With rising transportation costs continuing to weigh on household incomes, the Federal Government has renewed efforts to expand the adoption of compressed natural gas-powered vehicles, directing key agencies to accelerate infrastructure development and vehicle conversion programmes nationwide.
The 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, the government is seeking to translate its autogas policy into tangible economic benefits, particularly through lower transportation fares following the removal of the petrol subsidy.
The statement said the renewed drive would focus on expanding refuelling infrastructure, increasing investment and strengthening programmes to achieve the target of deploying one million CNG-powered vehicles across the country.
“The Federal Government has pledged to intensify efforts to promote compressed natural gas as a cheaper alternative fuel for transportation, with a renewed focus on accelerating the rollout of one million CNG-powered vehicles across the country,” the statement read.
The renewed push comes against the backdrop of higher transport costs since the removal of the petrol subsidy in 2023, which increased fuel expenses for commercial transport operators and added to the financial pressure on commuters.
CNG has been promoted as an alternative to petrol because of its potential to reduce fuel expenses for vehicle owners and transport businesses. However, widespread adoption will depend on the availability of refuelling stations, affordable conversion services, reliable gas supplies and the extent to which operators pass cost savings on to passengers.
Ekpo said Nigeria’s substantial natural gas reserves presented an opportunity to reduce transportation expenses while increasing domestic gas utilisation and supporting economic growth.
“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.
Emphasising the need to implement President Bola Tinubu’s directive on affordable transportation, the minister assured officials overseeing the programme of the government’s continued support.
“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.
He urged the Presidential Initiative on CNG and Electric Vehicles and the Decade of Gas Secretariat to sustain investment in refuelling stations, vehicle conversion centres and other infrastructure required to expand the use of gas as a transport fuel.
The minister also commended progress recorded under the current leadership of the Presidential Initiative, reiterating the government's commitment to supporting the programme.
Highlighting developments in the domestic gas market, Ekpo noted that Nigeria’s gas consumption had risen above two billion cubic feet per day for the first time in the country’s history. He described the development as an opportunity to deepen domestic utilisation and advance the government’s broader gas development agenda.
The Chairman of the Presidential Initiative on CNG and Electric Vehicles, Ismaeel Ahmed, said the initiative would intensify investments and programmes to expand refuelling infrastructure and increase the number of vehicles converted to run on gas.
 |
| The Chairman of the Presidential Initiative on CNG and Electric Vehicles, Ismaeel Ahmed, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo and the Coordinator of the Decade of Gas Secretariat, Ed Ubong, during the meeting. CREDIT: MPR |
He also disclosed that 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.
According to him, the study would guide the government and industry stakeholders in identifying priority interventions and coordinating efforts to make CNG more widely available as a transportation fuel.
The Coordinator of the Decade of Gas Secretariat, Ed Ubong, described CNG as an important component of Nigeria’s energy transition, pledging the secretariat’s continued support for the presidential initiative.
Ubong said the secretariat would continue to promote domestic gas consumption and export utilisation, with a view to delivering economic benefits to Nigerians while creating opportunities for investors.
The Federal Government introduced its CNG programme as part of efforts to cushion the impact of petrol subsidy removal by encouraging motorists and transport operators to switch to alternative fuels. The initiative includes support for vehicle conversions, the development of refuelling facilities and the expansion of gas distribution infrastructure.
However, achieving the one-million-vehicle target will require sustained investment, reliable gas supply and effective coordination among government agencies, gas suppliers, conversion centres and transport operators.
Ultimately, the extent to which the initiative delivers relief to commuters will depend not only on the number of vehicles converted but also on whether lower operating costs translate into more affordable fares across the country.