The Presidential Compressed Natural Gas Initiative (PCNGi) says Nigeria was on track to spend N12 trillion on fuel subsidy in 2023 before President Bola Tinubu stepped in to end the costly practice.
Programme coordinator of PCNGi, Michael Oluwagbemi, disclosed this during a stakeholders’ engagement with media partners in Lagos on Wednesday.
According to him, by the time Tinubu assumed office in May 2023, the country had already spent N5.5 trillion on fuel subsidy — an amount not even captured in the national budget.
“Had we continued, that figure could have hit N12 trillion by the end of 2023. We were borrowing to fund consumption, a path that was fiscally reckless and economically suicidal,” Mr Oluwagbemi said.
He lamented that despite Nigeria being rich in natural gas, with over 208 trillion cubic feet of proven reserves, the country continues to flare and export gas while importing refined petrol — draining the economy and exporting jobs.
“Over 90 per cent of our gas is exported or re-injected while our citizens suffer from high energy costs. That must change,” he said.
Oluwagbemi described Compressed Natural Gas (CNG) as a clean, scalable, and deployable solution that can cut fuel costs by up to 50 per cent, reduce emissions, and improve engine performance.
“Unlike pipelines that require long-term development, CNG can be transported in cylinders via road and used to power vehicles and small industries,” he explained. “Countries like Japan have used CNG for fleets since the 1980s. Nigeria can do the same.”
He noted that diesel now averages N1,400 per litre, making CNG a much cheaper option when engines are retrofitted.
To support the transition, he said the federal government is investing in CNG refuelling stations, vehicle conversion centres, and incentives for both public and private fleet operators.
“The transition won’t happen overnight. But it is happening,” Oluwagbemi assured. “Pilot programmes are running, infrastructure is expanding, and Nigerians are beginning to adopt cleaner, cheaper fuel options.”
Still, he acknowledged challenges around public trust, station availability, and conversion kit costs.
“Acceptability, accessibility, and affordability remain key barriers,” he said. “Many people fear CNG’s safety, but natural gas is significantly safer than petrol or diesel. We need awareness.”
PCNGi executive chairman, Ismaeel Ahmed, also spoke at the event, stressing that the initiative is more than just a government policy.
“This is a national energy transition framework designed to deliver long-term relief and economic self-reliance,” Mr Ahmed said. “The president was clear when he told me, ‘I don’t want to be remembered just as the president who removed subsidy, but as the one who gave Nigerians a cheaper, cleaner alternative.’”
Ahmed outlined the “Three A’s” guiding the rollout of the initiative: availability, accessibility, and affordability.
He described CNG as “far safer, cleaner, and more sustainable than traditional fuels,” with the potential to “reduce transportation costs by 80 to 90 per cent.”
The CNG initiative was launched shortly after Tinubu announced the end of petrol subsidy during his May 29, 2023 inauguration. Since then, the government says progress has been made in building the infrastructure needed to make CNG a national reality.
