Nigeria expands CNG stations to cut transport costs

Nigerian President Bola Tinubu has ordered the rapid expansion of Compressed Natural Gas (CNG) infrastructure, directing the rollout of an additional 500 refuelling stations across the country. This move is a key component of the government's strategy to mitigate the impact of the petrol subsidy removal and lower soaring transportation costs for citizens.

The new directive brings the total planned CNG refuelling stations under the federal government's program to 1,000 nationwide. President Tinubu announced this following a meeting with the Nigeria Governors' Forum, where state leaders agreed to implement measures to reduce transport fares. The focus is on promoting CNG and electric vehicles, particularly for intra-state travel, which has seen the most significant fare hikes.

"From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares. We have agreed that cheaper fuel should result in cheaper fares," Mr. Tinubu stated. A joint committee comprising federal and state authorities will be established to ensure that the cost savings from alternative energy sources are directly reflected in commuter fares.

Under the Presidential CNG Initiative, over 120,000 vehicles have already been converted to CNG, with more than 100,000 additional conversion kits in processing. The government is also investing in conversion centers and refuelling infrastructure. The Midstream and Downstream Gas Infrastructure Fund is supporting over 100 gas projects, including numerous CNG stations. The president highlighted that CNG-powered vehicles can reduce fuel expenses by 60 to 80 percent compared to petrol vehicles, emphasizing the potential for substantial savings for commuters.

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From October 1, our goal is that Nigerians begin to partake in those savings through lower transport fares. We have agreed that cheaper fuel should result in cheaper fares.