ABUJA, Aug 25 – CNG adoption is gaining momentum among vehicle owners and commuters as petrol price volatility makes the alternative fuel increasingly attractive, while some financial institutions are helping to finance vehicle conversions.
Oil marketers said some banks and other financial institutions are partnering with vehicle owners and interested buyers to fund the installation of CNG cylinders. Transport companies are also increasingly turning to CNG as a cheaper alternative to petrol amid rising fuel costs.
The increased interest follows a sharp rise in petrol prices after supply disruptions and higher global crude oil prices, raising concerns among marketers about falling sales and higher operating costs.
Last month, some fuel marketers suspended the purchase of fresh petrol from major depots, with the ex-depot price reaching N1,220 at depots in Lagos. They linked the situation to Dangote Refinery’s suspension of petrol loading, which contributed to market volatility and pushed petrol prices above N1,300 per litre, from an average of N1,080 in Lagos and surrounding areas. Prices have since fallen to about N1,230 per litre.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said more vehicles and commuters have switched to CNG, partly because financial institutions are helping to finance cylinder installations on a “payable when able” basis.
He said feedback from CNG users showed that the gas could last for days after installation, depending on the vehicle owner’s movement.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called for more investment in gas infrastructure. Its National President, Billy Gillis-Harry, said stronger infrastructure would allow marketers to establish more CNG daughter stations and ensure adequate supply from mother stations.
Ukadike said the Presidential Committee on CNG Initiative had distributed CNG cylinders and conversion kits at subsidised rates and was working with IPMAN to make them available at service stations.
President Bola Tinubu announced in August 2023 that the government would deploy CNG buses across states and local governments following the removal of fuel subsidies, including N100 billion for 3,000 20-seater CNG-powered buses.
CNG adoption has fluctuated with petrol prices. In June 2026, Ukadike said some vehicle owners had returned to petrol as prices declined, reducing the incentive to use CNG and LPG. The decline followed a US-Iran peace deal that pushed crude oil prices down from as high as $120 per barrel to about $77.
