CNG: The alternative fuel Nigeria can no longer afford to ignore

For the average Nigerian, the energy transition is not an abstract conversation about emissions targets or technology. It is the cost of getting to work, moving goods, taking children to school, and simply getting through the day.

That is why the conversation around Compressed Natural Gas (CNG) matters.

Nigeria did not invent CNG, and neither is it an experimental fuel. Countries such as Iran, Egypt, China, India and Pakistan have used natural gas in transportation for decades because it can be cheaper than petrol and diesel, makes use of domestic energy resources, and reduces dependence on conventional fuels. More than 28 million natural gas vehicles were operating globally by 2024, the majority powered by CNG. 

For Nigeria, therefore, the question is no longer whether CNG can work. Other countries have answered that already. The real question is whether Nigeria can build the infrastructure, standards, and market confidence needed to make it work at scale.

An alternative, not another dependency

Nigeria’s transport sector has for decades depended overwhelmingly on petrol and diesel. That dependence leaves the cost of moving people and goods vulnerable to global oil prices, foreign exchange pressures, and supply disruptions.

For a country with substantial natural gas resources, that is a difficult contradiction to ignore.

CNG offers a practical way to begin correcting it. It does not mean every Nigerian vehicle must run on gas, nor does it mean petrol will disappear. Electric mobility is also growing and will become an increasingly important part of the transport mix.

What CNG offers is choice.

Many CNG conversions are bi-fuel, meaning a vehicle retains its petrol system while gaining the ability to run on gas. Where CNG is available, the motorist can use the cheaper fuel; where it is not, petrol remains a backup. This makes the transition particularly relevant to Nigeria because millions of motorists do not have to discard vehicles they already own before participating.

The strongest argument for CNG, however, is simple: economics.

Fuel is one of the largest recurring expenses for transport operators. For a taxi, bus, tricycle, or logistics vehicle covering substantial distances every day, even a modest reduction in fuel cost per kilometre adds up quickly.

That is why commercial transport has been central to CNG programmes elsewhere. Egypt’s early experience showed that high-mileage drivers could recover conversion costs far more quickly because their savings accumulated every day. The principle is pretty straightforward. The harder the vehicle works, the faster the economics begin to make sense. 

Nigeria has already begun to test that principle on its own roads.

Through the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, Pi-CNG & EV, the country has begun expanding conversion capacity, refuelling infrastructure, and public transport deployment while working with states, operators, and private investors to widen access.

The early evidence is important because the success of CNG will ultimately be judged by what it does to the cost of movement.

In the Federal Capital Territory, Kubwa to Berger has been offered at N500 on participating CNG buses against about N1,000 on conventional alternatives, while Berger to Gwagwalada has been offered at N700 compared with about N1,200. In Enugu, the Enugu-Nsukka fare fell from a market range of roughly N3,000–N4,000 to N1,600 on the CNG service, with other operators subsequently reducing their fares. 

That Enugu example is particularly important. When lower operating costs enable one operator to cut fares, competitors come under pressure to respond. The benefit can therefore spread beyond the CNG buses themselves.

Ultimately, that is the real test of alternative-fuel policy. It is not simply how many vehicles are converted or how many stations are commissioned. It is whether lower energy costs translate into lower transport costs for the person paying the fare.

What Iran and Egypt can teach Nigeria

Iran provides one of the clearest examples of what sustained CNG adoption can achieve.

The country has built one of the world’s largest natural-gas vehicle markets, with millions of CNG-powered vehicles and thousands of refuelling stations. CNG is particularly entrenched in commercial transportation, including taxis. Iranian officials have also credited CNG with displacing significant volumes of petrol consumption over the years. Pasted text

Iran’s motivation is familiar. It possesses substantial gas resources and sought to use more of that resource domestically while reducing petrol consumption.

But its experience also carries an important lesson: vehicles cannot grow faster than infrastructure.

CNG adoption becomes sustainable when conversion centres, refuelling stations, gas supply, safety standards, trained technicians, financing, and regulation expand together. Build too many vehicles without enough stations and queues begin to erode the advantage. Build stations without sufficient demand and expensive infrastructure remains underutilised.

A CNG programme is therefore not simply a vehicle-conversion programme. It is an ecosystem.

Egypt offers an equally useful lesson because, like Nigeria, it is an African gas producer.

The country has spent years deliberately developing natural gas as a transport fuel and has converted hundreds of thousands of vehicles while establishing hundreds of filling stations. Its programme has been supported through conversion incentives, infrastructure development, and sustained government intervention. 

Egypt did not reach that scale overnight. It built progressively.

That experience reinforces a point Nigeria cannot afford to overlook. Drivers may convert because the fuel is cheaper, but they remain committed when the fuel is easy to find, the vehicle performs well, and the system is reliable.

The history of CNG in Nigeria dates back to 1989, when the Nigerian Gas Company (NGC) first introduced it for vehicular use by installing compressors in Warri and Lagos and converting 25 vehicles. Despite a major proposal in 1997, widespread adoption remained limited for decades. The landscape changed significantly in 2023 following the removal of petrol subsidy, which intensified the search for more affordable transportation energy alternatives.

Nigeria is starting later, but moving quickly

Nigeria remains far behind established markets such as Iran and China in absolute CNG vehicle numbers. It would therefore be inaccurate to claim that Nigeria already has the world’s largest CNG market.

What is significant is the pace of recent expansion.

Nigeria now reports more than 120,000 converted vehicles, over 400 certified conversion centres, and more than 90 CNG refuelling stations. That represents a sharp departure from where the country stood only a short time ago, when CNG conversion was still largely a niche activity.

That does not make Nigeria the global leader in absolute adoption. It does show that a market which was previously marginal is beginning to develop at considerable speed.

Much of the work now underway is aimed at turning that early expansion into a functioning national market.

Pi-CNG & EV has supported the growth of conversion centres, encouraged private investment in refuelling infrastructure, and worked with state governments and transport operators on vehicle deployment. The programme has also trained thousands of technicians and continues to place safety, certification, and standards at the centre of the rollout.

That matters because adoption cannot be sustained by cheaper gas alone. A driver must know where to convert, where to refuel, and whether the installation meets acceptable safety standards.

The benefits also extend beyond fuel savings.

Conversion centres need technicians. Refuelling stations need operators, maintenance personnel, and logistics support. A larger market creates opportunities for cylinder suppliers, equipment vendors, trainers, inspectors, financiers, software providers, and local manufacturers. Nigeria’s emerging CNG value chain is therefore as much an industrial and employment opportunity as it is a transport intervention.

There is an energy-security argument too. Greater use of domestic gas in transportation can keep more value within the Nigerian economy and reduce exposure to imported petroleum products and foreign exchange volatility.

CNG also offers environmental benefits, although they should not be overstated. Natural gas remains a fossil fuel; it is not a zero-emission solution. But compared with conventional petrol and particularly diesel vehicles, it can reduce some harmful pollutants when properly produced, distributed, and used. 

The work Nigeria cannot skip

The promise of CNG will mean little if Nigerians cannot conveniently access it.

Refuelling infrastructure must grow alongside conversions. A motorist will not switch simply because gas is cheaper if finding it requires a long detour or hours in a queue.

Quality and safety are equally important. Conversions must be carried out by trained technicians using approved equipment. Cylinders require proper inspection and maintenance, and substandard kits must be kept out of the market. Experience from other countries shows that poor installation, inadequate infrastructure, or unreliable supply can quickly undermine consumer confidence. 

Gas supply must also be planned. Mother stations, daughter stations, pipeline availability, and distribution logistics need to expand with demand.

And, perhaps most importantly, the savings must remain visible.

If CNG becomes cheaper for operators but passengers continue paying the same fares, the public will reasonably ask what the transition has achieved for them.

Nigeria should not replace dependence on petrol with dependence on another single fuel. Its transport future will likely include petrol, CNG, electric vehicles, and other technologies serving different needs.

But for a country with abundant gas, a large existing fleet, and millions of commercial vehicles that need relief from high operating costs now, CNG presents an opportunity that is difficult to ignore.

Iran has shown what sustained adoption can become. Egypt has shown that an African gas producer can patiently build a significant CNG transport market.

Nigeria does not need to reinvent that experience. It needs to learn from it. Build the stations alongside the vehicles, maintain standards, train technicians, secure gas supply, make conversion finance accessible, and ensure that lower operating costs reach the passenger.

The expansion already underway through Pi-CNG & EV is an important start. The harder task is to make that progress broad enough, reliable enough, and visible enough to become part of everyday transport across the country.

Because after all the converted vehicles, stations, and policy announcements are counted, one simple question remains: Does the Nigerian boarding a bus on Monday morning pay less to move than before?

If the answer increasingly becomes yes, Nigerians will not need to be persuaded that CNG is a viable alternative fuel.

The economics will make the argument.