Gas
Nigeria's CNG drive hit by infrastructure and supply bottlenecks
Motorists embracing compressed natural gas in Nigeria face long queues and limited refuelling stations, threatening anticipated transport cost savings.
Key points
- Compressed natural gas sells at a substantial discount to petrol across Nigeria.
- Motorists encounter long queues and stockouts at refuelling stations in Lagos, Ogun and Oyo states.
- High conversion costs and hours spent waiting for fuel threaten investment recovery for commercial drivers.
Long queues and limited refuelling infrastructure are undermining Nigeria's push towards compressed natural gas (CNG), turning anticipated fuel savings into an ordeal for motorists, according to Punch reporting.
Following the removal of petrol subsidies by President Bola Tinubu in May 2023, the federal government launched initiatives to encourage the adoption of CNG. This included free conversions for commercial vehicles and subsidies covering half of conversion kit costs. Punch reported that CNG sells for roughly 380 naira to 450 naira per Standard Cubic Metre, compared to petrol prices ranging from 1,330 naira to 1,405 naira per litre.
Despite the clear economic advantages, drivers in Lagos, Ogun and Oyo states report spending hours or overnight at dispensing points. Many motorists miss out on fares and business hours while waiting in queues that stretch into the night, while others find stations completely out of stock when they finally reach the pump.
What happened
Motorists interviewed by Punch noted that while government support schemes have defrayed some conversion expenses—which can exceed one million naira depending on engine specifications—the lack of an adequate distribution network remains a primary barrier. Data from the Pi-CNG and EV website indicates that 105 certified CNG stations are currently listed across 24 states and the Federal Capital Territory, leaving many corridors underserved given the growing demand.
Why it matters
As Nigeria continues to navigate post-subsidy economic adjustments, scaling up alternative transport fuels is critical for curbing inflationary pressures on logistics and commuter fares. With fuel exports accounting for 85.9 per cent of merchandise exports in 2025, according to World Bank figures, domestic gas utilisation remains a cornerstone of national energy strategy. However, investor confidence among commercial transport operators depends heavily on infrastructure matching policy intent; unless distribution networks expand rapidly to meet demand, the hidden costs of lost time and scarce supply risk deterring further adoption.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
72.9% of electricity in Nigeria came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
