CNG Hits Uniform Price of N380/SCM In Lagos, Abuja

Posted on September 2, 2025

The Federal Government has fixed the retail price of compressed natural gas (CNG) at N380 per standard cubic metre (SCM) in Lagos and Abuja, bringing the two cities in line with the uniform rate already applied nationwide.

The new pricing in Lagos and Abuja took effect on September 1, 2025, but had already been implemented in other parts of the country two months earlier.

Government sources confirmed the development, noting it was part of efforts to harmonize CNG costs across different regions.

“From 1st September, CNG price for all category of passenger vehicles will be N380 per SCM in Abuja and Lagos. For all other locations, it was already made N380, 2 months back,” the source stated.

The adjustment represents an increase from the previous lowest retail price of N230/SCM that motorists in Lagos and Abuja had been paying. In some locations, however, prices had reached as high as N500/SCM due to factors such as distance from pipelines, reliance on truck-based distribution, and regasification costs.

Nigeria’s CNG journey began in 2023, following the removal of fuel subsidies by the Tinubu administration.

The sharp rise in petrol and diesel costs pushed the Federal Government to launch the Presidential Compressed Natural Gas Initiative (PCNGi) as a cheaper and cleaner alternative for motorists.

Under the programme, commercial drivers were offered free vehicle conversions at approved centres, while states such as Lagos, Ogun, Oyo, and Rivers rolled out CNG-powered buses and fueling stations.

By mid-2025, more than 65 daughter stations were operational across 21 states, backed by over $450 million in investments and the training of thousands of technicians. However, adoption lagged expectations: only about 50,000 vehicles had switched to CNG as of January 2025, far below the government’s target of one million by 2027.

Experts say Nigeria must expand pipeline-fed stations, reduce reliance on trucking, and establish a pricing framework that balances affordability for motorists with returns for investors. They suggest that for CNG adoption to be commercially viable and attract further expansion, prices per standard cubic metre (SCM) should average between N407 and N520.

This range, they explain, reflects the cost of infrastructure, distribution, and maintenance, while ensuring that investors can sustain operations and reinvest in new stations. Without such a balance, they caution, uptake is likely to remain slow despite the obvious cost advantage of CNG over petrol and diesel.

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

As the Central Bank of Nigeria (CBN) officially rolled out its ambitious Nigeria Payments... Continue
The Nigeria AI Film Festival (NAIFF) returns this September 2026 at Alliance Française Lagos... Continue
Vice President Kashim Shettima on Tuesday credited the Economic and Financial Crimes Commission (EFCC)... Continue
The MasterChef Nigeria kitchen transformed into a bakery this week as the contestants faced... Continue
inDrive, a global mobility and urban services platform, has announced the opening of applications... Continue
BY TANIMU YAKUBU  In periods of economic adjustment, citizens naturally judge government performance through... Continue
BY ADEOLA LABZY When Joseph Olasunkanmi Tegbe appeared before the Nigerian Senate for his... Continue
The Managing Director of ANOH Gas Processing Company (AGPC), Mr. James Makinde, has called... Continue
inDrive, a global mobility and delivery platform has announced the appointment of Abhey Lamba... Continue
AFOLABI SAHEED OLAWALE Bupa, a global healthcare company, has been announced as the Official... Continue

UBA


Access Bank

Twitter

Sponsored