CNG hits N380/SCM in Lagos, Abuja as uniform pricing takes effect nationwide 

CNG Price Hits N380/SCM in Lagos and Abuja: Uniform Pricing Takes Effect Nationwide, Sparking Mixed Reactions

In a significant step toward standardizing fuel alternatives amid Nigeria’s ongoing energy transition, the Federal Government has set the retail price of Compressed Natural Gas (CNG) at N380 per standard cubic meter (SCM) in Lagos and Abuja, aligning these major cities with the uniform rate already in place across the rest of the country. Effective from September 1, 2025, this adjustment marks a 65% increase from the previous N230/SCM in these urban centers, where CNG has been promoted as a cheaper, cleaner alternative to petrol amid soaring pump prices exceeding N900 per liter. For everyday Nigerians—from ride-hailing drivers navigating Lagos traffic to families in Abuja budgeting for transportation—this change could reshape commuting costs, potentially eroding the economic appeal of CNG while advancing the government’s goal of reducing reliance on imported fuels. As the Presidential CNG Initiative (PCNGi) pushes for one million conversions by 2027, this nationwide harmonization highlights the balance between affordability and commercial viability in Africa’s largest economy, where energy prices directly impact inflation and livelihoods.

The move, confirmed by government sources, aims to eliminate regional disparities that have plagued CNG adoption since its rollout in 2023 following the removal of petrol subsidies under President Bola Tinubu’s administration. While some stations like the Nigerian National Petroleum Company Limited (NNPCL) in Abuja’s Central Business District held steady at N230/SCM on September 2, major players such as NIPCO and Mobil quickly implemented the hike, reflecting the shift toward a market-driven framework. This development comes as Nigeria grapples with fuel scarcity and high diesel costs, positioning CNG as a potential lifeline—but at a price that has motorists voicing frustration over diminished savings.

Background: Nigeria’s Push for CNG Amid Fuel Subsidy Reforms

Nigeria’s embrace of CNG accelerated in mid-2023 after the abrupt end to decades-long petrol subsidies, which had kept pump prices artificially low but drained billions from the national treasury. The Tinubu administration launched the PCNGi in July 2023, partnering with the NNPCL and private firms like NIPCO Gas to build infrastructure and incentivize vehicle conversions. Initial retail prices were set at N230/SCM in major cities like Lagos and Abuja, significantly lower than petrol (then around N617/liter) and diesel (N850/liter), making CNG about 35% cheaper on average.

By mid-2025, the initiative had expanded to over 65 daughter stations across 21 states, supported by $450 million in investments and training for 2,500 technicians. The rollout includes two phases: an intra-city plan with 21 stations operational by Q1 2024 for urban transport, and an inter-city phase adding 35 more for long-haul travel. NIPCO alone operates 15 stations, enabling CNG vehicles to travel from Lagos to Abuja via refills in between. Additional efforts, like a $27.3 million MoU with LNG Arete Ltd. in April 2025 for a northern gas plant processing 7 million standard cubic feet per day, aim to address regional shortages.

Despite these strides, adoption remains low: Only about 50,000 vehicles had converted by January 2025, far short of the 2027 target. Challenges include limited stations (just 50 nationwide as of early 2025, with 150 more planned by year-end), reliance on trucked distribution from mother stations, and price volatility. In some areas, prices had already climbed to N500/SCM due to logistics costs like distance from pipelines and regasification. The uniform N380/SCM rate—introduced nationwide two months ago and now extended to Lagos and Abuja—seeks to stabilize the market, but experts warn it may not suffice for investor returns, suggesting a range of N407-N520/SCM for sustainability.

Historical context shows CNG’s potential: Early adopters like e-hailing driver Samuel Udedike in Abuja reported 50% savings, refilling for N3,500 to cover trips that cost N20,000-N30,000 on petrol. A Lagos-to-Warri bus ride dropped from N25,000 to N18,000 on CNG in January 2025. However, detours for refills and queues persist, underscoring infrastructure gaps.

This timeline illustrates the government’s ambitious but uneven progress, with uniform pricing as a pivotal harmonization step.

Details of the Price Adjustment and Implementation

The new N380/SCM rate took effect on September 1, 2025, in Lagos and Abuja, where independent stations like NIPCO and Mobil raised prices immediately, while NNPCL outlets in Abuja’s CBD lagged at N230/SCM as of September 2. Government sources attribute the hike to aligning with the national standard set two months prior, addressing disparities where some regions paid up to N500/SCM due to trucking and regasification expenses. The adjustment affects all passenger vehicles, with no exemptions noted.

Implementation involves major stakeholders: NIPCO’s supply contract expiration led to NNPCL’s takeover, potentially stabilizing distribution but raising questions about future hikes. Stations like Shafa Energy, previously shut for charging N350/SCM, may resume at the new rate. In Edo State (Benin City), prices jumped from N200 to N380/SCM, while Greenville LNG in Kaduna has long sold above N400/SCM. For commercial vehicles, the rate remains viable but less advantageous than initial levels.

Experts recommend N407-N520/SCM for viability, factoring in infrastructure costs. At N380/SCM, a full cylinder (e.g., for a Toyota Corolla) costs about N6,000—up from N4,000—still cheaper than petrol (N855-N910/liter in Lagos/Abuja, equating to N15,000+ for equivalent range) but narrowing the gap to roughly N300 in savings. Diesel users see even greater relative benefits, with CNG at 30-35% of N1,000+/liter costs.

Expert Opinions and Public Reactions

Energy analysts view the uniform pricing as a necessary evil for scaling CNG. Kelechi Playman, an infrastructure expert, told Nairametrics that while N380/SCM promotes equity, it must rise to N520/SCM to attract investments without subsidies, citing India’s success with 8,200 stations via licensed networks. Dr. Muda Yusuf of the Centre for the Promotion of Private Enterprise (CPPE) echoed this, noting the hike is “ill-timed” amid economic hardship but essential for commercial sustainability, warning of stalled expansion without it. Samuel Udedike, an Abuja driver, praised early savings but fears queues and detours will worsen.

Public reactions are mixed, with frustration dominating. On Nairaland forums, users decried the “sudden hike” as eroding CNG’s appeal, with one thread amassing 1,038 views calling it a “betrayal” for recent converters. Daily Trust reporters captured sentiments: Ride-hailing driver Hakeem Idris called it “discouraging,” fearing abandonment of CNG; private owner Mustapha Ahmed urged incentives over hikes; commercial driver Uche Ogbu expected it but not so soon; and Bassey Effiong lamented wasted conversion costs (N350,000-N450,000 per vehicle). In Lagos, Soji Tope noted station scarcity but affirmed savings. Social media buzz on X shows 60% negative sentiment per informal trackers, with hashtags like #CNGHike trending alongside calls for more stations. No formal polls yet, but Nairametrics reports stakeholder consensus on needing pipeline expansions to curb trucking reliance.

Impact on Nigerian Consumers and the Economy

This pricing shift has immediate ripple effects for everyday Nigerians. Economically, it supports the $450M+ CNG investments but risks slowing adoption, potentially costing billions in missed fuel import savings (CNG could save N3 trillion annually per older estimates). For motorists, a Lagos-Abuja trip now costs N10,000 on CNG (up from lower estimates), still 40-50% less than petrol but less compelling amid N1,000/liter diesel. Ride-hailing and bus operators face squeezed margins, possibly passing costs to passengers via higher fares, exacerbating inflation (already 34% in 2025).

Lifestyle changes include longer refuel detours and potential shifts back to petrol, affecting urban commuters in Lagos/Abuja where traffic amplifies costs. Politically, it tests the Tinubu administration’s subsidy removal narrative, with unions like NLC demanding reversals and incentives like duty waivers on kits. Technologically, it accelerates CNG infrastructure, with real-time monitoring at stations like Powergas ensuring supply. In entertainment and sports, cheaper transport could boost events, but hikes may deter attendance.

Risks: Further hikes to N520/SCM could stall growth; benefits: Uniformity fosters 150 new stations by year-end, promoting cleaner air (CNG emits 25% less CO2 than petrol).

Conclusion: Balancing Affordability and Expansion in Nigeria’s Energy Shift

The rollout of uniform N380/SCM CNG pricing nationwide, effective September 1, 2025, in Lagos and Abuja, standardizes costs but tempers enthusiasm with a 65% hike from prior urban rates, amid mixed motorist reactions and expert calls for N407-N520/SCM viability. As PCNGi advances with 65+ stations and ambitious targets, this harmonization addresses disparities while highlighting infrastructure needs for broader adoption. Looking ahead, success hinges on pipeline expansions and incentives to bridge the 50,000-conversion gap to one million by 2027, potentially saving trillions in imports.

For Nigerian drivers, it’s a call to weigh CNG’s green promise against rising costs—monitor stations for deals and advocate for support. Share your experiences: Has the hike affected your fuel choice? Comment below!