On Wednesday, September 3, 2025, the Presidential Compressed Natural Gas Initiative (PCNGI) clarified that the Federal Government does not subsidize Compressed Natural Gas (CNG), addressing recent pump price increases by private operators like NIPCO Gas, as stated in a press release reported by Vanguard and The Punch (Web:0, Web:4). The PCNGI emphasized that pricing is determined by private sector players, with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) responsible for regulation, not the Initiative (Web:0). Since April 2024, the NMDPRA has enforced an incentive-based pricing framework ensuring CNG remains cheaper than petrol and diesel, with measures to curb price gouging (Web:0, Web:10).
The PCNGI, collaborating with the Gas Aggregation Company of Nigeria (GACN), has attracted over $1 billion in investments to the CNG sector in the last 18 months under President Bola Tinubu’s administration, aiming for a transparent, competition-driven market to lower costs over time (Web:0, Web:8). Despite temporary supply challenges, which the Initiative described as typical for emerging markets, it reaffirmed its commitment to expanding supply and protecting consumers while maintaining investor confidence (Web:0). X posts from @PCNGI_NG (September 3, 2025) highlighted the sector’s $1.2 billion investment and 67% adoption rate in urban areas, while @Naija_Activist noted 59% public concern over price stability, citing a 2025 Afrobarometer survey (Post:3). The statement follows NIPCO’s price hike from ₦200/kg to ₦320/kg in August 2025, prompting scrutiny amid Nigeria’s 34.19% inflation rate (NBS, 2025; Web:4, Web:12).
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