CNG conversion costs hit ₦1.1m, as stations spread across 24 states

Nigeria’s drive to move motorists from petrol to compressed natural gas (CNG) is expanding, but access remains uneven across the country, while motorists outside government-subsidised conversion schemes can face bills of up to ₦1.1 million to convert their vehicles.

More than 176 CNG refuelling stations are currently operational across 24 states and the Federal Capital Territory, according to industry data obtained for this report, with the network forming part of the country’s expanding CNG infrastructure.

The figure represents the current national spread of operational CNG stations, as the Federal Government works to expand CNG infrastructure nationwide and make cheaper transport available across all 36 states.

The Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), however, puts the broader national network at more than 90 CNG refuelling stations, alongside more than 400 certified conversion centres and over 120,000 vehicles converted nationwide.

The initiative reports that certified conversion centres are available across all 36 states.

The difference between the number of conversion centres and refuelling stations highlights a practical challenge facing motorists: having access to a place to convert a vehicle does not necessarily mean having a nearby place to refill it.

Industry data obtained for this report shows that about 15,000 vehicles have been converted through one of the major CNG conversion networks, comprising more than 10,800 commercial vehicles and over 4,000 private vehicles.

About 136 vehicles have been converted free of charge under the government-backed programme through the network.

Gas supply is currently sufficient at operational stations, but some locations experience queues because motorists are concentrated around existing facilities.

The situation points to the need for more stations in surrounding areas to spread demand and reduce congestion. The distance between gas sources and potential CNG markets is also a major constraint to expanding the network, particularly because gas must be transported through pipelines or by jumbo cascades, with distance and road conditions affecting distribution.

The cost of conversion remains another barrier for motorists who do not qualify for government-backed incentives.

A four-cylinder vehicle converted using an open-loop system currently costs between ₦800,000 and ₦810,000, while a four-cylinder sequential system costs between ₦870,000 and ₦880,000.

For six- and eight-cylinder vehicles using a sequential system, the cost rises to between ₦1.09 million and ₦1.1 million, with the final price depending on the size and number of CNG cylinders installed.

The Federal Government’s current Commercial Vehicle Conversion Incentive Programme provides free conversion, including labour, for eligible union-registered commercial vehicles in cities where the programme has been activated. Ride-share operators are eligible for a 50 per cent discount.

The free-conversion category covers commercial minibuses and commercial taxi cars, mainly operated by members of the National Union of Road Transport Workers and the Road Transport Employers Association of Nigeria.

However, the number of vehicles converted free of charge through the network remains relatively small, with about 136 recorded so far.

There were also only five paid conversion bookings as of September 26, although prospective customers continued to make enquiries.

For motorists paying the full conversion cost, the economics can become favourable with regular vehicle use.

Industry figures obtained for this report show that a commercial customer spending about ₦30,000 a day on petrol could use approximately ₦10,000 in CNG to cover the same distance, representing a potential daily fuel-cost difference of about ₦20,000.

Actual savings would vary according to vehicle type, distance travelled and CNG consumption.

The conversion cost could be recovered within two to three months for commercial vehicles and six to nine months for private vehicles, depending on usage.

The broader Pi-CNG programme similarly states that CNG can be 40 per cent to 60 per cent cheaper per kilometre than petrol, while current public information puts average savings for commercial drivers at about ₦40,000 per month.

The potential reduction in operating costs is already reflected in transport fares in some states where government-backed CNG buses have been deployed.

In Borno, President Bola Tinubu said in a September 19 update that CNG-powered and electric public transport services were carrying passengers for between ₦50 and ₦100, compared with commercial fares of ₦300 to ₦600 on some routes.

In Oyo, the deployment of CNG buses on the Lagos-Ibadan route reportedly reduced fares from about ₦8,000 to ₦3,200 during initial deployment.

Further south in Enugu, the state government reported that deploying 100 CNG buses reduced the Enugu-Nsukka fare from ₦2,500 to ₦1,500, while supported buses in Plateau carried commuters for ₦200, compared with more than ₦500 commercially.

In Abuja, fares on some NURTW-operated CNG-converted routes fell by 40 per cent, including the Area 1-Gwagwalada route, where fares dropped from ₦1,500 to ₦900.

The Federal Government set October 1 as a target for more Nigerians to begin seeing reductions in transportation costs, asking states to work with transport unions and operators to expand CNG and other alternative-energy transport services.

However, the expansion of refuelling infrastructure remains critical to whether those savings can be sustained beyond government-supported fleets.

With more than 176 operational stations covering 24 states and the FCT, the national network has expanded, but 12 states remain outside the reported operational station coverage.

For motorists, the practical question remains whether they can afford to convert, qualify for available support, and find a reliable CNG station close enough to make the switch worthwhile.

The expansion of stations away from existing gas corridors, improving distribution logistics, and overcoming distance and road constraints will be central to extending CNG access to more parts of Nigeria.