The Lagos Chamber of Commerce and Industry (LCCI) has called for a sound regulatory environment and greater private-sector participation to accelerate Nigeria’s transition to Compressed Natural Gas (CNG).
The President, LCCI, Mr Gabriel Idahosa, who made the call on Thursday in Lagos at the chamber’s fourth quarter state of the economy news conference, noted that CNG was a cleaner and more affordable energy source.
He noted that amidst the global drive toward decarbonisation and following the 2023 removal of petrol subsidies, Nigeria’s CNG industry had reached a pivotal turning point with strong potential to transform the transport and industrial sectors.
Idahosa described CNG as a vital pillar of the nation’s evolving energy landscape, offering a cleaner and cheaper substitute for petrol and diesel while creating opportunities for private investment across the value chain.
According to him, Nigeria’s CNG transition presents immense potential in gas compression, transportation, retail distribution, conversion and maintenance services.
“Industry projections show the sector can create tens of thousands of jobs through the expansion of refuelling stations, conversion workshops, logistics and cylinder assembly plants.
“LCCI notes that localising conversion kit production to achieve 40 per cent local content by 2027 would further strengthen Nigeria’s N6.7 billion automobile components industry.
“It will reduce foreign exchange exposure, and build indigenous technical capacity,” he said.
Idahosa, however, identified key challenges slowing adoption, including high conversion costs—estimated at about N1.5 million per vehicle—limited infrastructure, and shortage of certified technicians, currently about 320 nationwide.
He cited regulatory fragmentation and inconsistent policy enforcement as factors undermining investor confidence and slowing market expansion.
“In spite of these constraints, Nigeria has attracted over 400 million dollars in cumulative CNG investments as of 2025, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
“The market fundamentals remain robust, driven by favourable economics, government incentives, and growing investor appetite for cleaner energy solutions,” he stated.
The LCCI president urged government to maintain the existing subsidy framework until wider adoption was achieved and citizens began to experience tangible benefits of CNG usage.
He called for robust engagement with relevant government agencies, including the NMDPRA, Standards Organisation of Nigeria (SON), and Nigeria Automotive Design and Development Council (NADDC).
Idahosa also called for engagement with the Federal Road Safety Corps (FRSC), transport associations and the media, to ensure inclusive implementation.
He emphasised that public awareness campaigns should be intensified to promote CNG as a clean, environmentally friendly, and cost-effective energy source.
“Nigeria’s CNG journey has moved beyond the pilot stage into a structured national rollout. The combination of abundant gas reserves, sound economics, and growing private participation positions the sector for transformative growth.
“Realising this potential will require coordinated regulatory oversight, enhanced safety enforcement, affordable financing mechanisms, and aggressive infrastructure expansion across all regions,” he said.
Idahosa also expressed concern over the reported decline in Nigeria’s gas output to 191,385.21 million standard cubic feet (mmscf) in September 2025, from 219,280.73 mmscf recorded in August 2025.
He described the 13 per cent month-on-month decline as a worrying development for an economy seeking to expand domestic gas utilisation and boost export revenues under the “Decade of Gas” Agenda.
He attributed the drop to operational downtime, pipeline vandalism, and supply chain disruptions arising from controversies and uncertainties in the oil and gas sector in recent months.
Idahosa recalled that it had earlier warned that unresolved controversies in the sector were creating uncertainty and could disrupt production and logistics.
He noted that recent labour unrest in the gas sector had affected gas production and distribution, with adverse consequences for power generation, gas supply to households, and energy costs for businesses.
According to him, lower gas production directly affects power generation, especially for thermal plants that rely on gas as feedstock, and can worsen electricity supply challenges and slow industrial output.
“We need a well-positioned gas production and supply ecosystem that is not easily compromised by unpredictable actions of various stakeholders whose decisions can jeopardise critical investments in the sector.
“Nigeria’s shift toward gas as a transition fuel—particularly for CNG, LPG, and industrial uses—depends on consistent upstream output and regulatory stability.
“To reverse the decline, we urge government to accelerate investment in gas infrastructure, including pipelines, processing plants, and storage facilities,” he said.
Idahosa also called for improved stakeholder engagement to reduce labour unrest.
He said a review of domestic gas pricing frameworks to attract investment and greater regulatory consistency to mobilise long-term capital into gas exploration and midstream projects were critical.
