The federal government has standardised the retail price of Compressed Natural Gas (CNG) at N380 per standard cubic metre (SCM) in Lagos and Abuja, aligning these cities with the uniform rate already applied nationwide.
This change, effective September 1, 2025, represents a significant increase from the previous price of N230/SCM in these cities.
The new pricing brings Lagos and Abuja in line with other parts of the country, where the N380/SCM rate was implemented two months prior.
Motorists in Lagos and Abuja will now pay N380/SCM, up from N230/SCM, while prices in other locations remain steady.
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Despite the increase, CNG remains a cheaper alternative to petrol, with prices ranging from N855 to N865 per litre in Lagos and N890 to N910 per litre in Abuja.
Industry experts suggest that prices between N407 and N520 per SCM would be ideal for commercial viability, considering infrastructure, distribution, and maintenance costs.
The Nigerian government launched the Presidential Compressed Natural Gas Initiative (PCNGi) in 2023 to promote CNG adoption as a cleaner and more affordable fuel option.
Over 65 daughter stations have been operationalized across 21 states, supported by over $450 million in investments.
However, adoption has been slower than expected, with only about 50,000 vehicles converted to CNG as of January 2025, far below the target of one million by 2027.
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