…FG Ends Subsidy Support

The federal government’s decision to remove subsidy support on Compressed Natural Gas (CNG) has triggered a sharp rise in pump prices, with motorists now paying as much as ₦450 per standard cubic metre (scm) across major cities.

For many Nigerians, the development is a fresh blow to household budgets already strained by high petrol and diesel costs.

Motorists and Transport Operators React

At a CNG refilling station in Lagos, commercial driver Ibrahim Yusuf expressed frustration:
“We switched to CNG because it was affordable after petrol subsidy was removed. Now at ₦450, it’s no longer the relief we hoped for.”

Transport unions are warning that fare adjustments may be inevitable as operators struggle with rising operating costs, a situation that could further fuel inflation in food and essential goods.

Why the Price Jumped

According to industry experts, the spike in CNG prices is driven by several key factors:

Subsidy Removal: Government’s withdrawal of support has exposed consumers to full market pricing.

Rising Distribution Costs: Inadequate infrastructure and high logistics expenses for transporting gas have pushed prices upward.

Exchange Rate Pressures: The weaker naira continues to inflate the cost of equipment and technology used in gas processing and distribution.

Growing Demand: With thousands of vehicles converting from petrol to CNG, demand has quickly outpaced supply.

Government’s Position

Officials say the subsidy removal is part of broader reforms to reduce fiscal pressure and encourage private investment in the gas value chain.

The Presidential CNG Initiative (PCNGI) has promised to accelerate the rollout of new refilling stations and conversion workshops nationwide to ease supply constraints and stabilize prices.

Energy policy analyst Dr. Amina Adediran noted:
“In the short term, consumers will feel the pinch, but if government delivers on infrastructure expansion, CNG could still become a cheaper and cleaner alternative to petrol.”

What Lies Ahead

As CNG prices climb, Nigerians brace for higher transport fares and ripple effects across the economy. Analysts warn that unless urgent investments are made in infrastructure and distribution, the government’s clean energy transition plan could lose public support.

For now, commuters and businesses must adjust to the new reality, where the promise of cheaper CNG fuel faces its toughest test yet.

Nigeria continues to grapple with the economic, environmental, and social costs of gas flaring despite its status as one of Africa’s top producers of natural gas.

Recent data reveals that in 2024 alone, the country flared natural gas valued at $1.05 billion, equivalent to electricity generation potential of 30.1 thousand GigaWatt hours, enough to drastically reduce the nation’s chronic power shortages.

The penalties associated with gas flaring, estimated at $602 million, remain largely unenforced, raising concerns about regulatory weakness and ineffective oversight.

The Nigerian government has introduced several policies, including the Petroleum Industry Act (PIA) and the Gas Flaring, Venting & Methane Emissions (Prevention of Waste and Pollution) Regulations, 2023, aimed at tackling this menace. Additionally, the Nigerian Gas Flare Commercialization Project (NGFCP) was launched as a market-based solution to allocate flared gas to third-party investors for industrial and power sector use. Yet, implementation challenges have stifled progress.

In an exclusive commentary on the issue, Dr. Saheed Abudu, a researcher and lawyer specializing in Energy and Natural Resources Law and International Investment Law, and former researcher at the Tulane Center for Energy Law, described gas flaring as a symptom of Nigeria’s regulatory inertia. “If Nigeria is to truly end this wasteful practice, it must look beyond its borders and learn from the successful blueprints of other oil and gas powerhouses. The framework of the NGFCP is theoretically sound, but without strong enforcement and political determination, it risks becoming another unfulfilled policy,” Dr. Abudu said.

He noted that the persistent lack of political will, overreliance on International Oil Companies (IOCs), and repeated shifting of flare-out deadlines undermine Nigeria’s credibility. “The continuous revisions of flare-out deadlines—from 2025 now extended to 2030—together with the reluctance of producers to pay fines, underscore a regulatory environment that has failed to hold operators accountable. These delays communicate that compliance is optional,” he emphasized.

Dr. Abudu further highlighted deep-rooted institutional problems. “Significant bottlenecks persist, including administrative delays, overlapping regulatory mandates, and above all, resistance from producers who see flare gas utilization as disruptive to their core oil operations. Inadequate infrastructure for gas gathering and distribution compounds the problem, making many flare sites commercially unviable without massive upfront investments,” he explained.

Drawing comparisons with other resource-rich nations, Dr. Abudu argued that Nigeria must adopt proven strategies. He explained that Norway adopted a top-down approach where no gas utilization plan meant no project approval, and combined this with a stringent carbon tax that forced companies to innovate and invest in capture technologies. Saudi Arabia, through its state-owned oil giant Saudi Aramco, pursued a national strategy that treated gas as a resource, not waste. With a master gas gathering plan and billions invested in infrastructure, flaring was phased out, reflecting the level of corporate-level commitment Nigeria has lacked. Angola, he added, offers the most relevant case for Nigeria. After decades of flaring, Angola rolled out its National Gas Master Plan, partnered with international investors, and, with World Bank support, built the infrastructure needed to monetize gas. Their progress, he said, proves that resource stewardship is possible with political will and foreign partnerships.

Dr. Abudu outlined a roadmap Nigeria could adopt to reverse its losses and position itself as a competitive gas economy. “Nigeria must transition to stricter enforcement of regulations, making flare penalties genuinely punitive rather than symbolic. No new oil project should proceed without a credible gas utilization plan. The government must also act as a catalyst, as Angola did, by incentivizing investment in gas infrastructure and ensuring that producers cannot simply evade their obligations,” he stressed.

He added that empowering third-party investors to participate in gas commercialization is key, but this requires deliberate policies to strengthen the domestic gas market. “The government must make the Nigerian gas market more competitive and attractive for investors. Incentives, security of investments, and legal certainty are crucial. Without these, potential investors will continue to shy away, leaving the problem unresolved,” he said.

Experts agree that ending gas flaring is not just about environmental sustainability but also about unlocking economic potential. If properly harnessed, flared gas could power industries, create jobs, and generate billions in revenue. Dr. Abudu concluded with a stark warning: “The flames burning across the Niger Delta are not merely an environmental hazard; they represent wasted economic opportunities and human development potential. Nigeria cannot afford to treat gas flaring as business as usual. It must move from rhetoric to decisive action.”

The management of Dangote Cement Plc has said that it is saddened by the passing this evening of Ruth Otabor, who was injured in a recent road incident involving one of its trucks in Auchi, Edo State.

Ruth was hit by a Dangote Cement truck on August 13, 205 close to her school, Auchi Polytechnic.

In a statement issued this evening in Lagos, the management of Dangote Cement said “on behalf of the entire Dangote Group, we extend our heartfelt condolences to her family, friends and loved ones at this difficult time”.

Throwing some light on what the company has been doing to save the life of Ruth, the management said that “since the accident, our officials and insurance partners have been by her side, covering all financial and medical costs and supporting her family”.

It disclosed that arrangement had been made for her to be flown to India for advanced treatment pending medical clearance by her doctors, but regretted that “despite these efforts and Ruth’s brave fight to live, we lost her today”.

The management said: “At Dangote Group, safety, accountability, and compassion remain at the core of our operations”, adding that “we remain committed to strengthening our safety systems and supporting those affected in moment of tragedy”.