The federal government has set the retail price of compressed natural gas (CNG) at N380 per standard cubic metre (SCM) in Lagos and Abuja, aligning the two cities with the uniform rate already in effect across the country.
The new pricing, effective September 1, 2025, replaces the previous lowest retail cost of N230/SCM in Lagos and Abuja. Some motorists had been paying up to N500/SCM in other locations due to higher distribution costs, pipeline access, and regasification challenges.
Government officials confirmed the adjustment, noting that uniform pricing had been introduced nationwide two months earlier to harmonize costs under the Presidential Compressed Natural Gas Initiative (PCNGi). The programme was launched in 2023 following the removal of fuel subsidies, with the aim of offering Nigerians a cheaper and cleaner alternative to petrol and diesel.
Since then, states including Lagos, Ogun, Oyo, and Rivers have rolled out CNG-powered buses, fueling stations, and free conversion centres for commercial drivers. By mid-2025, over 65 daughter stations were operational across 21 states, supported by more than $450 million in investments and a growing pool of trained technicians.
Despite these efforts, adoption has been slower than expected. Only around 50,000 vehicles had switched to CNG by January 2025, far short of the government’s target of one million by 2027. Experts warn that broader adoption will require pipeline-fed stations, less reliance on trucking, and a pricing model that balances affordability for motorists with returns for investors.
They suggest a sustainable range of N407 to N520 per SCM to ensure operational viability, warning that without such balance, uptake will remain slow despite the clear cost advantage of CNG over petrol and diesel.
