Experts say Nigeria’s CNG must sell at around N520/SCM to attract investment despite current savings over petrol and diese
Experts have warned that compressed natural gas (CNG) retail prices may need to rise to about N520 per standard cubic metre (SCM) to ensure commercial viability, even as the Federal Government pushes for affordability. While motorists currently pay between N230 and N500 per SCM compared to petrol at N830–N880 per litre and diesel above N1,000, stakeholders argue that existing pricing discourages large-scale private investment required to expand refueling infrastructure.
“Commercial viability has to drive pricing. As more stations are built, the supply gap will shrink, helping to balance demand,” said Jide Pratt, COO of Aiona.
Independent researcher Tonami Playman noted that at N230/SCM, savings are extremely high, but reliance on truck-based distribution risks traffic congestion and accidents.
Nigeria has over 50,000 CNG-powered vehicles against the government’s 2027 target of one million. Despite recent investment in new stations and free conversions, experts insist that pipeline-fed stations and cost-reflective pricing remain critical for scaling adoption.