FG Launches National Plan To Curb CNG Price Fluctuations

The federal government has launched a new national supply framework designed to curb fluctuations in compressed natural gas (CNG) prices and expand access across Nigeria, amid rising demand for cleaner and more affordable fuel alternatives.
Unveiling the framework on Tuesday in Abuja, programme director of the Presidential Compressed Natural Gas Initiative (P-CNGi), Mr. Michael Oluwagbemi, said the plan is a coordinated national strategy developed in partnership with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company (NNPC) Limited, and the Gas Aggregation Company of Nigeria (GACN).
“In an economy where gas is used for multiple purposes, there was potential for arbitrage,” Oluwagbemi said. “This framework prevents that by creating a proper market for auto CNG — where demand, payment, and supply are all structured.”
According to him, the framework introduces a cost-reflective and transparent pricing mechanism that aligns with upstream costs while remaining affordable for end-users — a structure backed by NMDPRA’s concessionary pricing policy for the auto-CNG sector, approved in 2024.
He added that the number of autogas stations in Nigeria has risen from 20 in 2023 to over 65 currently, with another 28 stations under construction. “By incentivising the private sector and ensuring pricing stability, we’re delivering cleaner, more secure energy for Nigerians,” Oluwagbemi stated.
Also speaking, GACN’s managing director, Mr. Chijioke Uzoho, said the framework would ensure full regulatory alignment and accountability for gas deliveries across the entire supply chain. “This model strengthens coordination and ensures all deliveries are properly tracked,” he said.
During a technical briefing, GACN’s gas trading manager, Mr. Oche Agbese, disclosed that an additional 20 million standard cubic feet per day (mscfd) of gas has been secured, bringing the total supply under the programme to 40 mscfd. He noted that the initiative is working closely with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to unlock stranded gas assets and scale up supply infrastructure.
“High-capacity CNG trailers are also being deployed to ensure nationwide delivery,” Agbese said.
Ms. Omolara Obileye, business development and strategy coordinator at P-CNGi, revealed that the programme has already attracted $500 million in investments and trained over 2,500 technicians since inception. She said the initiative currently covers 21 states, with 10 more set to join in the coming months.
“Our work will lower government energy costs and drive revenue through wider domestic gas use,” she said.
The national CNG framework is a key part of the Tinubu administration’s broader gas expansion agenda aimed at promoting clean energy adoption, reducing transport costs, and creating sustainable jobs in Nigeria’s energy ecosystem.