FG pegs CNG Price at N380 in Lagos, Abuja to standardise rates nationwide

The Federal Government has fixed the retail price of compressed natural gas (CNG) at N380 per standard cubic metre (SCM) in Lagos and Abuja, aligning the two cities with the uniform pricing structure already enforced across other parts of the country.

The harmonised price took effect on 1 September 2025, following its rollout in other states two months earlier.

Government officials confirmed the adjustment, describing it as part of ongoing efforts to streamline pricing and eliminate disparities between regions.

“From 1 September, the CNG price for all categories of passenger vehicles will be N380 per SCM in Abuja and Lagos. In all other locations, this price had already been implemented two months ago,” an official source disclosed.

Before the review, motorists in Lagos and Abuja were paying N230 per SCM, while drivers in other areas faced charges as high as N500 per SCM due to pipeline distances, reliance on trucking, and regasification costs.

Nigeria’s push for wider CNG adoption began after fuel subsidies were scrapped in 2023 by the Tinubu administration, leading to sharp increases in petrol and diesel prices. The government subsequently launched the Presidential Compressed Natural Gas Initiative (PCNGi) to promote CNG as a cleaner and more affordable fuel alternative.

The initiative offers free vehicle conversions for commercial drivers at approved centres, while states including Lagos, Ogun, Oyo, and Rivers have deployed CNG-powered buses and fuelling stations.

By mid-2025, over 65 daughter stations had been established in 21 states, backed by investments exceeding $450 million and extensive technical training programmes.

Despite these efforts, adoption remains slower than anticipated, with about 50,000 vehicles converted to CNG as of January 2025, far below the government’s goal of one million conversions by 2027.

Energy analysts say Nigeria must expand pipeline-fed fuelling stations, reduce trucking dependency, and establish a sustainable pricing structure to accelerate uptake.

They estimate that CNG prices should range between N407 and N520 per SCM to strike a balance between consumer affordability and investor returns. Without such measures, they caution, adoption could remain sluggish despite CNG’s clear cost advantage over petrol and diesel.