The Federal Government has distanced itself from the recent price increases for Compressed Natural Gas (CNG), stating that private sector investors are responsible for the adjustments. The government's position, communicated through the Presidential Compressed Natural Gas Initiative (PCNGI), comes amid public outcry and reports of a sharp rise in the cost of the alternative fuel.
Clarifying the Price Surge
In a statement released on Thursday, September 4, 2025, Matilda Johnson, the PCNGI's Brands and Corporate Communications Manager, addressed what the initiative called "misleading and outright false reports." The statement emphasized that the recent price hikes, which have seen the cost of a standard cubic meter of CNG jump from N230 to as high as N450 in some locations, are "purely private-sector decisions and not the outcome of any government directive or policy."
The PCNGI clarified that its mandate, as directed by President Bola Ahmed Tinubu, is to "catalyse the development of the CNG mobility market," promoting it as a more affordable and cleaner alternative to Premium Motor Spirit (PMS) and diesel. The government asserts that while pricing falls under the purview of regulatory agencies, no official directive has been issued to alter CNG pump prices.
Private Investment and Future Projections
The government highlighted the significant private sector interest in the CNG market, noting that the sector has already attracted nearly $1 billion in investments. This influx of capital, according to the PCNGI, underscores confidence in the market's potential and its role in Nigeria's energy transition.
Despite the recent price volatility, the Federal Government reassured citizens that CNG will "always remain significantly cheaper, cleaner, and more affordable than PMS and diesel." The PCNGI's statement concluded by reiterating the government's commitment to deepening CNG penetration nationwide and encouraging broader private sector participation to ensure the fuel's availability and affordability for all.
The Unofficial Price Reality
The government's statement follows reports from Wednesday, September 3, 2025, that revealed a significant price increase for CNG. Our correspondent gathered from retailers that the cost of one standard cubic meter had risen to N450. Retailers cited a government review and a reduction in subsidies as the reason for the hike, a claim the government now refutes.
While some reports suggested a uniform price, it was learned that prices vary, with trucks paying the higher N450/SCM, while car and commercial drivers still benefit from a partial subsidy, paying around N380 for the same volume. Efforts to get a comment from the Programme Director of the PCNGI, Michael Oluwagbemi, were unsuccessful, although an unnamed official confirmed the new prices to a correspondent on the condition of anonymity.
The conflicting reports and the government's firm denial of any direct involvement in the price increases leave consumers in a state of uncertainty about the future of this promised cheaper alternative.