Experts Critique Nigeria's CNG Policy on Transport Costs

Experts have expressed concerns that the Nigerian government's compressed natural gas (CNG) policy is ineffective in addressing the high cost of transport fares. President Bola Ahmed Tinubu inaugurated the CNG initiative to subsidize costs for commercial transport operators following the removal of fuel subsidies earlier in the year.

While CNG is significantly cheaper than petrol, with costs reduced by 40-70%, the high conversion costs (between N1 million and N1.5 million) deter many taxi drivers from adopting it. Eric Igulla, an economic expert, noted that the lack of infrastructure, such as CNG filling stations, and technical skills further complicate the situation.

Currently, only 2% of vehicles use CNG, and transport fares have risen by 38.63% year-on-year. The National Bureau of Statistics reported an average fare increase from N1,032.46 in May 2025 to N1,431.25 in May 2026.

Emmanuel Ukar, a transport expert, highlighted the challenges in identifying CNG vehicles, while the government aims to introduce one million CNG-powered vehicles by 2027.