Nigerian Government Removes CNG Subsidy, Prices Surge to N420

The Nigerian Federal Government has removed the subsidy on Compressed Natural Gas (CNG), causing prices to soar to N420 per standard cubic meter (SCM) and leading to long queues at refilling stations. While commercial truck operators are now paying N450 per SCM, private car drivers still benefit from a partial subsidy at N380 per SCM.

The move is part of a deliberate policy shift to attract investors and reduce government spending while cushioning transport costs for commuters. Stakeholders warn of potential challenges as the government pushes for full deregulation, impacting both consumers and the industry.

The NNPC Gas Marketing Limited has adjusted price structures, ending the artificially low cap on CNG prices that had been in place since 2023.