Tinubu’s CNG policy a failed promise

. Infrastructure gaps, inadequate gas stations, funding hurdle cripples program

. Experts urge urgent policy reset to save initiative

By AYOOLA OLAOLUWA

President Bola Tinubu’s ambitious Compressed Natural Gas (CNG) programme, unveiled as the flagship intervention to cushion the impact of petrol subsidy removal and revolutionise Nigeria’s transport sector, is yet to deliver the expected relief to millions of commuters nearly three years after its launch, BusinessHallmark’s findings have revealed.

Conceived as a cheaper and cleaner alternative to petrol and diesel, the initiative was expected to slash transportation costs, reduce pressure on household incomes, create thousands of jobs and deepen domestic gas utilisation.

BH’s findings, however, revealed that the impact of the programme on commuters has remained marginal despite the Federal Government’s constant reference to thousands of converted vehicles and huge investments in refuelling plants and conversion centres.

It would be recalled that the Federal Government had on October 24, 2025, launched the Compressed

Natural Gas (CNG) Initiative with the ceremonial handing over of two CNG-fueled buses to the management of the State House, Abuja.

Speaking at the official launch of the initiative at the Presidential Villa, Abuja, Chairman of the Nigeria

Revenue Service (NRS), Mr. Zacch Adedeji, who also chairs the Presidential Compressed Natural Gas

Initiative (P-CNGi), said that government launched the Pi-CNG to reduce transportation costs, enhance energy security and drive economic growth, particularly in the northern part of the country.

While disclosing that the launch involved the opening of seven pilot conversion centres nationwide, the

NRS boss assured that plans were underway for the government to establish multiple conversion centres across the country in the next two weeks.

“I am pleased to announce that there are currently seven conversion centres in Nigeria and the government is actively working to establish more of them. These plans will be rolled out, starting this afternoon, by the initiative.

“This project is not only about conversion of vehicles but also about generating employment opportunities. It demonstrates President Bola Tinubu’s commitment to both environmental sustainability and economic growth.

“Moreover, it is my pleasure as your Chief Tax Officer, a position I hold alongside as Chairman of this initiative, to announce that we will be waiving the Value Added Tax (VAT) on CNG purchases as well as seeking duty waivers for value-chain.

“The goal is to build a sustainable future, leveraging our own cheap and clean energy source; gas”,

Adedeji had said.

GREAT EXPECTATIONS MEET HARSH REALITY

However, field investigations by our correspondent indicate that progress has been much slower than anticipated.

BH traced the slow start of the programme to several factors, namely limited access to vehicle conversion centres, inadequate gas stations, poor financing, supply bottlenecks and weak coordination among stakeholders.

These bottlenecks have continued to frustrate the CNG programme, preventing millions of Nigerians from reaping its full benefits.

For instance, transport fares have remained high despite the introduction of several CNG-powered buses, with many commercial fleet operators utilising compressed natural gas refusing to significantly reduce fares.

Checks revealed that outside a handful of major cities including Lagos, Abuja, Port Harcourt and parts of

Ogun State, CNG refuelling stations remain scarce, with many transport operators and vehicle owners forced to travel long distances just to refill their vehicles, increasing downtime and operating costs.

Several managers of transport companies who spoke to BH on the matter, said the shortage of reliable gas stations discourages investment in CNG vehicles despite the lower fuel cost.

“You can’t blame us. Yes, CNG price may be cheaper, but what is the benefit if drivers spend hours looking for where to refill and vehicles wait hours on queue where they are lucky to find fuel?”, the manager of a popular transport company terminal at Jibowu, Lagos, who preferred to be identified as

Jude, justified.

INFRASTRUCTURE DEFICIT AS BIGGEST OBSTACLE

While the Presidential CNG Initiative is bogged down by several teething problems, findings showed that inadequate infrastructure remained the programme’s biggest challenge.

For instance, despite Nigeria having Africa’s largest natural gas reserves, the network required to successfully distribute compressed natural gas across the country remains grossly underdeveloped.

According to Engr. Dipo Ojo, a systems/pipeline engineer based in Warri, Delta State, the government

has focused more on promoting vehicle conversion, while less attention is paid to building the extensive downstream infrastructure needed to sustain large-scale CNG utilisation.

“Existing gas pipelines, compression facilities, mother stations, daughter stations and dispensing outlets are insufficient to support nationwide CNG adoption.

“Without significant investments in infrastructure, such as gas pipelines, compression facilities and

refuelling stations across highways and urban centres, widespread adoption of CNG will remain elusive”,

Ojo argued.

CHEAPER FUEL, COSTLY CONVERSION

Another major obstacle to the rapid growth of CNG in Nigeria is the high cost of converting petrol-powered vehicles to CNG.

According to several vehicle owners, auto-mechanics and installers who spoke to our correspondent on the development, costs of installation can range from N750,000 to well over one million naira depending on vehicle type and location.

Meanwhile, a Standard Cubic Metre (SCM) of CNG (equivalent to 1.169 litre of petrol) ranges from the official pump price of N380 to gouging price of N450, depending on vehicle type and location. This is a far cry to the N1,035 to N1,200 at which petrol is currently sold per litre at filling stations across the country.

Using a standard car fuel tank which has a full capacity of 60 litres as an example, it will take N72,000 at

N1,200/litre to fill it up with petrol.

On the other hand, with CNG, equivalent energy amount will require 60/1.169, which translates to 51.33

scm of CNG. Therefore 51.33 scm of CNG at N380 per scm will cost N19,506, which is a marked difference of N52,494.

However, despite the lower pump prices of CNG, installation costs of N750,000 to N1 million naira remained beyond reach for the majority of commercial drivers already battling inflation, rising maintenance costs and declining passenger traffic.

Also, our correspondent learnt that while government has announced financing schemes and conversion incentives to help push the initiative, many individual vehicle owners find it difficult to access it due to bureaucracy and limited awareness.

As a result, many drivers decided to stick with petrol despite its higher cost.

FLEET OPERATORS YET TO FEEL PROMISED BENEFITS

In the same vein, transport companies who are meant to lead the Federal Government’s CNG transition are reporting numerous implementation challenges.

According to some of the operators who spoke to this newspaper, the limited number of conversion workshops has created long waiting periods. Others also complain of shortages of conversion kits and trained technicians.