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FG Renews One Million CNG Vehicle Target to Lower Transport Costs

Samuel Suraju
BySamuel Suraju—
FG Renews One Million CNG Vehicle Target to Lower Transport Costs
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The Federal Government has directed officials overseeing its compressed natural gas (CNG) programme to accelerate vehicle conversions and refuelling infrastructure development as it renews efforts to deploy one million gas-powered vehicles and reduce transportation costs nationwide.

Minister of State for Petroleum Resources (Gas), Ekperikpe 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.

According to a statement issued on Sunday by the minister’s spokesman, Louis Ibah, Ekpo urged both bodies to prioritise interventions that would expand CNG infrastructure, attract investment and increase adoption of the alternative fuel across the country.

The initiative is intended to reduce transport operators’ fuel expenses and ease pressure on commuters following the removal of petrol subsidy in 2023, which raised the cost of running petrol-powered vehicles.

Ekpo said the government needed to turn its autogas policy into tangible benefits for Nigerians, particularly through more affordable transport fares.

“Nigeria is a gas nation with a gas reserves index of over 80 yrs, and that is why we are talking about the Decade(s) of Gas,” he said.

He also reaffirmed the government’s commitment to President Bola Tinubu’s directive to make transportation cheaper through CNG, promising continued support for the programme.

“It is important that we listen to the directive of Mr President to make transportation cheaper via CNG. We will continue to give you all the backing to provide the necessary assistance to make sure we drive this project to a logical conclusion,” Ekpo said.

The Chairman of the Presidential Initiative on CNG and Electric Vehicles, Ismaeel Ahmed, said the programme would intensify investment in refuelling facilities and vehicle conversion schemes to make gas-powered transport more accessible to operators.

Ahmed said a joint industry market study completed by the Decade of Gas Secretariat had established a framework for accelerating implementation, monitoring progress and identifying infrastructure gaps that could slow the nationwide rollout.

He said the findings would help the government and industry stakeholders determine priority interventions and strengthen efforts to make CNG more widely available as a transport fuel.

Ekpo also welcomed progress under the current leadership of the presidential initiative and urged officials to sustain work on conversion facilities, refuelling stations and other infrastructure required to expand adoption.

The renewed push comes as Nigeria’s domestic gas consumption rises. Ekpo said consumption had exceeded two billion cubic feet per day for the first time in the country’s history, describing the development as an opportunity to deepen gas utilisation and support economic growth.

The Coordinator of the Decade of Gas Secretariat, Ed Ubong, described CNG as an important component of Nigeria’s energy transition and pledged continued support for the presidential initiative.

Ubong said the secretariat would promote greater domestic gas consumption and export utilisation, with the aim of delivering benefits to Nigerians while creating opportunities for investors.

CNG has been promoted by the Federal Government as a cheaper alternative to petrol, with the potential to lower fuel expenses for transport operators. However, the extent of savings passed on to commuters will depend on the availability of refuelling stations, affordable vehicle conversions, reliable gas supply and operators’ pricing decisions.

The government launched its CNG programme following petrol subsidy removal, with measures covering vehicle conversions, refuelling infrastructure and the distribution of gas for transportation.

Achieving the renewed target of one million CNG-powered vehicles will require sustained investment and coordination among government agencies, gas suppliers, conversion centres and transport operators. The key test will be whether the expansion translates into lower operating costs and more affordable fares for commuters.

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About the Author

Samuel Suraju

Samuel Suraju

Suraju Samuel M. is a Nigerian journalist and energy sector analyst specializing in petroleum markets, downstream pricing dynamics, and energy policy. His reporting focuses on Nigeria’s oil and gas industry, including refinery operations, depot pricing movements, regulatory developments, and global oil market trends. He provides data-driven coverage of the downstream sector and its implications for energy security and market stability.

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FG Renews One Million CNG Vehicle Target to Lower Transport Costs