FG Targets One Million CNG Vehicles To Drive Down Transport Fares
The Federal Government has renewed efforts to deploy one million Compressed Natural Gas (CNG)-powered vehicles across the country as part of measures to reduce transportation costs and ease the financial burden on Nigerians.
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 urged the leadership of both agencies to accelerate investments in CNG infrastructure, expand vehicle conversion facilities and strengthen programmes aimed at encouraging nationwide adoption of gas-powered vehicles.
According to a statement issued on Sunday by the minister’s spokesman, Louis Ibah, the renewed push is designed to translate the Federal Government’s autogas policy into tangible benefits for Nigerians, particularly through lower transportation fares following the removal of the petrol subsidy in 2023.
The minister stressed that the government remained committed to making transportation more affordable through the adoption of CNG, noting that Nigeria’s abundant natural gas resources presented an opportunity to reduce operating costs for transport operators and stimulate economic growth.
“Nigeria is a gas nation with a gas reserves index of over 80 years, and that is why we are talking about the Decade(s) of Gas,” Ekpo said.
He added that the government would continue to support the initiative in line with President Bola Tinubu’s directive to make transportation cheaper through alternative fuels.
Ekpo also called for sustained investment in refuelling stations, vehicle conversion centres and other essential infrastructure required to make CNG readily accessible to motorists and commercial transport operators.
He noted that domestic gas consumption had exceeded two billion cubic feet per day for the first time in the country’s history, describing the development as an opportunity to deepen local gas utilisation and advance Nigeria’s economic objectives.
The Chairman of the Presidential Initiative on CNG and Electric Vehicles, Ismaeel Ahmed, said the initiative would intensify efforts to expand refuelling infrastructure and increase the number of vehicles converted to run on gas.
Ahmed explained that the programme was aimed at improving access to CNG for transport operators and ensuring that the resulting savings translated into reduced fares for millions of commuters.
He added that a joint industry market study conducted by the Decade of Gas Secretariat had provided a framework for accelerating implementation, identifying infrastructure gaps and monitoring progress towards the one-million-vehicle target.
Similarly, the Coordinator of the Decade of Gas Secretariat, Ed Ubong, described CNG as a critical component of Nigeria’s energy transition, reaffirming the secretariat’s commitment to promoting domestic gas consumption and attracting investments into the sector.
The Federal Government introduced the CNG programme to cushion the effects of petrol subsidy removal by encouraging motorists and transport operators to switch to more affordable alternative fuels.
The initiative includes support for vehicle conversions, the establishment of refuelling facilities and the expansion of gas distribution infrastructure.
However, achieving the one-million-vehicle target will require sustained funding, reliable gas supply and effective coordination among government agencies, industry operators and conversion centres.
The extent to which the programme will reduce transportation fares will also depend on the availability of refuelling stations and whether transport operators pass the savings from lower fuel costs on to commuters.
