In a proactive measure to address the escalating costs of transportation, the Federal Government has officially pegged the price of Compressed Natural Gas (CNG) at ₦380 per Standard Cubic Metre (SCM). This nationwide pricing standardization is a cornerstone of the Presidential Initiative on Compressed Natural Gas (Pi-CNG), designed to offer a more sustainable and economically viable alternative to Premium Motor Spirit (PMS), which has seen significant price instability due to current global market conditions.
The ₦380 price point serves as a critical relief mechanism for commercial transporters and private motorists. While the government has allowed for a rate of ₦450 per SCM for heavy-duty industrial vehicles and trucks to incentivize private sector participation in the gas infrastructure rollout, the ₦380 rate remains strictly mandated for passenger and public transit vehicles. By creating this dual-pricing structure, officials aim to balance market attractiveness for investors with the urgent need to keep public transportation affordable for the average citizen.
To facilitate a seamless transition, the government has introduced a consumer credit scheme through the Nigerian Consumer Credit Corporation (CREDICORP). This initiative provides vehicle owners with accessible, low-interest financing for the installation of CNG conversion kits. The program allows users to spread the cost of conversion over a six-month period, effectively removing the upfront financial barrier for many transport operators. With a current deployment phase targeting 100,000 conversion kits, the initiative is gaining rapid momentum in major economic hubs.
Data from the initiative indicates that the ₦380 per SCM rate offers savings of approximately 60% compared to traditional fuel costs. The federal government has already verified over 330 conversion centers across the country and is aggressively expanding the number of refueling stations to ensure nationwide coverage. By transitioning the national transit fleet to CNG, the government expects not only to lower daily operational costs for transporters—potentially leading to reduced fares for commuters—but also to significantly bolster the domestic economy against future global energy price shocks.
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