CNG Affordability Depends on Availability, Pi-CNG/EV Boss Says

Pi-CNG/EV Chairman Ismaeel Ahmed discusses CNG affordability and supply

The affordability of compressed natural gas (CNG) in Nigeria will depend not only on its price but also on reliable availability, according to Ismaeel Ahmed, Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG/EV).

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Ahmed made the remarks in Abuja on September 8, 2026, during a courtesy visit by members of the CNG/EV Users Forum. He said Nigeria must develop infrastructure covering gas production, processing, transportation, compression and distribution if CNG is to deliver sustained savings for motorists and passengers.

CNG Availability Critical to Affordability

Ahmed said the government was effectively building a new industry around CNG rather than implementing an intervention limited to one part of the energy value chain.

He noted that Nigeria has the resources and technology required to develop the industry, but the country must simultaneously create demand and ensure adequate supply.

For consumers, this means the economic advantage of converting vehicles to CNG could be undermined if motorists struggle to find the fuel when they need it.

“Affordability” therefore extends beyond the price displayed at a filling station. A fuel that is cheaper but difficult to access can increase waiting times, travel costs and operational uncertainty for motorists and transport operators.

The issue is particularly important for commercial transport, where fuel costs have a direct influence on fares and household expenditure.

Transport Accounts for a Significant Share of Household Spending

Ahmed said Nigerians spend between 15 per cent and 25 per cent of their income on transportation, depending on their location and mode of transport.

Reducing transport costs could therefore provide wider economic benefits, particularly as households continue to contend with elevated living costs.

He said the government’s push for CNG had received stronger political backing under President Bola Tinubu, turning the alternative fuel into a national policy priority.

However, Ahmed stressed that government could not finance the entire CNG value chain because of the scale of investment required and competing demands on public finances.

Private Investment Needed to Expand CNG Infrastructure

According to Ahmed, investors will need to commit substantial capital to the infrastructure required to make CNG widely accessible.

The investment requirements include gas production and processing facilities, pipelines, compression stations, transportation infrastructure, daughter stations, land acquisition, licensing and filling stations.

This creates an important role for private capital in expanding Nigeria's clean-mobility infrastructure.

Ahmed said government would serve as a catalyst on both the demand and supply sides, while private investors would be required to provide much of the infrastructure needed to establish a functioning market.

The approach could also create opportunities for developers of industrial facilities, logistics infrastructure and service stations, particularly along major transport corridors.

Previous CNG Shortages Highlight Supply Risks

The emphasis on availability comes against a backdrop of supply challenges experienced by CNG users.

In July, the FCT CNG Users’ Forum reported persistent shortages in Abuja, including long queues and motorists being unable to access CNG consistently. The group attributed the difficulties to disruptions in gas supply, limited storage capacity at some stations and logistical constraints.

The forum subsequently called for additional mother plants, standby storage facilities and faster development of gas pipelines into Abuja.

These challenges illustrate why infrastructure expansion will be central to the long-term success of Nigeria’s CNG programme.

CNG Savings Could Reduce Transport Costs

Ahmed cited the experience of a vehicle owner travelling between Kano and Karai as an example of the potential savings from CNG conversion.

According to him, the vehicle owner previously spent about ₦300,000 weekly on petrol but spent approximately ₦22,000 on CNG for a similar journey after conversion. He said the conversion itself cost about ₦1.5 million, highlighting the potential for significant operating savings over time.

However, Ahmed said the savings should ultimately extend beyond vehicle owners and translate into benefits for passengers using commercial and ride-hailing services.

This distinction is important for the broader economy because lower operating costs for transport operators do not automatically result in lower fares unless competitive pressures and other operating expenses allow the savings to be passed to consumers.

Government Targets a Broader Clean-Mobility Ecosystem

Ahmed also clarified that the Pi-CNG/EV initiative is not designed to immediately eliminate petrol and diesel from Nigeria's transport system.

Instead, Nigeria is expected to operate a mixture of energy sources, including CNG, electric vehicles, petrol and diesel.

The development of this mixed-energy transport system will require investment in infrastructure, technical skills, vehicle conversion, safety standards and consumer education.

Ahmed said misconceptions about CNG safety also remain a challenge to adoption, particularly concerns that CNG cylinders are similar to LPG cylinders and could easily explode. He said sustained public awareness would be necessary to improve understanding and confidence among users.

Implications for Nigeria’s Housing and Property Market

The expansion of CNG infrastructure could have implications beyond transportation.

More reliable and affordable mobility can improve access to housing located farther from major employment centres. If transport costs fall, households may have greater flexibility to consider housing in emerging suburbs and satellite communities where rents or property prices may be lower.

Improved transport connectivity can also strengthen the development potential of new residential areas by reducing the effective distance between homes, employment centres and commercial districts.

For property developers, the availability of reliable transport infrastructure is an important consideration when assessing emerging housing corridors. CNG stations, gas infrastructure and related transport investments could therefore contribute to the development of new commercial and residential nodes.

At the same time, land-use planning will need to account for the safety, environmental and infrastructure requirements associated with CNG facilities.

Infrastructure Will Determine the Long-Term Impact

Nigeria's CNG programme faces a broader infrastructure challenge: increasing vehicle conversions without ensuring adequate fuel supply could limit adoption and undermine consumer confidence.

The development of pipelines, processing capacity, storage facilities, transportation networks and filling stations will therefore be critical to determining whether CNG becomes a reliable alternative fuel rather than a periodic cost-saving option.

For households, the ultimate measure will be whether improved CNG availability translates into lower and more predictable transport costs.

For investors and policymakers, the focus will be on whether Nigeria can build a commercially sustainable supply chain capable of supporting growing demand.

Conclusion

The Pi-CNG/EV leadership has identified availability as a central condition for making CNG genuinely affordable in Nigeria. While the fuel can deliver substantial operating savings for some vehicle users, those benefits will depend on reliable supply, adequate infrastructure and sufficient private-sector investment.

For the wider economy and property market, a more affordable and dependable transport system could improve household purchasing power and support the development of housing and commercial activity in emerging urban areas. The success of the CNG transition will ultimately depend on how effectively Nigeria closes the gap between vehicle conversion and fuel availability.

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