Compressed Natural Gas (CNG) in Nigeria may need to sell at about N520 per standard cubic metre (SCM) for operators to keep gas stations and supporting infrastructure commercially viable, according to a recent Nairametrics report.
The report, titled Nigeria’s Gas Future: CNG Retail May Hit N520/SCM to Ensure Commercial Viability, noted that while CNG is cheaper than petrol and diesel, current pricing levels “are not sufficient to attract large-scale private investment” required to expand refuelling stations and ensure nationwide availability.
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Despite government-backed initiatives, adoption has been slower than expected. Nearly two years after the removal of petrol subsidies drove demand for alternatives, only about 50,000 vehicles currently run on CNG—well below the government’s 2027 target of one million.
As of January 2025, just over 50 CNG stations were operational across the country, although more than 150 are expected by the end of the year. The number of daughter stations has grown from 20 to over 65, bringing in more than $450 million in investment and training over 2,500 technicians.
Distribution, however, remains a major challenge, as most of it depends on trucks. Transport researcher Tonami Playman told Nairametrics: “A CNG truck can transport 9,000 kilograms of gas, while a tanker truck carries 33,000 litres of petrol. To move the same amount of energy, we would need 3.6 times more trucks, increasing traffic and accident risks significantly.”
Early adopters have already started recording savings. Abuja-based e-hailing driver Samuel Udedike explained: “I now pay N230 per SCM to refill my cylinder. With about N3,500 worth of CNG I can cover the day’s trips that some colleagues cover on petrol or diesel, which often costs them N20,000 to N30,000.”
Another driver, Lagos-based Soji Tope, noted: “CNG is cheaper, but stations are not as many as regular filling stations. Even so, the savings make the inconvenience worthwhile.”
Passengers are also benefitting. In January 2025, traveller Blessing Ogbebor paid N18,000 for a CNG-powered bus trip from Lagos to Warri, compared to over N25,000 on petrol or diesel. However, her journey included a 30-minute detour in Benin to refuel, highlighting the infrastructure gap.
According to government sources, as of September 1, 2025, the official price of CNG for passenger vehicles was set at N380 per SCM in Abuja and Lagos, with the same rate already applied elsewhere. This was an increase from the earlier lowest price of N230 per SCM, aimed at narrowing wide disparities in pricing.
While Nigeria’s CNG rollout still faces a significant gap between ambition and reality, experts maintain that with the nation’s 209 trillion standard cubic feet of proven gas reserves, the sector could grow rapidly if pricing, investment, and infrastructure issues are addressed.
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