Transport Costs: FG Targets One Million CNG-Powered Vehicles

The Federal Government has renewed efforts to deploy one million compressed natural gas (CNG)-powered vehicles across Nigeria, directing relevant agencies to accelerate investments in refuelling infrastructure and vehicle conversion programmes to help reduce transportation costs.

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 (Pi-CNG & EV) and the Decade of Gas Secretariat.

Ekpo said the government must translate its Auto CNG policy into tangible benefits for Nigerians, particularly through lower transport fares following the removal of the petrol subsidy in 2023.

According to a statement issued on Sunday, October 18, by the minister’s spokesperson, Louis Ibah, Ekpo tasked the leadership of both bodies with identifying priority interventions, increasing investments, expanding CNG infrastructure and strengthening programmes to encourage nationwide adoption.

The statement said the government would intensify efforts to promote CNG as a potentially cheaper alternative to petrol, with renewed emphasis on accelerating the rollout of one million gas-powered vehicles.

Ekpo said Nigeria’s abundant natural gas resources presented an opportunity to reduce transportation expenses, increase domestic gas consumption and stimulate economic growth.

“Nigeria is a gas nation with a gas reserves index of over 80 yrs, and that is why we are talking about the Decade(s) of Gas,” he said.

The minister stressed the need to implement President Bola Tinubu’s directive to make transportation more affordable through CNG, assuring the initiative’s leadership of continued government support.

“It is important that we listen to the directive of Mr President to make transportation cheaper via CNG. We will continue to give you all the backing to provide the necessary assistance to make sure we drive this project to a logical conclusion,” Ekpo said.

He urged the Presidential Initiative and the Decade of Gas Secretariat to sustain investment in refuelling stations, vehicle conversion facilities and other infrastructure required to expand the use of natural gas as a transport fuel.

The minister also welcomed progress reported by the current leadership of the Presidential Initiative on CNG and Electric Vehicles, reiterating the government’s commitment to the programme.

The Chairman of the Presidential Initiative, Ismaeel Ahmed, said the initiative would intensify efforts to expand refuelling infrastructure and increase the number of vehicles converted to run on CNG.

The renewed push comes amid continued concerns about high public transport fares and the pressure of fuel costs on households and commercial transport operators.

CNG can offer lower fuel costs than petrol in suitable operating conditions, but the extent of savings for commuters will depend on conversion costs, the availability and reliability of refuelling stations, gas supply, vehicle operating expenses and whether transport operators pass their savings on to passengers.

The government’s one-million-vehicle target therefore depends not only on vehicle conversions but also on expanding the supporting infrastructure needed to make CNG accessible and practical for motorists and transport businesses across the country.