Nigeria Targets $1 Billion Yearly to Expand CNG Projects, Cuts Transport Fares

The Federal Government is seeking to attract $1 billion annually to boost Nigeria’s Compressed Natural Gas (CNG) conversion drive, with over $500 million already invested in the last year. The push forms part of a broader strategy to lower transport costs, improve food supply logistics, and transition to cleaner energy sources.

The update was shared by the Programme Director of the Presidential CNG Initiative (PCNGi) during the commissioning of a new CNG Conversion Centre at Mile 2, Lagos. The centre was launched in collaboration with the National Union of Road Transport Workers (NURTW), marking another step in expanding the country’s CNG infrastructure.

According to the PCNGi director, around $175 million in fresh investments have flowed into the initiative so far this year. He named companies such as Greenville, NIPCO, AYM Shafa, Femadec Energy, and the Midstream and Downstream Gas Infrastructure Fund as key contributors.

He also emphasised the importance of extending CNG access to northern Nigeria to help lower transportation costs and ultimately reduce food prices in the South. “Affordable energy means cheaper food,” he explained, underlining the project’s broader impact on the economy.

The initiative is already yielding tangible benefits. According to the Lagos Secretary of the NURTW, vehicle conversions now take less than four hours, and drivers using CNG-powered PCNG-branded buses are reporting fare reductions of up to 50 percent.

Describing the conversion programme as a game-changer, the union official said it is delivering real economic relief to both transport operators and passengers across the country.