motorists while ensuring investors recover costs in a market still in its infancy.