The federal government is taking steps to cut transportation costs by fast-tracking the use of compressed natural gas (CNG) as a cheaper alternative to petrol. While petrol sells for about N1,200 per litre, CNG is priced around N380, making it a more affordable option for many Nigerians. The move, driven by the Presidential Compressed Natural Gas Initiative, is aimed at easing the burden on low-income transport operators nationwide.
CREDIT SCHEME FOR TRANSPORT WORKERS
To support this shift, the initiative has teamed up with financial institutions to make it easier for vehicle owners to access credit for CNG conversion. At the programme launch in Abuja on April 22, CEO Ismaeel Ahmed noted that high upfront costs have been the biggest hurdle to adoption.
The scheme involves collaborations with Moniepoint Microfinance Bank Limited, the Nigerian Consumer Credit Corporation, and the National Credit Guarantee Company Limited. Ahmed explained that the goal is to remove the financial barrier slowing down the transition by offering conversion kits at cost price, without profit margins, to encourage widespread use.
HOW THE CNG CREDIT WILL WORK
Under the plan, motorists can now pay for conversion in instalments instead of making a lump sum payment. The repayment structure is flexible and depends on each borrower’s capacity.
Ahmed explained that instead of paying about N100,000 upfront, users can spread payments over several months, making it more manageable. He added that the transition could cut fuel expenses for commercial drivers by as much as 60 to 70 percent, while also lowering maintenance costs.
For instance, a tricycle operator who currently spends around N50,000 weekly on petrol and upkeep could see those costs drop significantly, with maintenance shifting from weekly to monthly expenses.
The Managing Director of the Nigerian Consumer Credit Corporation, Uzoma Nwagba, said the initiative is designed to ensure that broader economic reforms translate into real benefits for everyday Nigerians. He noted that policies like subsidy removal and exchange rate unification improved the economy, but initiatives like this are needed to deliver relief at the grassroots level.
NNPC LISTS CNG STATIONS
The NNPC has also identified locations where motorists can access CNG:
Lagos: Fola Agoro
Amuwo Odofin
Marina
Agege By Pass
Lakowe
Odogunyan
Abuja: Gaduwa
Olusegun Obasanjo Way
Gudu
Dei Dei
Gwagwalada
Ushafa
