The Federal Government has dismissed claims that it has removed the subsidy on Compressed Natural Gas (CNG), insisting that recent pump price hikes announced at some filling stations are decisions taken by private operators, not government policy.
Reports on Wednesday, September 3, 2025, indicated that the cost of one standard cubic metre of CNG had risen from N230 to N450 across several outlets, with some retailers attributing the hike to a subsidy cut by the government. While truck drivers reportedly pay N450/SCM, private and commercial motorists are said to still purchase at N380/SCM under partial subsidy.
However, in a statement on Thursday, Matilda Johnson, Brand and Corporate Communications Manager of the Presidential Initiative on Compressed Natural Gas (PiCNG), described such reports as “misleading and outright false.”
“The PiCNG wishes to address recent misleading reports suggesting that the Federal Government has removed subsidies or increased the price of CNG. This is incorrect,” Johnson said.
She clarified that the Federal Government has not issued any directive to alter pump prices. “Recent pump price adjustments announced by certain operators are purely private-sector decisions and not the outcome of any government directive or policy,” the statement added.
FG’s Position on CNG
According to Johnson, President Bola Tinubu’s directive remains clear: the PiCNG is mandated to drive the adoption of CNG as a cheaper, cleaner, and more sustainable alternative to petrol and diesel.
“So far, through the collaboration and commitment of relevant government agencies, the sector has witnessed monumental enthusiasm and growth,” she said.
Johnson further disclosed that the CNG programme has attracted nearly $1 billion in private sector investment, reflecting confidence in the market’s potential.
Assurance to Nigerians
Reassuring citizens, the Federal Government maintained that CNG will continue to be significantly cheaper and more affordable than petrol and diesel, even amid market-driven fluctuations.
Johnson stressed that the government remains committed to expanding access and affordability nationwide, while fostering greater private sector involvement to ensure the success of the CNG transition.
