FG steps up CNG push, targets one million gas-powered vehicles

KEY POINTS

• The Federal Government has directed agencies to accelerate the rollout of one million CNG-powered vehicles nationwide.
• Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, says the programme should deliver lower transport costs for Nigerians.
• Domestic gas supply has reportedly exceeded two billion cubic feet per day for the first time in Nigeria’s history.
• Pi-CNG & EV and the Decade of Gas Secretariat are expected to increase investment, expand refuelling infrastructure and support vehicle conversions.

MAIN STORY

The Federal Government has directed agencies overseeing Nigeria’s compressed natural gas (CNG) programme to intensify efforts to expand refuelling infrastructure, increase vehicle conversions and accelerate the rollout of one million CNG-powered vehicles nationwide.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, gave the directive in Abuja while receiving progress reports from the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV) and the Decade of Gas Secretariat.

In a statement issued on Sunday, Ekpo tasked both bodies with prioritising interventions, mobilising investment and strengthening nationwide adoption programmes to expand the use of CNG as an alternative transport fuel.

He said the Federal Government’s Auto CNG policy must produce tangible benefits, particularly by reducing transport fares following the removal of the petrol subsidy.

According to the minister, Nigeria’s natural gas resources provide an opportunity to reduce transportation costs, increase domestic gas consumption and support economic growth while offering an alternative to conventional transport fuels.

Ekpo stressed that achieving wider adoption would require sustained investment in refuelling stations, vehicle conversion facilities and other essential infrastructure.

He commended the leadership of Pi-CNG & EV for the progress made so far and pledged continued government support for the initiative.

The minister also pointed to growth in domestic gas consumption, saying supply had exceeded two billion cubic feet per day for the first time in Nigeria’s history.

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

Ekpo said the CNG programme aligned with President Bola Tinubu’s directive to make transportation more affordable through the use of natural gas.

“It is important that we listen to the directive of Mr President to make transportation cheaper via CNG,” he said.

“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,” he added.

The Chairman of Pi-CNG & EV, Ismaeel Ahmed, said the initiative would work to attract more investment, expand refuelling infrastructure and increase vehicle conversions across the country.

He said these efforts were intended to support broader adoption of CNG and help reduce transport fares for millions of Nigerians.

Ahmed also identified a joint industry market study conducted by the Decade of Gas Secretariat as a framework for accelerating implementation, monitoring progress and identifying gaps in the programme.

The Coordinator of the Decade of Gas Secretariat, Ed Ubong, described CNG as an important component of Nigeria’s energy transition. He pledged continued support for efforts to increase domestic gas utilisation and exports for the benefit of Nigerians and investors.

THE ISSUES

The government’s one million vehicle target signals an effort to expand CNG beyond individual projects and establish a wider alternative-fuel market. However, achieving the target will depend on the pace of vehicle conversions, the availability of refuelling stations and the ability of motorists and transport operators to afford the switch.

For commercial transport operators, the cost of converting vehicles, access to reliable refuelling facilities and the time needed to recover conversion expenses will influence adoption. Any reduction in operating costs would also need to translate into lower fares for passengers to deliver the public benefit identified by the government.

The reported increase in domestic gas supply provides an important backdrop to the programme, but supply growth alone does not guarantee that CNG will be consistently available at stations across the country. Infrastructure distribution, supply logistics, pricing and operational reliability will remain critical.

The initiative also requires clear implementation benchmarks. Progress will be easier to assess if the government reports how many vehicles have been converted or deployed, how many stations are operational, how investment is progressing and whether transport costs have fallen in areas where CNG adoption has expanded.

WHAT’S BEING SAID

“Nigeria is a gas nation with a gas reserves index of over 80 years, and that is why we are talking about the Decade of Gas.” – Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas)

“It is important that we listen to the directive of Mr President to make transportation cheaper via CNG.” – Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas)

“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.” – Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas)

WHAT’S NEXT

The next stage will be to translate the directive into measurable progress on vehicle conversions, refuelling infrastructure and investment. The government’s ability to coordinate the work of Pi-CNG & EV and the Decade of Gas Secretariat will be important to expanding adoption beyond existing markets.

Motorists and transport operators will also be watching whether CNG becomes sufficiently accessible and affordable to make switching from petrol and diesel commercially worthwhile.

BOTTOM LINE

The Federal Government is stepping up its CNG programme with a target of one million gas-powered vehicles nationwide. The initiative could provide an alternative to petrol and diesel, but its success will depend on infrastructure expansion, affordable conversions, reliable gas supply and evidence that the savings reach transport operators and passengers.