The federal government has moved to reduce transportation costs by accelerating the adoption of compressed natural gas (CNG) as an alternative to petrol, which is sold at N380 per litre, compared to over N1,200 per litre for fuel.

The initiative, led by the Presidential Compressed Natural Gas Initiative (Pi-CNG), is part of efforts to lower transport costs for millions of low-income operators across Nigeria.

Credit scheme for transport workers 

To achieve its objective, Pi-CNG has partnered with financial institutions to expand access to affordable credit for vehicle conversion to CNG, Punch reports.

Speaking at the flag-off ceremony in Abuja on Wednesday, April 22, Ismaeel Ahmed, the Chief Executive Officer of the initiative, said affordability remains the biggest obstacle to CNG uptake.

The initiative includes a partnership with the Presidential Compressed Natural Gas Initiative and Electric Vehicles, Moniepoint Microfinance Bank Limited, Nigerian Consumer Credit Corporation, and National Credit Guarantee Company Limited.

Ahmed said the programme is designed to eliminate the upfront cost barrier that has slowed the adoption of alternative energy vehicles.

He said: “This is a very significant partnership. The barrier is the cost of the conversion kit and installation. “We are reducing that barrier. The kits are being supplied at cost, with no profit margin, because the goal is mass adoption.”

Oceangate Engineering Oil & Gas Limited has said it will appeal to the recent ruling of the Federal High Court ordering the forfeiture of certain assets.

Barr. Nnenna Onyeaso, the Company Secretary said in a statement on Thursday insisting that neither the company nor its leadership was found guilty of any wrongdoing.

Onyeaso said that the firm has described the court’s decision as a civil asset forfeiture order based on suspicion rather than proof, stressing that the judgment did not establish any criminal liability against the organisation.

According to her, the company maintain that it has already directed its legal team to file an appeal, expressing confidence in the judicial process and the outcome of a thorough review of the case.

“To be clear, this ruling is a civil asset forfeiture order with no finding of wrongdoing against Oceangate or its leadership.

“The court’s decision rested on a legal standard of suspicion, not proof, and it is one we intend to pursue fully through the appeals process,” she said in a statement.
The firm secretary also said that Oceangate has reiterated its belief in the rule of law, noting that the appellate system exists to address such outcomes.

She added that the company remained confident that the facts of the case will ultimately affirm its integrity and business practices.

Onyeaso said that the firm also emphasised that its operations remained unaffected, stating that it continues to provide employment for many Nigerians while contributing to the country’s energy sector and broader economy.

“We have always believed in the ability of the judicial process, and that belief has not wavered,” she added.

She noted that Oceangate further expressed appreciation to its employees, partners, and clients for their continued support amid the development, assuring stakeholders of its commitment to transparency and accountability.

The Secretary said that the company reaffirmed its confidence in Nigeria as a viable destination for investment, describing the country as a land of equity, growth, and opportunity.

“We remain committed to the continued growth of our business and the communities we serve as we are optimistic that justice will prevail at the end of the legal process.

The steady rise in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, has intensified economic hardship across Nigeria, with prices climbing to nearly N1,400 per litre in several parts of the country, triggering widespread anxiety among transporters, commuters, and businesses.

Findings across major cities indicated that the latest surge, driven largely by rise in the price of crude oil, is shrinking incomes, inflating transport fares, and worsening the cost-of-living crisis for millions of Nigerians.

With the price of crude oil hitting almost $120 per barrel last week before settling at $112 over the weekend as the Middle East crisis rages, Dangote also adjusted its gantry price from N1,175 to N1,245 per litre.

In response to the latest increase, marketers also adjusted pump prices across the country with new prices ranging from N1,310; N1,325; N1,370 and N1,400 per litre depending on locations.

In Lagos, commercial drivers say the rapid increase in fuel prices is eroding their profits and threatening their livelihoods. At several filling stations, prices fluctuated between N1,320 and N1,330 over the weekend, with some outlets briefly selling as high as N1,380 before adjusting downward.

At stations operated by the Nigerian National Petroleum Company Limited (NNPCL), pump prices were revised upward twice within days, reflecting the volatility in the downstream sector.

Toheeb Sulaimon, a commercial driver operating along the Ogba–Ikeja route, said his daily earnings have dropped drastically due to rising fuel costs and declining passenger traffic.

“When fuel was around N800 per litre, I could spend about N9,000 on fuel and still make up to N30,000 in a day. Now, everything has changed. The cost has doubled, but passengers are fewer,” he said.

Maduka Chibo, another operator, said his daily fuel expenditure has risen sharply to over N20,000, compared to about N10,000 when petrol sold at N800 per litre.

Northern cities hit N1,390

In Kano, petrol prices climbed as high as N1,390 per litre, with several independent marketers adjusting their rates upward in response to supply costs.

Stations such as AA Rano and others revised prices from around N1,330 to between N1,385 and N1,390.

The increase has triggered a ripple effect on transportation, with commercial tricycle operators hiking fares significantly.

A resident, Ismail Mabo, recounted being charged N4,000 for a trip that would normally cost about N1,000, accusing operators of exploiting the situation.

Another resident, Abba Kabir, warned that the sustained rise in fuel prices could force many car owners to abandon their vehicles.

“At this rate, people will stop using their cars. Some may even convert them to commercial use just to survive,” he said.

Abuja, Kwara record fresh hikes

In Abuja, pump prices have also surged, with several filling stations now selling between N1,361 and N1,370 per litre. The increase followed a fresh pricing template issued by MRS Oil Nigeria Plc to its dealers, signaling a new benchmark for the market.

The company pegged its pump price at N1,332 per litre, with variations depending on delivery and collection terms, further highlighting the influence of supply chain costs.

Across filling stations in the Federal Capital Territory, prices have continued to edge upward, deepening concerns among residents already grappling with high living expenses.

In Ilorin, Kwara State, the situation is no different. A survey showed petrol selling between N1,295 and N1,343 per litre, depending on the outlet.

Residents say the persistent increases are stretching household budgets to the limit. Oladuni Lateefat, a civil servant, said her family’s daily expenses have surged beyond manageable levels.

“What we used to manage with N4,000 daily is no longer enough. Transportation alone is taking a huge part of our income,” she said, adding that she may stop using her car to commute.

Businesses are also feeling the impact. A cement dealer in Ilorin reported that rising fuel costs have already pushed up the price of cement by N500, with fears of further increases.

South-South faces black market surge

In Port Harcourt and Yenagoa, petrol prices have risen to between N1,300 and N1,400 at official stations, while black market rates have soared as high as N1,800 per litre.

The disparity has worsened the burden on residents, particularly in areas where access to formal filling stations is limited.

Commuters say transport fares have doubled in some cases. A trip that previously cost N300 to N400 in Port Harcourt now goes for as much as N700, reflecting the direct pass-through effect of fuel costs.

Similarly, inter-state transport fares have increased, with journeys such as Yenagoa to Uyo rising from about N9,000 earlier in the year to N11,000.