The Presidential Compressed Natural Gas Initiative (PCNGI) has clarified that the Federal Government does not subsidize Compressed Natural Gas (CNG).
In a statement issued on Wednesday, the Initiative explained that the recent pump price adjustment announced by NIPCO Gas was a commercial decision by the company and not a government directive.
NIPCO is one of several private investors in the Auto-CNG market and retains the discretion to set pump prices in line with business realities.
PCNGI explained that it neither fixes nor regulates CNG prices, noting that responsibility for oversight rests with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Since April 2024, the NMDPRA has operated an incentive-based pricing framework that guarantees Auto-CNG remains cheaper than petrol and diesel while providing tools to prevent price exploitation.
The Initiative also highlighted that the CNG market is being structured as a transparent, investment-driven sector designed to attract capital and foster competition, unlike the opaque subsidy regime that previously dominated the petrol and diesel markets.
According to PCNGI, over $1 billion has been invested in Nigeria’s CNG sector within the last 18 months under the administration of President Bola Ahmed Tinubu.
It stated that these investments are crucial for expanding infrastructure, securing supply, and ensuring long-term price stability.
Acknowledging short-term supply challenges, PCNGI described them as normal in emerging markets. It reiterated that temporary adjustments by operators are permissible provided they remain within the regulatory framework established by the NMDPRA.
“The era of subsidies that distorted the PMS/AGO market will not be replicated in the CNG space. The market will be sustained by private investment, competition, and innovation, ensuring affordable alternatives for Nigerians over time,” the statement read.
The Initiative reaffirmed its commitment to work with regulators, operators, and investors to accelerate adoption, protect consumers, and position CNG as a strategic pillar of Nigeria’s energy transition.