The Federal Government on Tuesday officially launched a concessionary gas pricing framework for the Compressed Natural Gas (CNG) programme, aimed at making autogas more accessible and affordable across Nigeria.
Speaking at the “Mobility CNG Supply Framework Kick-off Event” in Abuja, Chief Executive of the Presidential CNG Initiative (PCNGI), Michael Oluwagbemi, said the new framework mirrors the model used in the power sector, where Generation Companies (GenCos) benefit from a special pricing regime for gas-to-power supply.
Oluwagbemi noted that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had earlier approved the concessionary pricing structure, which allows CNG used for autogas to be priced lower than gas supplied to the power and industrial sectors. He described the policy as a key component of President Bola Tinubu’s broader energy reform agenda.
“This framework allows us to formally begin implementing concessionary pricing for autogas,” he said. “The goal is to grow the autogas CNG market in an organized and sustainable way.”
He highlighted the sector’s rapid growth, stating that the number of operational CNG refueling stations—known as daughter stations—has risen from 20 to over 65 in the past year, with more than 25 additional stations expected to open in the coming weeks. He also cited plans by Dangote Group to add 100 new stations to the 175 already under construction.
Oluwagbemi revealed that Nigeria’s CNG vehicle population has expanded from around 4,000 to over 50,000 in just one year, not including trucks. He projected the number could grow to 200,000 vehicles by year-end, with a long-term goal of reaching 1 million.
He emphasized the role of the private sector in accelerating adoption, saying the government’s focus is to create an enabling environment while private investors lead the vehicle conversion efforts.
Also speaking at the event, Managing Director of the Gas Aggregation Company of Nigeria (GACN), Chijioke Uzoho, praised the efforts of the joint working team behind the framework’s development. He said the initiative ensures a transparent and standardized supply chain, from gas sourcing to final delivery.
“This framework marks a major milestone in operationalizing Nigeria’s CNG mobility strategy,” Uzoho said. “It ensures every molecule of gas delivered is tracked and accounted for under the initiative.”
Nzubechukwu Eze
