Three key developments are reshaping Nigeria’s compressed natural gas (CNG) landscape as subsidy support is phased out. Firstly, the price per standard cubic metre (SCM) of CNG has surged sharply from N230 to N450, reflecting the Federal Government’s decision to withdraw subsidies that previously kept the alternative fuel affordable. This steep increase has quickly reverberated through the transport sector.
However, in a bid to maintain some degree of affordability, a partial subsidy is being retained for private car owners and commercial drivers, who are now paying N380 per SCM—leaving trucks to bear the full N450 rate.
Additionally, the government has implemented a harmonised pricing policy for CNG in Lagos and Abuja. From September 1, 2025, the rate in these urban centres was officially fixed at N380 per SCM, replacing the previous low of N230 and bringing consistency across major markets.
These pricing shifts reflect the government’s balancing act between managing cost pressures from subsidy withdrawal and supporting the gradual transition toward cleaner, cost-effective fuel options. Yet, the adjustments may also dampen enthusiasm among early adopters who converted to CNG expecting significant savings. For these motorists, now confronted with rising costs, the diminished price gap compared to petrol raises concerns about the long-term viability of their investments—especially against a backdrop of limited filling infrastructure and persistent supply challenges.
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