The Federal Government has secured about $2.5 billion in private-sector commitments for the development of Compressed Natural Gas (CNG) and electric vehicle (EV) infrastructure as it expands the rollout of alternative-energy vehicles to drive down transport fares across the country.
Executive Chairman of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (PICNG-EV), Ismaeel Ahmed, disclosed this while speaking on Channels Television’s Politics Today.
Ahmed said the initiative was established to provide a more sustainable and affordable alternative to petrol and diesel, while leveraging Nigeria’s abundant natural gas resources to reduce transportation costs.
He said the Federal Government had also committed between N300 billion and N400 billion to infrastructure, vehicle deployment and subsidised conversion kits to accelerate the transition to CNG and electric vehicles.
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According to him, the government’s objective was not merely to make gas cheaper but to ensure that savings from lower fuel costs were passed on to commuters through reduced transport fares.
“The President said we are not here to just sell cheaper gas. Cheaper gas would only make sense if the passenger is benefiting as a result of that through reduction of fares,” Ahmed said.
He said the CNG rollout had expanded significantly since 2023, when the country had fewer than 10 CNG stations, noting that the number had risen to about 90 operational stations, with another 170 at various stages of development.
“In three years, what the President has been able to do is move from less than 10 CNG stations to 90 CNG stations that are operational today, and about 170 in different stages of development,” he said.
Ahmed said the Federal Government was targeting hundreds of additional CNG stations, adding that 500 filling stations had been ordered through federal infrastructure initiatives, while another 500 commitments had been made following the President’s engagement with state governors.
He said Abuja alone now had 26 operational CNG stations, while Kano, which had no operational CNG station about a year ago, now had 10.
The PICNG-EV chairman explained that the expansion of CNG infrastructure required investment across the gas supply chain, from production and compression to transmission and dispensing.
“It is a chicken and egg. So which one comes first? Am I going to convert my car when there is no gas station? Am I going to invest in a gas station when there are no converted vehicles for them to do the activity?” he asked.
“What PICNG-EV did was to say that we are going to convert cars, pull out the demand, create the demand market, make sure that the supply is there, and then create an enabling environment so that capital will follow where the market is.”
On the expected reduction in transport fares, Ahmed said CNG-powered buses operating on designated routes should offer a minimum of 40 per cent reduction, with some routes recording higher savings.
He cited CNG routes within the Federal Capital Territory, including Abuja-Gwagwalada, where fares had already fallen following the deployment of CNG buses.
Ahmed said operators had also been directed to display fares inside the buses to enable passengers to know the cost of their journeys before boarding.
“We told the operators to put the fares on the bus, so that before you get on the bus, you know exactly how much you are paying,” he said.
He said the government was not seeking to impose blanket price controls on transport operators but expected them to pass on part of the savings from cheaper CNG to commuters.
Ahmed said the Federal Government had already deployed 655 CNG buses and would deploy more, while state governments were being encouraged to procure CNG buses and electric vehicles for public transportation.
He stressed that the programme was no longer solely a Federal Government initiative, saying state governments had a role to play in expanding alternative-fuel transportation infrastructure.
“The CNG revolution or the alternative energy for vehicles is not a Federal Government project only. It is supposed to be a national project where all the states key in as well,” he said.
On vehicle conversion, Ahmed said more than 120,000 vehicles had already been converted to CNG, while more than 60 per cent of another 100,000 conversion kits announced earlier in the year had been deployed.
He said the conversions covered cars, tricycles and buses, adding that demand was increasing as more CNG stations became operational across the country.
Ahmed said the government was also working with financial institutions to provide financing options for Nigerians seeking to convert their petrol-powered vehicles to CNG.
On electric vehicles, he said the government was promoting EVs as another alternative to petrol and diesel, noting that the initiative was intended to ensure that Nigeria did not depend on a single energy source for transportation.
“The President just didn’t want us to rely on a single model of energy for transportation system. It’s simply too volatile, unpredictable, and he wanted something sustainable,” Ahmed said.
He said CNG and electric vehicles could provide significant savings in transportation operating costs while reducing dependence on conventional fossil fuels.
Ahmed added that state governors had committed to attracting private investors to establish CNG stations along major transport corridors and to procuring CNG buses and electric vehicles for public transportation in their states.
He said the Federal Government would continue to expand infrastructure and vehicle deployment to ensure that savings from alternative fuels ultimately translated into lower transportation costs for Nigerians.