President Bola Tinubu has ordered the immediate deployment of over 100,000 Compressed Natural Gas (CNG) conversion kits across Nigeria. This directive comes as a direct response to a severe domestic fuel crisis, with petrol prices now exceeding N1,000 per litre. The federal government's plan, however, shows conflicting details regarding its timeline and scale, with one report stating deployment will begin within the next two to three weeks, contradicting the stated immediacy, and another citing 'about 100,000' kits rather than 'over 100,000'.
Fuel prices in Nigeria have hit over N1,000 owing to the war between Iran and the United States and Israel. This international conflict has directly impacted global energy markets, with Iranian attacks on shipping closing the strategic Strait of Hormuz. A quarter of the world’s seaborne oil and a fifth of all liquefied natural gas normally pass through this vital maritime chokepoint.
The domestic price shock was further cemented on Monday when the Dangote Refinery increased the price of petrol to ₦1,175 per litre. This move by a major domestic supplier solidifies the new, higher price floor for consumers and businesses across the country. The ripple effects are being felt acutely, with diesel prices also increasing from around N1,000 per litre to about N1,500.
Nigerian filmmaker Kunle Afolayan stated he has been struggling to cope with the current diesel price of about N1,500 per litre. His production company, KAP Village, spends about N11 million on diesel within four to five weeks, illustrating the crippling operational costs now facing Nigerian industry. This anecdotal evidence underscores the broad economic strain triggered by the energy price surge.
Concurrently, the federal government says fiscal incentives will unlock the long-delayed Bonga Southwest Aparo deepwater project. That project is expected to attract about $20 billion in investment, representing a separate, long-term strategy to boost Nigeria's oil and gas production capacity. This deepwater initiative operates on a different timeline from the urgent CNG kit deployment.
The geopolitical trigger for the crisis shows no sign of abating, as Iran has insisted it is not seeking a ceasefire. The conflict has already resulted in significant military casualties, with about 140 US military personnel wounded since the start of the war and seven deaths already announced. The ongoing hostilities guarantee continued volatility in global energy supply chains.
Nigeria's infrastructure for alternative fuel remains in development, with about 77 CNG refilling stations currently at various stages of development nationwide. The success of the president's conversion kit initiative is heavily dependent on the parallel expansion of this refueling network. Without widespread access to CNG, the kits' utility for vehicle owners will be severely limited.
The federal government's next concrete step is the rollout of the CNG conversion program, which conflicting reports indicate will commence within the next two to three weeks. This deployment represents the administration's primary short-term policy response to a fuel crisis compounded by distant war and immediate refinery pricing decisions.
