Why Cheaper CNG Has Not Reduced Transport Fares in Nigeria
The Federal Government’s CNG programme was introduced to ease the transport costs that rose after the removal of petrol subsidy in May 2023. It aims to support vehicle conversions and expand the use of compressed natural gas nationwide. Yet many commuters have not seen a meaningful reduction in fares. CNG conversion remains expensive for many drivers, while filling stations are still limited, especially outside major cities such as Lagos and Abuja. As a result, only a small number of commercial vehicles currently run on gas. Park and union levies, illegal roadside collections, vehicle maintenance costs and wider economic pressures also reduce the savings available to transport operators. Many drivers use any savings to keep their businesses afloat rather than reduce fares. For CNG to make a real difference, conversion costs must fall, refuelling stations must become widely available, and illegal levies on commercial transport operators must be addressed.
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