CNG Adoption Could Halve Fuel Costs, Reduce Inflation – FG

The Nigerian government has asserted that the successful adoption of Compressed Natural Gas (CNG) could help reduce inflation, which surged to 33.69% in April 2024.

Michael Oluwagbemi, Programme Director of the Presidential Initiative on Compressed Natural Gas (Pi-CNG), highlighted this during a stakeholders’ engagement meeting in Port Harcourt, Rivers State.

Oluwagbemi noted that Nigerians could achieve savings of 40-50% on fuel costs by switching to CNG. “It can reduce inflation. It is cheaper. You can realize between 40% and 50% savings from petrol. This is good for Nigeria, and it is safer,” he said. He emphasized that CNG is 18 times safer than petrol and diesel and is environmentally friendly.

He also mentioned that Nigeria could save about $2.5 billion by converting one million vehicles to CNG.

President Bola Ahmed Tinubu has directed all federal government ministries, departments, and agencies to procure CNG buses. Additionally, the government has set the price of Compressed Natural Gas at $1.57 per Metric Million British Thermal Unit.