• Nigeria’s CNG price nearly doubles after subsidy reduction
• Truck rate hits 450 naira/SCM; cars pay 380 naira/SCM
• Fuel cost hike worsens transport, food price inflation

The price of compressed natural gas (CNG) in Nigeria has nearly doubled following a tariff adjustment linked to reduced government subsidies. The price increase comes amid a scarcity of distribution points and long lines for the fuel.

According to local media, the price rose from 230 to 450 naira ($0.15 to $0.29) per standard cubic meter (SCM) for trucks and to 380 naira per SCM for cars.

The government has promoted CNG as a less expensive alternative to gasoline and diesel since it removed several fuel subsidies in 2023. Among the measures to encourage its use, the government announced a plan to convert one million vehicles to CNG by 2027. According to Michael Oluwagbemi, coordinator of the vehicle conversion program, the number of vehicle conversion centers in Nigeria grew from seven to more than 200 in a single year, between early 2024 and early 2025.

For some observers, the price hike highlights the limitations of the government’s tariff adjustment policies. For many Nigerians, who see access to cheap fuel as a benefit of the country's oil wealth, the economic shock has been particularly severe since 2023. Local media have reported a surge in transportation costs, with a ripple effect on food prices.

Henoc Dossa