The Federal Government has reaffirmed that its ongoing energy reforms particularly the Presidential Initiative on Compressed Natural Gas (Pi-CNG) will play a central role in driving sustainable economic growth, reducing fuel dependency, and lowering operational costs across key sectors of the Nigerian economy.
According to the government, the country’s transition from premium motor spirit (PMS) reliance to cleaner, cheaper alternatives such as Compressed Natural Gas (CNG), Autogas, and other domestic energy sources represents one of the most strategic pathways to long-term economic stability.
Speaking at a recent energy stakeholders’ engagement, federal officials emphasised that Nigeria can no longer rely on the volatile global oil market or heavy petrol importation that drains national revenue. Instead, the government is investing in energy diversification, domestic gas utilisation, and infrastructure that supports affordable alternatives for transportation, manufacturing, logistics, and small businesses.
The Pi-CNG initiative, launched in 2023 and expanded under President Bola Ahmed Tinubu’s administration, aims to convert public transport buses, government fleets, and private vehicles to CNG an alternative said to be up to 70% cheaper than petrol.
An official from the initiative noted:
“CNG is less expensive, cleaner, and more sustainable. Every naira saved by transport operators and businesses goes back into productivity. That is how energy reform drives economic reform.”
Experts have argued that transportation remains the backbone of commerce. With the removal of petrol subsidy and rising cost of petrol, transport operators, commuters, and small enterprises have faced steep operating expenses. The Pi-CNG plan is expected to ease this burden by offering affordable energy options nationwide.
The programme includes:
- Establishing CNG conversion centres across states
- Deploying CNG-powered buses to major cities
- Training technicians and automotive specialists
- Providing incentives for fleet owners to convert
- Strengthening gas distribution infrastructure
Government officials say the reforms will create thousands of skilled jobs while reducing Nigeria’s carbon emissions.
Beyond transportation, the government highlighted that manufacturing companies, agro-processing plants, welders, bakers, and small-scale industries stand to benefit greatly from cheaper gas alternatives.
Energy represents up to 40% of production costs in some Nigerian industries, according to data from the Manufacturers Association of Nigeria (MAN). Analysts argue that energy diversification could unlock productivity, promote price stability, and increase output.
The Federal Government also believes that the long-term goal of its energy reform programme is to deepen the domestic gas market, attract foreign investors, and support Nigeria’s position as a major gas-producing nation.
Nigeria holds Africa’s largest gas reserves, yet utilisation remains significantly low. The new energy roadmap aims to reverse this trend through public-private partnerships, incentives for investors, and an enabling policy environment.
The government urged transport unions, businesses, and citizens to key into the Pi-CNG programme, noting that adoption at scale will determine how quickly Nigerians feel the economic benefits.
Officials also reiterated that the reforms will continue alongside efforts to stabilise electricity supply, expand renewable energy, and support off-grid power solutions, especially for rural communities.
