FG Targets Lower Transport Costs as CNG Investments Exceed $2bn, 120,000 Vehicles Converted

The Federal Government has reaffirmed its commitment to expanding the use of Compressed Natural Gas (CNG) across Nigeria as part of efforts to reduce transportation costs, ease economic pressures on citizens and promote cleaner energy alternatives.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, made the commitment on Tuesday, highlighting the significant progress recorded since the launch of the Presidential Initiative on Compressed Natural Gas (Pi-CNG) in 2023.

According to a statement issued by his spokesman, Louis Ibah, the government, working with private investors and other stakeholders, has attracted more than $2 billion in investments into CNG infrastructure and value-chain development.

The investment, the statement noted, has accelerated the expansion of critical infrastructure, including refuelling stations, vehicle conversion centres and technical support systems required to drive nationwide adoption of CNG.

The minister disclosed that more than 120,000 vehicles have so far been converted to run on CNG through a network of over 400 certified conversion centres and more than 90 refuelling stations spread across the country.

He added that the programme has also strengthened local capacity, with over 7,700 automotive technicians trained to support the growing CNG industry.

In addition, the initiative has generated more than 10,000 direct and indirect jobs while facilitating the procurement and deployment of 655 CNG-powered buses and 5,123 tricycles to boost public transportation.

Ekpo said the increasing number of converted vehicles and expanding infrastructure demonstrate that CNG is no longer a future prospect but a practical and viable fuel alternative already transforming Nigeria’s transport sector.

According to him, the programme has become a key component of the federal government’s strategy to cushion the impact of rising transportation costs following the removal of fuel subsidy.

The minister noted that growing acceptance of CNG among commercial transport operators, private vehicle owners and fleet managers is further proof of the initiative’s success.

He explained that users of CNG-powered vehicles are already enjoying significant savings on fuel expenses, while commuters using CNG buses are benefiting from lower transport fares.

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“As more vehicles and fleets migrate to CNG, lower operating costs are beginning to translate into real benefits for commuters, businesses, farmers, traders and other productive sectors of the economy,” he said.

Ekpo stressed that the government's objective extends beyond increasing the number of converted vehicles and refuelling stations.

According to him, the broader goal is to ensure that fuel cost savings are reflected in lower transportation and logistics expenses, helping to reduce the cost of living and improve economic productivity nationwide.

To sustain the momentum, he said the ministry is collaborating with the Presidential CNG Initiative, the Midstream and Downstream Gas Infrastructure Fund (MDGIF), state governments, transport unions, investors and other stakeholders to expand infrastructure and improve access to CNG services.

He revealed that ongoing efforts include the development of dedicated CNG corridors and the extension of refuelling and conversion facilities to underserved communities across the country.

The minister also commended President Bola Tinubu for approving the establishment of an additional 500 CNG refuelling stations, a move that will increase the planned national network to 1,000 stations.

He described the directive as a major boost for the programme, saying it would significantly improve access to CNG and accelerate adoption nationwide.

Ekpo further praised state governors that have embraced the initiative through strategic partnerships and investments, while encouraging others to join the programme to help deliver affordable transportation to Nigerians.

He assured that the federal government would continue to engage investors and industry stakeholders to fast-track infrastructure deployment, deepen domestic gas utilisation and ensure that the benefits of the CNG programme are felt across all levels of society.

The minister maintained that expanding access to affordable and cleaner energy remains central to the government’s efforts to improve living standards and support sustainable economic growth.