CNG Costs N380 per SCM As Nigeria Licenses 81 New Retailers
- NADDC Director-General Oluwemimo Joseph Osanipin revealed the number of licensed CNG retailers after meeting President Tinubu at the Presidential Villa
- CNG currently costs N380 per SCM for cars and passenger buses, and N450 per SCM for heavy-duty vehicles and lorries across Nigeria
- A motorist who switched to CNG in Kano cut fuel costs from over N200,000 to about N40,000 on a single trip, according to the NADDC boss
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Nigeria has licensed 81 companies to retail compressed natural gas (CNG), up from roughly four previously, as the federal government pushes to broaden access to the fuel alternative across the country.
The National Automotive Design and Development Council (NADDC) Director-General, Oluwemimo Joseph Osanipin, disclosed the figure on Wednesday, August 27, after meeting President Bola Tinubu at the Presidential Villa in Abuja.
Source: UGC
CNG is currently priced at N380 per standard cubic metre (SCM) for cars and passenger buses, and N450 per SCM for heavy-duty vehicles and lorries.
Why CNG Infrastructure Expansion Matters
Osanipin said the jump in licensed retailers reflected real progress in building the infrastructure necessary to support the government's CNG policy, but cautioned that widespread impact would take time.
Investment in filling stations, mobile refuelling units, and gas production facilities still needs to scale up before the policy can reach most Nigerians, Leadership reports.
He said:
"You can't put a policy in place today and start having the immediate impact."
The government has been promoting CNG as a more affordable substitute for petrol, partly to cushion the effects of fuel subsidy reforms on transport costs.
Osanipin said motorists in areas where CNG is already available are recording significant savings. He pointed to one motorist who travelled through Jigawa and Kano and managed to switch to CNG in Kano, bringing fuel costs down from over N200,000 to about N40,000.
Osanipin said
"That's massive."
Fleet Operators Urged to Pass Savings to Consumers
Fleet operators are also benefiting from lower running costs, but Osanipin raised concern that businesses are not passing those savings on to passengers and customers.
He said tackling that gap would be the next priority once infrastructure expansion is further along.
He said:
"I have seen a lot of people who are benefiting from it, but they refuse to transfer the price to the masses. So that is going to be the next stage."
Source: Getty Images
The NADDC boss added that the government is also developing electric vehicle infrastructure, with facilities already in place at about 16 universities, Punch reports
He confirmed that the first batch of electric vehicles Tinubu promised to civil servants had been delivered.
Both the CNG and electric vehicle programmes form part of a broader government effort to modernise Nigeria's automotive sector and shift transport towards cleaner, more affordable fuel options.
CNG: Lagos to acquire 100 natural gas trucks
Earlier, Legit.ng reported that Muyiwa Gbadegesin, the managing director (MD) of the Lagos Waste Management Authority (LAWMA), has hinted that the Babajide Sanwo-Olu-led administration will soon acquire 100 compressed natural gas (CNG) trucks.
The CNG trucks will be used for the operations of the private sector participants (PSP).
LAWMA noted that it is determined to manage waste in Lagos "through a range of initiatives, anchored on effective collection, treatment, and disposal".
Source: Legit.ng
