Federal Government Launches CNG Credit Scheme to Settle Conversion Costs and Reduce Transport Fares

The FG offers a CNG credit scheme for vehicle conversion to crash transport fares, providing 100,000 kits and flexible payment plans for Nigerian motorists.

By: AXL Media

Published: Apr 23, 2026, 8:25 AM EDT

Source: Information for this report was sourced from Legit.ng

Strategic Intervention in Energy Costs

The federal government has initiated a high priority program to accelerate the adoption of Compressed Natural Gas (CNG) as a direct alternative to conventional petrol. This move, led by the Presidential Compressed Natural Gas Initiative (Pi-CNG), is specifically designed to alleviate the financial pressure on transportation providers caused by high fuel prices. Currently, petrol prices at the pump remain significantly higher than the projected 200 naira per unit cost for CNG, creating a massive price disparity that the government intends to bridge through mass adoption.

Eliminating Upfront Financial Barriers

During a flag off ceremony in Abuja on April 22, 2026, Ismaeel Ahmed, the Chief Executive Officer of the initiative, identified initial costs as the primary hurdle for motorists. To resolve this, the government has partnered with several financial entities, including Moniepoint Microfinance Bank and the Nigerian Consumer Credit Corporation, to provide structured credit. This framework allows vehicle owners to install conversion kits immediately and spread the payments over several months, effectively removing the requirement for a large upfront capital investment.

Economic Relief for Commercial Operators

The initiative is targeted toward low income transport operators, including taxi and tricycle drivers, who are most affected by fuel volatility. According to Ahmed, shifting from petrol to CNG can reduce weekly fuel expenses by 60 to 70 percent. Furthermore, the use of natural gas is expected to lower vehicle maintenance requirements, shifting the need for mechanical servicing from a weekly to a monthly schedule. This dual benefit of lower fuel costs and reduced upkeep is central to the government’s strategy to crash national transport fares.