FG renews push for one million CNG vehicles to reduce transport fares

By Diden Abigail Owuntarose

The Federal Government has renewed efforts to deploy one million compressed natural gas (CNG)-powered vehicles across the country as part of measures to reduce transportation costs and ease the financial burden on Nigerians.

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, Ekpo directed officials to accelerate investments in refuelling infrastructure, expand vehicle conversion programmes and identify interventions that would make CNG more accessible to transport operators.

The renewed push comes amid continued concerns over high transport fares following the removal of the petrol subsidy in 2023, which increased operating costs for commercial transport operators and placed additional pressure on household incomes.

CNG has been promoted by the government as a cheaper alternative to petrol, with the potential to reduce fuel expenses for transport operators. However, the extent to which those savings translate into lower fares depends on the availability of refuelling stations, affordable vehicle conversions, reliable gas supplies and operators passing the savings on to passengers.

Ekpo said Nigeria’s abundant natural gas resources presented an opportunity to reduce transportation costs, increase domestic gas consumption and stimulate economic growth.

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He stressed the need to implement President Bola Tinubu’s directive to make transportation more affordable through alternative fuels, adding that the government would continue supporting the initiative.

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.

Ahmed said a joint industry market study conducted by the Decade of Gas Secretariat had provided a framework for accelerating implementation, monitoring progress and identifying infrastructure gaps.

The Coordinator of the Decade of Gas Secretariat, Ed Ubong, also described CNG as an important component of Nigeria’s energy transition, pledging continued support for increased domestic gas utilisation and private-sector investment.

The Federal Government introduced the CNG programme following the removal of the petrol subsidy to encourage motorists and transport operators to adopt alternative fuels and reduce their exposure to petrol price fluctuations.

However, the expansion of the programme faces challenges, including uneven distribution of refuelling stations, the cost of converting vehicles and the need to ensure a reliable supply of gas.

In a report published earlier this month, The Punch noted that implementation of the government’s transport-fare reduction initiative remained uneven, with some commuters yet to benefit from lower fares despite investments in alternative-energy transportation.

The Federal Government’s renewed target will therefore depend on sustained cooperation among government agencies, state governments, gas suppliers, conversion centres and transport operators.

Ultimately, the success of the initiative will be measured not only by the number of vehicles converted or refuelling stations established, but also by whether commuters experience a meaningful reduction in the cost of their daily journeys