FG Deploys 100,000 CNG Kits as Nigerians Face Near N3 Trillion Fuel Spend in March
The Federal Government has announced the immediate nationwide rollout of about 100,000 Compressed Natural Gas (CNG) conversion kits to help Nigerians cope with soaring fuel costs, as March spending on petrol and diesel is projected to approach N3 trillion. President Bola Tinubu’s directive comes amid escalating tensions in the Middle East, which have contributed to global oil price volatility and directly impacted domestic energy prices. The government emphasized that this initiative forms part of a broader strategy to expand alternative energy options and reduce transportation costs for commuters.
Fuel price hikes have pushed households and businesses to spend heavily on energy. According to the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Premium Motor Spirit (PMS) consumption of 56.9 million litres daily could cost Nigerians about N2.1 trillion in March. Diesel consumption, averaging 20.3 million litres per day at N1,725 per litre, is expected to add over N1 trillion to the monthly energy bill. Despite reduced petrol imports—down 87.9% from January—prices remain high at retail stations, with petrol averaging N1,300 per litre and diesel at N1,725.
The Economic Management Team, chaired by Finance Minister Wale Edun, has been closely monitoring the global situation to protect Nigeria’s economic stability. The team highlighted the potential risks of Middle East unrest on crude oil and gas prices, financial markets, and domestic logistics. Meanwhile, the Dangote Refinery recently reduced its ex-gantry petrol price to N1,075 per litre, marking the first adjustment after weeks of successive increases, although retail relief remains limited for consumers across major cities like Lagos.
On the ground, rising fuel costs have strained households and businesses. Commercial drivers and private car owners in communities such as Iyana Ipaja, Egbeda, and Ikotun report increased transport fares and operating expenses. Small business owners relying on generators, like printing and photocopy shops, struggle to absorb soaring energy costs, often passing expenses onto customers. The deployment of CNG kits aims to offer an immediate alternative, allowing vehicles to convert from petrol to gas and benefit from lower running costs.
Currently, 77 CNG refuelling stations are under development nationwide, with Kano hosting two operational stations. Plans are underway to establish stations along major transport corridors from Lokoja to Maiduguri, ensuring accessibility for commuters and commercial operators. The Federal Government’s push for alternative energy solutions complements ongoing efforts to maintain macroeconomic resilience, highlighted by Nigeria’s 4.07% GDP growth in Q4 2025, while cushioning households and businesses from the ripple effects of global oil market fluctuations.
source: The guardian