There are indications that the Federal Government’s (FG) scheme, designed to transition Nigeria’s vehicle transportation service industry away from fossil fuel (petrol) to gas, has encountered a major hitch.
Industry stakeholders told Financial Vanguard that the initial enthusiasm has been overtaken by frustration due to supply shortages and insufficient infrastructure.
They said that inadequate refill facilities and the gas itself across the country have become the users’ and investors’ nightmare in recent times.
The scarcity of the product is coming against the backdrop of adequate supply of petrol across all parts of Nigeria, a situation which has now started luring the gas users back to re-converting their vehicles to petrol from gas.
In several states, there is virtually zero presence of the CNG scheme and in others with physical presence including availability of conversion kits, in-built autogas vehicles already supplied and refill stations already set up, but level of activities are either non-existence or skeletal.
However, the office of the Presidential CNG Initiative, as well as key stakeholders, while acknowledging the existence of these challenges, said the programme has not derailed, adding that efforts are underway to restore progress.
FG’s incentives
The Federal Government had put in place several incentives to encourage private business organisations to go into the CNG business, including the removal of Value Added Tax (VAT) on CNG equipment and infrastructure and Liquified Petroleum Gas, including conversion kits.
On May 13, 2024 the President, Bola Tinubu, directed all Federal Ministries, Departments and Agencies to purchase CNG vehicles and other steps for its widespread use.
The government even paid for kits for free conversion of one million commercial vehicles across the country. The government’s position is that with the free conversion and a low CNG price, public transportation would become cheaper for ordinary Nigerians.
But investigations have revealed that the reluctance of the government to approve some licences for the establishment of CNG stations is part of the causes of scarcity at the few existing refill stations in Abuja and some other locations across the country.
Some of the users who spoke to Financial Vanguard also alleged sabotage.
A truck driver stated: “I believe there are some people in the downstream segment as operators and possibly regulatory agencies that are benefitting from petrol importation and they know that if more people convert to CNG and they can buy it easily, they will abandon petrol. If they abandon petrol, then they cannot be making that money again.
“President Tinubu is the one that said people should convert to CNG. So after we have converted to CNG, why can’t we buy it easily? If the stations are not enough, why will the people in government refuse to allow more stations to be established”?
Another commercial taxi operator said: “Many commercial vehicles have converted to CNG. Even many private car owners also converted to CNG but now, they are getting discouraged because of the long queues at gas stations.
“As a result of the long queues, many of them cannot spend four, five or six hours to buy CNG. They don’t have such time. So they are now reverting to petrol. That is not the way to go.”
A truck driver of one of the largest cement companies in the country told Financial Vanguard in Abuja weekend, that he and his colleagues spend an average of six days to refill their CNG-powered trucks at refill stations.
He stated: “Every time you pass this road, you will see our trucks in the queue. It is not heavy-duty trucks only. Even car owners and taxi operators suffer with us. You can see things for yourself. Look at the long queues (point at both trucks and cars in their different queues).”
“I am not happy at all. When we are coming, our company gives us N20, 000 each. Imagine being given N20, 000 and then you spend six days in the queue just to buy gas. That money is not enough at all. We are suffering.”
Abuja/Nasarawa situation
The ever-busy Abuja-Keffi Road, with an approximately 38-kilometre distance, has over 49 petrol stations situated on both sides of the road. Unfortunately, on the same road, there is only one CNG station.
The only CNG refill station, situated at Ado, Karu Local Government Area of Nasarawa State, is currently non-functional. It was launched just some eight months ago to provide substantial savings for drivers and commuters, since CNG is significantly cheaper than petrol.
Some motorists said they would have converted their vehicles to CNG but expressed frustration over lack of conversion centres, coupled with the non- functional CNG refill stations on the road.
The only functional CNG station in Nasarawa State is the Greenville’s Liquefied Natural Gas/Compressed Natural Gas (LNG/CNG) station, located in Lafia, the state capital.
A commercial driver, Adamu Suleiman, expressed frustration at the development, saying he would have been using CNG if refill stations were established along the road like the petrol refuel stations.
“I contemplated converting my vehicle sometimes last year when this initiative was launched by President Bola Tinubu but some of my friends whom I discussed the issue with asked me to hold on a little before taking the step. When I look back today, I thank them for the wise advice because where would I have been getting the CNG?”.
John Ebiam, another commercial driver who plies the Makurdi-Abuja route said not heeding the advice to convert his vehicle was one of the best decisions he has ever taken.
“Where are the CNG refill stations?” He asked rhetorically.
“I would have been crying like some of my friends are doing now.”
The frustration of long hours at the CNG stations has forced Mr. Longe Lege, a public servant in Abuja, to revert to petrol.
He said that his busy schedule does not give him the luxury of spending five to six hours at the gas station.
His words, “It’s affordable and saves a lot of costs compared to petrol. I used to spend between N50,000 and N60,000 per week on petrol to go to work but with CNG, it’s about N15,000. But the major challenge currently is the availability of gas.
“The 10 CNG stations servicing Abuja is grossly inadequate to meet the huge demand of CNG users. Some CNG users doing Bolt or Uber taxi services even sleep at gas stations just to buy gas. Due to the stress of getting gas, I have not been buying gas for a while now because I honestly do not have the patience to spend 4 hours every two days to buy gas.”
Ahmed Kunle, a taxi operator in Abuja disclosed that he spent eight hours at a CNG station last week.
He said, however, that the average time on the queue at the Mobil Station by the Dunamis Dome is three to four hours.
Financial Vanguard findings revealed that in the whole of Abuja, there are only 11 CNG filling stations and 45 in the whole country.
Out of the 11 in Abuja, only three are reliable, leaving CNG vehicle owners in frustration and regrets, with some now abandoning the CNG and reverting to running their vehicles on petrol and diesel.
Lagos
When Vanguard visited some stations in Lagos state, including Ikeja, Mushin and Apapa, CNG product was not dispensed as the attendant said they were out of stock asking us to try other stations or come back some days later.
Sources close to NIPCO refill stations, however, argued that efforts were already being made to mitigate the crisis.
“Yes, I can confirm the challenges in the availability of the product, which sometimes happens in every product supply or delivery. There are so many reasons for such, it could be a delay at the port of clearing or shipment of this product”.
Vanguard also gathered that the product kits at various locations in Lagos are experiencing scarcity. A source in one of the government approved outlets, confirmed lack of equipment to install and convert to CNG operating vehicles.
According to him, “For while now, we don’t have the kits from the government source. However, we have some to sell from our own stock which is not like the subsidized equipment from the government. I don’t know why it is not coming in at the moment but that is the reality of things across our outlets.”
South East
In the South East, the situation appears more surprising, that nearly two years after the initiative was launched they are just about starting to get on board.
In Enugu State, the government has just procured 50 CNG buses expecting the next batch of another 50 to get started.
The first 50 are currently parked at the Michael Ìkpara Square.
The State Commissioner for Transportation, Dr. Obi Ozor, said the buses would be inaugurated and deployed on the roads soon.
“You have seen buses for the mass transit programme across the state. 50 of them are already parked at Okpara Square, and an additional 50 will be joining that fleet in the next few weeks. The 100 of them will be going into commercial operations before the end of this month, which is the second year anniversary.”
He disclosed that the government plans to bring in the electric and CNG automotive manufacturing plant into Enugu.
In Ebonyi State, the government has just woken up to embrace the CNG initiative but yet to go into the actual services.
The Secretary to the Ebonyi State Government (SSG) Prof. Grace Umezuruike, said the government has purchased some CNG luxury buses. She did not give the number so far purchased.
She said the state governent approved that the buses will be plying various routes to transport civil servants to work and students to school free of charge.
It is even worse in Abia State as the state is said not to be interested in buying CNG buses, but will rather roll out electric buses soon.
Commissioner for Transportation, Abia State, Dr. Chimezie Ukaegbu, said, “We are not buying CNG buses now but we will roll out electric vehicles by end of July for Urban Mass Transit scheme”.
He, however, said that “the state is open to any investor who wants to invest in CNG buses in the state.”
“We will provide a conducive business environment for any investor.”
In Anambra State, it’s a different model as the private sector has already led the initiative with the Nnewi-based Innoson Vehicle Manufacturing Company which has fully embraced it. A section of the automobile firm’s complex is designated Innoson CNG Vehicles Manufacturing and Conversion Center, and it is fully operational.
Innoson introduced the technology in 2024 and has been producing CNG vehicles.
But surprisingly, the citizens of the state are not using the CNG vehicles just as the state government appears uninterested.
Among organizations that have patronized Innoson CNG Vehicles are the Federal Road Safety Commission, FRSC, and others based outside Anambra State.
Apart from Innoson, another company is expected to commence the production of CNG vehicles at Umunya in Oyi local government area of the state.
South South
In the South South, CNG Initiative appears strange, despite being the nation’s gas hub.
There are no CNG buses in Delta, Akwa-Ibom, Bayelsa, and Cross-Rivers, according to vehicle drivers, residents, and labour leaders in the region who spoke to Financial Vanguard.
They said the FG’s CNG program has not taken off in the region.
Comrade John Angese, Secretary, Nigeria Labour Congress (NLC), Bayelsa State, said: “The policy is not running as expected. While stakeholders, including the labour organizations, applauded the initiative, we thought it would have trickled down to states, but since the program was launched, it has ended where it was launched.
“Many states have not received CNG buses from the federal government, including Bayelsa State. There has been no report of any such vehicle in Bayelsa.
“And I want to say the CNG project of the federal government has not succeeded here in Bayelsa State”.
Comrade Alagoa Morris, ex-secretary of the Civil Liberties Organisation, Bayelsa State, said: “As far as Bayelsa State is concerned, I am yet to hear of any transporter utilizing the benefits envisaged to be derived from the CNG policy.
“The only area the CNG featured somehow is in the aspect where some generator owners tried to convert from fuel to gas. And for most people, the fear of the unknown has prevented them from converting, except that the generators originally used gas. I also decided not to convert to gas.”
Comrade Julius Laye, Chairman of Bayelsa State Trade Union Congress (TUC), said, “The policy has not impacted Nigerians. Other than hearing about it, I haven’t seen one in Bayelsa. In addition to allowing manufacturers to oversupply the market, soft loans should be provided to local producers, such as Innoson Motors, so that Nigerians can buy them.”
A resident of Yenagoa, Bayelsa state capital, Mr. Samuel Owolabi, said, “The Bayelsa government appears unenthusiastic about promoting CNG, and its absence is noticeable.”
The National Union of Road Transport Workers (NURTW) in Bayelsa State said it has neither seen nor received the federal government’s CNG buses in the state.
A top official of the NURTW, Ekeki Park, Yenagoa branch, who pleaded anonymity, asked, “What is a CNG bus? From whom and from where? We have not seen anything or received any from the federal government.”
Most vehicle owners told our reporter that they were hearing about the CNG buses for the first time and didn’t know what they looked like.
In Delta State, there is no evidence of the realization of the CNG policy.
Across the state, there are no CNG buses, as the people still rely on petrol-dependent vehicles as their means of transportation.
Chairman of the state chapter of Trade Union Congress, TUC, Mr. Bolum Martin, said the federal government had not fulfilled what it promised.
A vehicle owner, Mr. Osekene Gabriel, asserted: “Yes, it is a good policy that the president has initiated, but in reality, Deltans have not felt the impact of the policy.”
Another vehicle owner in the state, Mr. Fred Emudaye, said, “We don’t know anything about it in Delta State. We don’t know anything about CNG in the state.
“There is no evidence of CNG buses anywhere in the state. Everyone in the state is dependent on petrol. You hardly hear anyone talking about CNG buses in Delta because they simply do not exist in the state.”
However, Financial Vanguard learnt that the state government and NIPCO Gas Limited signed a Memorandum of Understanding (MoU) for the establishment of a CNG conversion centre for vehicles at a 3,000-meter facility in February 2025.
Also in another instance in Delta State, commercial bus drivers in Warri, the commercial nerve center of the state, said, “most filling stations are not designed for gas operations. They were built originally to dispense fuel to motorists and have remained so. This is one challenge hindering many vehicle owners from converting.”
Another commercial taxi operator told our correspondent, “I am not even sure they have opened any conversion center in Warri yet. The government even talked about introducing CNG tricycles for commercial use. I still see only fuel-powered Keke in Warri.”
Financial Vanguard findings revealed that after much fanfare in Akwa-Ibom State CNG launch last year, nothing concrete has happened.
In September last year, Pastor Umo Eno, the State governor, had declared that the state government would like to introduce CNG buses provided it found partners who would supply refilling stations for the transport buses.
Eno stated: “We are looking for partners who will provide refilling depots for our CNG buses,” during a broadcast commemorating the 37th year of the state’s creation.
“We will start this program as soon as this is accomplished. It does not make sense to buy CNG buses that will not have refilling depots. Doing so will defeat the purpose of this initiative.”
A month later, the federal government unveiled the CNG Conversion Incentive Programme in Uyo, the state capital, under the Presidential Compressed Natural Gas Initiative (P-CNGi).
The event witnessed the signing of a Memorandum of Understanding (MoU) between the PCNGi, Nsik Oil and Gas Limited, and two other private partners at the Nsik Motors Terminal, Uyo.
Programme Director and Chief Executive Officer of the P-CNGi, Michael Oluwagbemi, represented by Tosin Coker, the Head of Commercials, said the inauguration was for a pilot project designed to set a benchmark for CNG vehicle conversion and training in the state.
In March 2025, Nsik Oil and Gas flagged off the construction of a N10 million standard cubic feet per day (MMSCF/D) CNG mother station in Uquo Isi Edoho, Esit Eket Local Government Area.
However, nothing else had been heard of the delivery of CNG services in the state till date.
When Vanguard visited Nsik Motors, a management staff member said they were currently trying to put the needed structures in place at the Esit-Eket mother station.
Our source, who preferred to remain anonymous, hinted: “If everything had been put in place, we would have started to convert our buses to CNG.”
With no clear timeline for completion set, it is not clear when the critical stakeholders would activate both the CNG conversion incentive and refill mother and daughter stations, as no commissioning has been made.
