Nigeria’s ₦1,400 petrol shock: Why are motorists still driving past CNG at ₦450?
By Tahir Adewale Wali
With petrol selling at ₦1,400 per litre and Compressed Natural Gas (CNG) priced at ₦450 per standard cubic metre at NIPCO Gas Company in Abuja, the cheaper-fuel alternative is attracting attention. But for many Nigerian motorists, switching is not as simple as choosing a lower price at the pump.
The cheaper fuel is available. So, what is holding Nigerians back?
For a Nigerian commercial driver, the day often begins with a calculation: how much will fuel cost, how many trips can be completed, and what will be left after expenses?
For private motorists, the calculation is just as familiar. A trip to work, a school run, a visit to the market or a journey to see family now comes with a fuel bill that can put pressure on an already stretched household budget.
That is the reality of living with high petrol prices. When fuel becomes more expensive, the effect does not stop at the filling station. Transport fares rise, businesses spend more on deliveries, and the cost of moving goods eventually finds its way into the prices people pay.
Since Nigeria removed the petrol subsidy in May 2023, households and businesses have had to adjust to a more expensive transport environment. Many have cut back on journeys, changed their spending habits or looked for ways to reduce operating costs.
Against this background, Compressed Natural Gas (CNG) presents an alternative worth examining.
At the NIPCO Gas Company facility in Abuja, the prices used for this article are ₦450 per standard cubic metre (SCM) of CNG and ₦1,400 per litre of petrol. The difference looks attractive, especially to motorists who spend a substantial part of their earnings on fuel.
Yet one question remains: if CNG can help reduce fuel costs, why are so many motorists still sticking with petrol?
The answer is more complicated than the price displayed at a filling station.
What could motorists actually save?
Consider a vehicle that uses 10 litres of petrol to travel 100 kilometres. At ₦1,400 per litre, the fuel bill for that distance would be ₦14,000.
Now, for illustration, suppose the same vehicle uses 20 SCM of CNG to cover the same distance. At ₦450 per SCM, the cost would be ₦9,000.
That would mean a potential saving of ₦5,000 for every 100 kilometres travelled, or about 35.7 per cent.
For a commercial vehicle covering 100 kilometres daily over 26 working days, the illustrative figures would look like this:
Monthly petrol cost: ₦364,000
Monthly CNG cost: ₦234,000
Potential monthly saving: ₦130,000
Potential annual saving: ₦1.56 million
For a driver trying to pay school fees, maintain a vehicle and provide for a family, that kind of saving would matter. For a logistics company operating several vehicles, it could make a noticeable difference to monthly expenses.
But there is an important qualification. These figures are examples, not guaranteed savings. The assumed consumption rates must be tested on the actual vehicle. Fuel use varies with engine condition, vehicle type, conversion quality, load, traffic and driving habits.
CNG is measured in standard cubic metres, while petrol is sold by the litre. Comparing their prices alone does not establish which fuel is cheaper for a particular journey. The meaningful comparison is how much each fuel costs to cover the same distance.
That is the evidence motorists need before committing their money to a conversion.
Why are motorists still hesitant?
1. Finding a CNG station can be part of the problem
Imagine a commercial driver who has calculated that CNG could save money but cannot find a convenient station along his regular route. He may have to leave his normal route, spend extra time looking for fuel or wait in a queue when he should be carrying passengers.
Any savings can lose some of their appeal when refuelling becomes inconvenient.
For drivers whose earnings depend on the number of trips they complete, time is money. A cheaper fuel is only useful if it is reasonably accessible when and where they need it.
Nigeria therefore needs a more dependable network of CNG refuelling stations, particularly along major highways, in busy transport hubs and near industrial and commercial centres. Motorists should also be able to find accurate information about station locations, , operating hours and fuel availability.
Expanding access is not just about building more stations. It is about making sure drivers can rely on them.
2. The upfront cost of conversion is difficult to ignore
Even when the long-term savings look promising, the initial cost of converting a petrol-powered vehicle to run on CNG can be a serious obstacle.
Many commercial drivers do not have spare cash sitting in their accounts. Their daily earnings may already be committed to food, rent, school fees, vehicle repairs, loan repayments and other family responsibilities.
Telling such a driver that he could save money over the next year may not help much if he cannot afford the conversion today.
This is where affordable financing could make a real difference.
Government, banks, vehicle owners’ associations and private operators could work together to develop instalment plans for eligible motorists. Commercial drivers and fleet operators with high mileage may be particularly suitable candidates because they have more opportunities to recover conversion costs through fuel savings.
However, the figures must add up. Before taking a loan or entering a conversion agreement, drivers should know the full cost, repayment terms, expected savings and estimated time required to recover their investment.
The aim should be to make the switch financially realistic, not to leave motorists with another debt they struggle to repay.
3. Safety concerns deserve clear answers
Gas-powered vehicles can prompt understandable questions. Is the cylinder safe? Who installed it? What happens if a component develops a fault? Where can the system be inspected or repaired?
These are not questions that should be brushed aside with a slogan about cheaper fuel.
Public confidence depends on proper installation, approved equipment, competent technicians and consistent safety checks. Cylinders, valves, fuel lines and other components must meet applicable requirements, while motorists need access to reliable maintenance and inspection services.
Government agencies and industry operators should explain the safety requirements in language ordinary drivers can understand. They should also make it easy for motorists to identify qualified conversion centres and obtain information about servicing their vehicles.
When people are being asked to change something as important as the fuel system in their vehicles, they need more than reassurance. They need evidence that the work has been done properly.
4. Not every vehicle will be equally suited to CNG
Another issue is whether a particular vehicle is suitable for conversion and how it will perform afterwards.
The answer depends on factors such as the engine, the condition of the vehicle, the conversion system and the way it is used. A vehicle that spends long hours carrying passengers through city traffic may have different operating needs from one used mainly for occasional private journeys.
Motorists also need mechanics who understand CNG systems. Without access to qualified technicians and spare parts, a driver may worry about what happens when a problem develops.
A professional assessment before conversion can help establish whether the vehicle is suitable, what the installation will cost, what maintenance may be required and how long it could take to recover the investment.
The decision should be based on the vehicle and the owner’s circumstances, rather than a blanket promise that CNG is automatically the best option for everyone.
What government and industry should do next
Nigeria’s CNG programme will make more sense to ordinary motorists when the benefits become easier to access and the risks are properly managed.
First, improve access to refuelling. More strategically located stations, dependable supplies and accurate public information would make it easier for drivers to plan their journeys.
Second, make conversion affordable. Financing arrangements should be designed around realistic savings and repayment periods. Drivers should be able to understand the full cost before signing an agreement.
Third, enforce safety standards. Approved conversion centres, trained technicians, proper inspections and accessible maintenance services should be central to the programme.
Fourth, publish credible cost comparisons. Rather than relying on broad claims about savings, operators should provide measured examples showing how much comparable vehicles spend per kilometre on petrol and CNG. The assumptions and test conditions should be made clear.
Finally, let the results speak. Public transport operators, delivery companies and government fleets could document their fuel expenses before and after switching to CNG. Their experience would help other motorists understand the likely costs, benefits and practical challenges.
Drivers are more likely to trust figures drawn from real operating conditions than promises that do not account for the differences between vehicles and routes
A business opportunity, if it is approached properly
CNG is not only a question of fuel prices. Its wider adoption could create opportunities for Nigerian businesses and skilled workers.
These include vehicle conversion and maintenance, technician training, equipment supply, fleet management, safety inspection and financing. Investors may also explore gas distribution and refuelling infrastructure, provided they first assess demand, supply reliability, regulatory requirements and operating costs.
There is room for local businesses to develop expertise and provide dependable services. But the sector needs competent operators and proper standards, not simply people rushing in because they see a new market.
A reliable CNG industry could support jobs while helping transport businesses manage expenses. That outcome will depend on the quality of the services available and the confidence motorists have in them.
Cheaper fuel must translate into real savings
CNG is not a magic solution to Nigeria’s transport problems. It will not suit every vehicle, and the country will continue to need other fuels and transport options. But where it offers a genuine financial advantage, there is a strong case for making it more accessible.
At the stated prices of ₦1,400 per litre for petrol and ₦450 per SCM for CNG, motorists have reason to investigate the alternative. Yet the difference between those two prices is only the beginning of the calculation.
They must also consider how much fuel their vehicles will consume, how much conversion will cost, where they can refuel and whether qualified maintenance services are available. For some drivers, the investment may pay off. For others, the benefits may be smaller or take longer to recover.
That is why clear information, reliable infrastructure and affordable financing matter so much.
Nigeria’s motorists do not need to be told repeatedly that fuel is expensive. They experience it every time they pay at the pump. What they need is a practical alternative they can afford, access and trust.
The real test of Nigeria’s CNG ambition is not how many vehicles are converted or how attractive the price sounds. It is whether ordinary motorists can make the switch safely, refuel without unnecessary difficulty and see a measurable difference in what it costs to keep their vehicles on the road
.
Until that happens, many drivers will continue to look at CNG with interest—but drive away on petrol.
Wali writes from Abuja.
