Nigeria launches Concessionary Autogas Pricing Framework to expand CNG mobility, regulate gas pricing and drive clean, cost-effective transport alternatives

The Federal Government has formally launched the Concessionary Autogas Pricing Framework to accelerate Nigeria’s clean transport transition.

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This landmark policy move, unveiled on Tuesday in Abuja, aims to make Compressed Natural Gas a practical and affordable alternative to petrol, especially following the removal of fuel subsidies.

Driven by the Presidential Compressed Natural Gas Initiative, the new framework is designed to regulate autogas pricing, prevent market abuse, and boost investor confidence.

It sets the price of autogas lower than gas used for power generation or industrial applications, officially recognising the transport sector as a strategic national priority.

At the framework’s kick-off event, Programme Director of PCNGi, Michael Oluwagbemi, highlighted the significance of the initiative.

He said the pricing structure had been approved earlier in the year by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, noting that it would streamline gas distribution and curb illegal diversion to other sectors.

By addressing risks such as arbitrage, the framework ensures that gas purchased for vehicles cannot be repurposed for higher-profit industrial use.

Every molecule of gas, Oluwagbemi explained, will be tracked, monitored and accounted for, strengthening transparency and discipline within the market.

The country’s autogas ecosystem has grown rapidly. In just over a year, the number of operational CNG refuelling stations in Nigeria has risen from 20 to more than 65.

An additional 28 stations are set to open soon. This momentum, according to Oluwagbemi, reflects growing alignment between government policy and private sector investment.

Dangote’s recent announcement to add 100 new CNG distribution outlets underscores the scale of commitment. Together with the 175 already under construction, the expansion signals a robust supply chain poised to support Nigeria’s shift towards gas-powered mobility.

Gas-powered vehicle adoption has also surged. What began with fewer than 4,000 vehicles—mainly in Edo State—has grown to over 50,000 daily users nationwide.

By the end of 2025, projections suggest that number could reach 200,000. The government’s long-term target is to have at least one million CNG vehicles on Nigerian roads by 2027.

Managing Director of the Gas Aggregation Company of Nigeria, Chijioke Uzoho, stated that the pricing framework would bring regulatory discipline to the market, ensuring all gas supplied under the initiative is used as intended.

To meet rising demand, the Gas Aggregation Company has secured 20 million standard cubic feet per day in new supply, doubling its capacity. Plans are also in place to deploy high-capacity trailers to transport gas from major depots to distribution hubs across the country.

Omolara Obileye, PCNGi’s Business Development and Strategy Coordinator, added that the initiative had already attracted over \$500 million in private capital. More than 2,500 technicians have been trained to support vehicle conversion, ensuring the skills and workforce needed for scale.

The initiative’s reach now extends across 21 states, with 10 more on track to join soon. The shift to autogas is already reducing transport costs, improving public finances and stimulating domestic gas use for economic growth.

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The Concessionary Autogas Pricing Framework represents more than just an energy reform. It marks a decisive step towards Nigeria’s clean energy future—where affordability, sustainability and industrial competitiveness are not just goals, but realities.