The Federal Government has launched the implementation of its Concessionary Autogas Supply and Pricing Framework for Compressed Natural Gas (CNG), aimed at regulating prices, streamlining supply, and accelerating the nationwide shift to gas-powered mobility.
The framework, approved earlier in 2024 by the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), ensures that CNG for vehicles will be priced lower than gas for power generation or industrial use—recognising its role as a strategic national resource.
Officials said the move will eliminate the risk of arbitrage, where cheaper gas intended for transport could be diverted for other uses. It also sets the stage for a transparent and efficient marketplace, benefiting gas suppliers, station operators, and vehicle owners.
According to the Managing Director of Gas Aggregation Company of Nigeria (GACN), Chijioke Uzoho, the framework will enforce both regulatory and commercial discipline. “It will ensure that every molecule of gas supplied under the framework is accounted for, and that the pricing structure is adhered to across the value chain,” he said.
Oche Agbese, GACN’s Manager of Gas Trading and Network Code, disclosed that the company had secured an additional 20 million standard cubic feet per day of gas—bringing total supply to 40 mmscf/d—to meet rising demand. A fleet of high-capacity CNG trailers will transport gas from mother stations to daughter stations and retail hubs nationwide.
The CNG market is expanding rapidly, with over 65 operational refuelling stations nationwide and more expected in the coming months. Vehicle adoption has surged from just a few thousand in certain states to tens of thousands daily across Nigeria, with projections of up to 200,000 CNG vehicles by the end of 2025.
NNPC Hosts Mobility-CNG Stakeholders Workshop
The Gas, Power, and New Energy Directorate of NNPC Ltd., led by Executive Vice President Olalekan Ogunleye, convened the Mobility-CNG Stakeholders Workshop under the theme: “Enhancing Industry Alignment for a Sustainable Mobility-CNG Sub-Sector.”
Delivering a keynote address virtually, Group CEO Engr. Bashir Bayo Ojulari reaffirmed NNPC Ltd.’s commitment to working with government partners to use gas as a strategic tool for national prosperity. “Gas remains critical to improving energy access, ensuring food security, and driving inclusive economic growth,” he said.
Safety was a major focus of the discussions. Akpabio Essien, Acting Chief Health, Safety and Environment Officer, moderated a session on strengthening HSE compliance frameworks.
Gogomary Oyet, General Manager of HSE at NNPC Retail Ltd., highlighted the company’s Goal Zero campaign, which embeds a safety-first culture across operations to maintain public trust in gas as a cleaner and safer energy alternative.