Nigeria’s CNG Conversion Programme Stalls At 12% As Fuel Costs Hit N58.6 Trillion

Nigeria’s CNG Conversion Programme Stalls at 12% as Fuel Costs Hit N58.6 Trillion Nigeria’s compressed natural gas CNG conversion programme has stalled at about 12 per cent, raising concerns over the Federal Government’s target of converting one million vehicles to CNG by 2027. The development comes as Nigerians continue to face mounting fuel and transportation costs following the removal of the petrol subsidy in May 2023. According to the latest report, Nigerians have spent an estimated N58.6 trillion on petrol since the subsidy was removed, while the CNG initiative has yet to achieve the scale required to significantly reduce petrol consumption and transportation costs. The Presidential Compressed Natural Gas Initiative P-CNGi said it has certified more than 400 conversion centres, established over 90 refuelling stations, trained more than 7,700 technicians and converted over 120,000 vehicles. However, the programme has faced criticism over inadequate infrastructure, long queues at existing CNG stations, limited availability of conversion centres and the cost of converting vehicles. The Federal Government had earlier targeted the rollout of 500 additional CNG refuelling stations, but only about 90 stations have reportedly been established in roughly three years. The slow adoption has raised concerns about whether the government can achieve its target of converting one million vehicles by 2027, particularly as motorists continue to grapple with high petrol prices. The report also highlighted rising transportation costs across the country. Average intra-city bus fares reached N1,431.25 per trip in May 2026, while intercity bus fares climbed to N9,699.55. Stakeholders have blamed poor planning, inadequate infrastructure and the high cost of conversion for the slow progress, while calling for stronger partnerships with private operators to expand CNG infrastructure. The Federal Government has approved import duty and VAT exemptions for CNG, LPG and electric vehicles as part of efforts to encourage cleaner and cheaper alternatives to petrol. With the deadline for the one-million-vehicle target approaching, questions remain over whether the CNG programme can expand quickly enough to provide meaningful relief to Nigerians facing rising fuel and transportation costs.