President Bola Tinubu has ordered the rapid deployment of approximately 100,000 Compressed Natural Gas (CNG) conversion kits to mitigate rising transportation costs in Nigeria, a move directly linked to escalating global fuel prices following the conflict in the Middle East.
The announcement was made by Ismaeel Ahmed, Executive Chairman of the Presidential Initiative on Compressed Natural Gas (Pi-CNG), following a meeting with the president in Abuja. Ahmed stated that Tinubu is actively monitoring international developments, particularly the impact of the Middle East hostilities on fuel prices, which have profoundly affected Nigeria’s transportation sector.
The directive mandates Pi-CNG to expedite the rollout of CNG infrastructure and alternative mobility solutions nationwide. The conversion kits will permit vehicle owners and tricycle operators to switch from petrol to CNG, with deployment scheduled to commence within the next two to three weeks.
This initiative is supported by a parallel push to build refuelling infrastructure. Ahmed noted that about 77 CNG refilling stations are currently under development across the country. He cited Kano as an example, where two Liquefied Compressed Natural Gas (LCNG) stations are operational and additional “daughter stations” are being constructed. The government’s strategic plan includes establishing a continuous corridor of refuelling points along major transport routes from Lokoja through Abuja, Kaduna, Zaria, and Kano to Maiduguri.
Furthermore, Pi-CNG is collaborating with local and international manufacturers to facilitate vehicle conversion and the local assembly of CNG-powered and electric vehicles. Several manufacturers have already expressed interest in setting up assembly lines in Nigeria, a development Ahmed highlighted as a potential catalyst for job creation and growth in the domestic automotive industry.
The policy response coincides with a sharp increase in national fuel prices. The Dangote Refinery, a major domestic supplier, raised its petrol price to ₦1,175 per litre earlier this week, up from ₦995 on March 7, before a slight reduction. These fluctuations are widely attributed to the geopolitical tensions involving Iran and the United States/Israel, which have destabilised global oil markets and increased Nigeria’s import-dependent fuel costs.
By accelerating the transition to CNG, the government aims to provide a more affordable and locally-viable alternative for transporters and consumers, reducing the economy’s vulnerability to international oil price shocks. The success of the initiative will depend on the swift execution of the infrastructure rollout and the adoption rate among vehicle owners.
