Compressed Natural Gas (CNG) in Nigeria may soon retail at about ₦520 per standard cubic metre (SCM) to keep fueling stations commercially viable, according to industry experts.
The Federal Government recently fixed CNG at ₦380/SCM nationwide effective September 1, 2025, but analysts argue the price leaves little incentive for private investors. A higher benchmark could ensure sustainable infrastructure while still keeping CNG cheaper than petrol and diesel.
Adoption remains slow, with only 50,000 vehicles converted by early 2025, against a target of 1 million by 2027. Fewer than 60 stations are currently operational, though about 150 more are planned this year.
Motorists report major savings: an Abuja driver cut daily fuel costs from ₦20,000–₦30,000 on petrol to ₦3,500 on CNG. Yet users also complain about long refueling detours and limited stations.
Experts say expanding pipeline-fed infrastructure, as seen in India, will be critical if Nigeria is to make CNG both affordable for consumers and profitable for investors.