The Presidential Compressed Natural Gas Initiative (PCNGI) has debunked reports suggesting that the Federal Government ordered or approved a hike in the pump price of Compressed Natural Gas (CNG).
In a statement issued on Thursday in Abuja, Matilda Johnson, Brands and Corporate Communications Manager at PCNGI, said the recent increase from N230 to as high as N380 per Standard Cubic Metre (SCM) was solely a decision by private operators and not linked to any government directive.
Johnson stressed that claims of subsidy removal or government-mandated price adjustments were “misleading and false.”
> “No directive or policy has been issued by the Federal Government to alter CNG pump prices nationwide. The recent pump price adjustments announced by certain operators were purely private-sector decisions and not the outcome of any government directive or policy,” the statement read in part.
CNG remains a cornerstone of President Bola Tinubu’s energy transition drive, intended to provide motorists with a **cheaper, cleaner, and more sustainable alternative** to petrol and diesel following the 2023 fuel subsidy removal.
While petrol and diesel prices have surged, CNG has consistently been promoted as the cost-effective option. Even at the adjusted rates of N350–N400 per SCM in some locations, it still sells at less than half the cost of Premium Motor Spirit (PMS).
Johnson highlighted that the CNG sector has attracted nearly $1 billion in private investment, underscoring confidence in its long-term viability.
She added that PCNGI’s priority remains to deepen adoption across the country:
* As of mid-2025, 65 daughter stations were operational across 21 states, with more under construction.
* Over $450 million in investments has gone into fueling infrastructure and technician training.
* More than 50,000 vehicles have been converted to run on CNG, though this remains far short of the government’s ambitious target of one million vehicles by 2027.
Energy experts caution that while CNG must remain significantly cheaper than petrol to encourage adoption, modest upward price adjustments may be necessary to ensure long-term sustainability for operators.
The government, however, insists that its role is to provide an enabling environment, not to fix pump prices.
“CNG adoption is a private-sector-driven market. Our focus is on encouraging investment, expanding fueling infrastructure, and ensuring accessibility. CNG will continue to be Nigeria’s most affordable and climate-friendly transport fuel,” Johnson reiterated.
Nigeria’s CNG initiative was launched in 2023, shortly after the removal of petrol subsidies. The PCNGI has since coordinated partnerships with state governments, including Lagos, Ogun, Oyo, and Rivers to deploy CNG-powered buses, build fueling stations, and offer free vehicle conversions to commercial drivers.
Despite these gains, adoption has been slower than expected, with many motorists citing limited refueling points and fluctuating prices as barriers.
