The Federal Government has fixed the retail price of compressed natural gas (CNG) at N380 per standard cubic metre (SCM) in Lagos and Abuja, bringing the two cities in line with the uniform rate already applied nationwide.
The new pricing in Lagos and Abuja took effect on September 1, 2025, but had already been implemented in other parts of the country two months earlier.
Government sources confirmed the development to Nairametrics, noting it was part of efforts to harmonize CNG costs across different regions.
“From 1st September, CNG price for all category of passenger vehicles will be N380 per SCM in Abuja and Lagos. For all other locations, it was already made N380, 2 months back,” the source stated.
The adjustment represents an increase from the previous lowest retail price of N230/SCM that motorists in Lagos and Abuja had been paying. In some locations, however, prices had reached as high as N500/SCM due to factors such as distance from pipelines, reliance on truck-based distribution, and regasification costs.
What you should know
Nigeria’s CNG journey began in 2023, following the removal of fuel subsidies by the Tinubu administration. The sharp rise in petrol and diesel costs pushed the Federal Government to launch the Presidential Compressed Natural Gas Initiative (PCNGi) as a cheaper and cleaner alternative for motorists.
Under the programme, commercial drivers were offered free vehicle conversions at approved centres, while states such as Lagos, Ogun, Oyo, and Rivers rolled out CNG-powered buses and fueling stations.
- By mid-2025, more than 65 daughter stations were operational across 21 states, backed by over $450 million in investments and the training of thousands of technicians. However, adoption lagged expectations: only about 50,000 vehicles had switched to CNG as of January 2025, far below the government’s target of one million by 2027.
- Experts say Nigeria must expand pipeline-fed stations, reduce reliance on trucking, and establish a pricing framework that balances affordability for motorists with returns for investors. They suggest that for CNG adoption to be commercially viable and attract further expansion, prices per standard cubic metre (SCM) should average between N407 and N520.
This range, they explain, reflects the cost of infrastructure, distribution, and maintenance, while ensuring that investors can sustain operations and reinvest in new stations. Without such a balance, they caution, uptake is likely to remain slow despite the obvious cost advantage of CNG over petrol and diesel.
