FG Targets 1m CNG Vehicles To Reduce Transport Fares

The federal government has renewed efforts to deploy one million compressed natural gas (CNG)-powered vehicles across Nigeria, directing officials to accelerate investments in refuelling stations and vehicle conversion facilities to reduce transportation costs.

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.

Ekpo said the government must ensure that its autogas policy delivers tangible benefits to Nigerians, particularly by reducing transport fares following the removal of the petrol subsidy in 2023.

According to a statement issued on Sunday by the minister’s spokesman, Louis Ibah, Ekpo tasked the leadership of the two bodies with identifying critical interventions, expanding infrastructure and strengthening programmes to increase the nationwide adoption of CNG.

The statement said the government would intensify efforts to promote CNG as a cheaper alternative fuel for transportation, with renewed emphasis on accelerating the deployment of one million gas-powered vehicles across the country.

The renewed push comes amid persistent concerns over rising public transportation costs since the removal of the petrol subsidy, which increased fuel expenses for commercial transport operators and added pressure on household incomes.

CNG has been promoted by the federal government as an alternative to petrol because it is generally cheaper on an energy-equivalent basis. However, the extent to which it can reduce transport fares depends on the availability of refuelling stations, affordable vehicle conversions, reliable gas supply and whether operators pass their fuel savings on to passengers.

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

The minister stressed the need to implement President Bola Tinubu’s directive to make transportation more affordable through CNG, assuring officials 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 investments in refuelling infrastructure, vehicle conversion facilities and other essential components required to expand the use of natural gas as a transportation fuel.

Ekpo also welcomed progress recorded under the current leadership of the Presidential Initiative on CNG and Electric Vehicles, reiterating the government’s commitment to supporting the programme.

He further disclosed that domestic gas consumption had risen above two billion cubic feet per day for the first time in Nigeria’s history, describing the development as an opportunity to deepen gas utilisation and advance the country’s economic ambitions.

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 the effort was designed to make CNG more accessible to transport operators and help reduce fares for millions of Nigerians.

He added that a joint industry market study completed by the Decade of Gas Secretariat had provided a framework for accelerating the rollout, monitoring progress, identifying infrastructure gaps and improving implementation.

According to him, the study would help the government and industry stakeholders determine priority interventions and strengthen efforts to make CNG 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 and pledged the secretariat’s continued support for the presidential initiative.

Ubong said the secretariat would continue to promote greater domestic gas consumption and export utilisation, with the aim of delivering economic benefits to Nigerians and creating investment opportunities.

The federal government introduced its CNG programme as part of efforts to cushion the effects of petrol subsidy removal by encouraging motorists and transport operators to switch to alternative fuels. The programme 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 and coordination among government agencies, gas suppliers, conversion centres and transport operators to ensure that expanded CNG adoption translates into lower operating costs and more affordable fares for commuters.