FG Launches Autogas Framework to Stabilise CNG Prices, Boost Access

The federal government has unveiled a new framework to stabilise CNG prices and expand access nationwide.
Over 65 stations are now operational, with 28 more in progress, backed by $500 million in investment.
Gas supply has doubled to 40 million standard cubic feet daily, with plans to boost infrastructure and reach more states.

The federal government has introduced a national supply framework aimed at stabilising prices and improving access to compressed natural gas (CNG) amid rising demand across the country.

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EKO HOT BLOG reports that the Programme Director of the Presidential Compressed Natural Gas Initiative (P-CNGi), Michael Oluwagbemi unveiled the mobility-CNG supply framework on Tuesday during a flag-off event in Abuja.

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Oluwagbemi said the initiative is developed in collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company (NNPC) Limited, and the Gas Aggregation Company of Nigeria (GACN).

According to him, it was designed to establish a consistent nationwide supply strategy with stable, transparent, and cost-reflective CNG pricing.

He said, “In an economy where gas is used for multiple purposes, there was potential for arbitrage.

“This framework prevents that by creating a proper market for auto CNG — where demand, payment, and supply are all structured.”

Oluwagbemi further expressed the growing demand has driven expansion in the autogas sector, with operational stations increasing from 20 in 2023 to over 65, and more expected.

He said, “We now have 28 new stations coming up. By incentivising the private sector and ensuring pricing stability, we deliver cleaner, more secure energy for Nigerians.”

According to him, the framework includes a pricing model that reflects upstream costs while remaining affordable for consumers.

This is supported by NMDPRA’s concessionary pricing structure for the auto CNG sector, which received approval in 2024.

The Managing Director of GACN, Chijioke Uzoho said the pricing system would encourage regulatory alignment and ensure that all gas deliveries under the framework are properly accounted for.

During a technical briefing, Gas Trading Manager at GACN, Oche Agbese, revealed that 20 million standard cubic feet per day (mscfd) of additional gas has been secured, bringing the total supply to 40 mscfd.

Agbese added that the initiative is working with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to unlock stranded gas resources and enhance infrastructure through the deployment of high-capacity CNG trailers.

The P-CNGi’s Business Development and Strategy Coordinator, Omolara Obileye, said the initiative has attracted $500 million in investments and trained over 2,500 technicians to date.

Obileye further noted that CNG services have expanded to 21 states, with 10 more expected to come on board soon.