Fuel Relief: FG Launches CNG Financing for Motorists

The Federal Government has unveiled a major financing framework aimed at reducing transportation costs across Nigeria through the adoption of Compressed Natural Gas (CNG) and electric vehicles.

The initiative, introduced on April 24, 2026, under the Presidential Compressed Natural Gas (Pi-CNG) programme and managed by the Credit Corporation of Nigeria, is designed to provide low-interest loans to transport operators and private vehicle owners to convert petrol-powered vehicles to CNG.

The move comes amid rising fuel prices following the removal of petrol subsidies in 2023, which has significantly increased transport fares nationwide. Government officials say the shift to CNG leveraging Nigeria’s vast natural gas reserves, is expected to offer a more affordable and sustainable alternative.
Under the scheme, motorists can access financing to cover the high upfront cost of conversion kits, estimated at about ₦800,000 per vehicle. Beneficiaries will repay the loans over a period of 24 to 36 months through structured payment plans tied to fuel purchases.

According to the programme coordinators, the government is targeting the conversion of one million vehicles by 2028. If achieved, the initiative could reduce transport fares by up to 40 percent and ease pressure on household incomes.

Beyond cost savings, the programme is also expected to deliver macroeconomic benefits by reducing Nigeria’s reliance on imported refined petroleum products and conserving foreign exchange. Additionally, CNG is considered a cleaner fuel, with lower carbon emissions compared to petrol, aligning with global environmental commitments.

However, stakeholders have raised concerns over infrastructure gaps, particularly the limited number of CNG refuelling stations nationwide. There are currently fewer than 100 functional stations, mostly concentrated in major cities, posing a challenge to large-scale adoption.

Safety concerns and the risk of unregulated vehicle conversions have also been highlighted. In response, authorities say certification standards and monitoring systems will be enforced to ensure compliance and public confidence.

With the first batch of converted vehicles already deployed in Abuja, the success of the programme will largely depend on rapid infrastructure expansion and effective implementation.

Transport analysts note that if successfully executed, the CNG financing scheme could significantly transform Nigeria’s urban mobility landscape and provide long-term relief from volatile fuel prices.