CNG: The Transport Revolution In Nigeria Must Get Right, by Yekini Lukmon

A CNG bus is a public transport vehicle powered by compressed natural gas rather than conventional petrol or diesel. In Nigeria, where the removal of petrol subsidy has been followed by a sharp increase in transportation costs, the transition to cheaper and more sustainable sources of energy for mobility has become increasingly important.

The Federal Government’s Presidential Initiative on Compressed Natural Gas (PiCNG), now expanded to include electric vehicles, is one of the major interventions aimed at addressing the country’s transportation challenges. The government has also established a National Affordable CNG Transit Programme, with the stated objective of achieving measurable reductions in transportation costs from October 1, 2026. The programme is being implemented in phases and involves the 36 states and the Federal Capital Territory.

The initiative is timely. But for CNG to become more than a government programme and truly transform the Nigerian transportation system, it must move beyond the provision of buses to the development of an entire ecosystem involving infrastructure, commercial transport operators, state and local governments, and private investors.

A solution to a national problem

Nigeria’s transportation crisis is not merely a mobility problem; it is an economic problem. When the cost of moving people and goods rises, the impact eventually reaches almost every household.

The commuter pays more to get to work. The trader spends more to transport goods to the market. The farmer pays more to move agricultural produce from the farm to urban centres. Manufacturers and distributors face higher logistics costs, while consumers ultimately bear much of the burden through increased prices.

This is why the CNG initiative deserves serious attention.

CNG can reduce the operating cost of vehicles compared with conventional petrol and diesel, while also helping Nigeria make better use of its natural gas resources. The Federal Government says the PiCNG and EV initiative is intended to expand CNG infrastructure, vehicle conversions and nationwide clean-mobility investment. It has also directed the rapid deployment of conversion kits and the expansion of refuelling infrastructure.

There is already evidence that cheaper energy can translate into cheaper public transportation. The Presidency recently cited CNG-powered and electric public transport services in Borno, where some commuters were reportedly paying between N50 and N100 on routes where commercial operators charged between N300 and N600.

The challenge, therefore, is not simply whether CNG can work. The bigger question is whether Nigeria can build the infrastructure and regulatory framework required to make its benefits widespread and sustainable.

Governments at all levels must play their part

The Federal Government cannot carry the entire burden alone.

State and local governments must develop complementary transport policies that support the CNG transition. They can facilitate conversion centres, provide appropriate transport infrastructure, support organised mass transit schemes and create an enabling environment for investors.

Private investors should also be encouraged to participate. Nigeria has millions of commercial vehicles operated by private individuals and transport businesses. These operators cannot be left outside the transition if the country genuinely wants to achieve nationwide impact.

Rather than relying exclusively on government-owned buses, a structured partnership with private transport operators could significantly accelerate the conversion of existing vehicles from petrol and diesel to CNG.

The Federal Government has already recognised the importance of making conversion accessible. Its March 2026 directive called for vehicle conversion kits to be rapidly deployed nationwide and made available at costs that are not burdensome, with financing arrangements involving financial institutions and CreditCorp Nigeria.

This approach should be expanded.

Make conversion affordable for commercial operators

One of the most important questions is affordability.

If the cost of converting an existing commercial vehicle to CNG remains too high for the average transporter, many operators will simply continue using petrol and diesel. That would slow down the transition and limit the impact of the programme.

Government should therefore consider incentives such as subsidised conversion, accessible financing, tax relief, maintenance support and other carefully targeted incentives for commercial transport operators.

The objective should be simple: make it economically sensible for a transporter to convert.

At the same time, the country must rapidly expand CNG refuelling and conversion infrastructure. A transport system cannot depend on CNG if motorists have difficulty finding a reliable place to refuel.

The Federal Government has already identified the expansion of CNG infrastructure and mobile refuelling units as part of the programme. But the pace of deployment must correspond with the number of vehicles expected to enter the system.

CNG alone will not solve Nigeria’s transport crisis

It is important to recognise that CNG is only one part of the solution.

Nigeria also needs better roads, safer public transport, functional rail services, improved waterways, effective traffic management and stronger urban transport planning.

The World Bank has previously described roads as the backbone of Nigeria’s transport system, carrying about 90 per cent of the country’s goods and passenger movements. More recent World Bank analysis also notes that more than 90 per cent of travel in Nigeria is supported by roads.

This demonstrates why investment in transportation infrastructure must go hand in hand with the energy transition.

A cheaper vehicle operating on a badly maintained road will not deliver the full economic benefit expected from CNG. Neither will affordable buses alone solve congestion in cities where urban transport planning remains weak.

Nigeria needs an integrated transport strategy.

The danger of allowing transport savings to disappear

There is another issue that deserves serious attention: cheaper fuel does not automatically guarantee cheaper fares.

Government must ensure that the savings achieved through CNG are reflected, where appropriate, in the fares paid by commuters. This requires transparent fare structures, effective regulation and continuous engagement with recognised transport associations and operators.

Without appropriate monitoring, there is a risk that reductions in operating costs could fail to translate into meaningful savings for passengers.

The purpose of the CNG programme should therefore extend beyond putting buses on the road. It should ultimately improve the economic circumstances of the people who depend on public transportation every day.

The economy cannot grow without an efficient transport system

Transportation is at the heart of economic activity.

When people can travel to work at a reasonable cost, businesses can move goods more efficiently and farmers can transport produce to markets at lower cost, economic activity becomes easier.

Lower logistics costs can also help businesses remain competitive and reduce some of the cost pressures that feed into consumer prices.

This is why the CNG transition should be treated as an economic development strategy, not merely as a fuel-substitution programme.

It can create opportunities in vehicle conversion, gas distribution, maintenance, manufacturing, transport services and related businesses. It can also contribute to cleaner urban environments by reducing emissions from conventional fuels.

A partnership for a better Nigeria

The success of the CNG initiative should not be measured only by the number of buses procured or conversion centres established. The real measure should be the difference it makes in the daily lives of Nigerians.

Can a worker spend less to get to work?

Can a trader move goods to the market at a lower cost?

Can a farmer transport produce without losing a substantial portion of the expected profit to logistics?

Can businesses reduce transportation expenses and invest the savings in expansion and employment?

These are the questions that should guide the implementation of the programme.

The Federal Government has provided an important foundation. Now, state and local governments, private investors, transport operators, financial institutions and other stakeholders must bring their own contributions to the table.

Nigeria is a large and rapidly growing country. A gradual transition that fails to keep pace with the country’s transportation demand will have limited impact. The implementation must therefore be ambitious, coordinated, transparent and responsive to the realities of ordinary Nigerians.

A better Nigeria cannot be built by government alone. Citizens, businesses and institutions all have roles to play.

The CNG initiative provides an opportunity to rethink how Nigerians move people and goods across the country. If properly implemented, supported by investment and matched with effective regulation, it could become an important part of reducing transportation costs and strengthening economic activity.

Now is the time to turn Nigeria’s abundant natural gas resources into affordable mobility, stronger commerce and better economic opportunities for the people. The journey towards the Nigeria we desire must include a transportation system that works for everyone.