ASSESSING THE ECONOMIC IMPACT OF COMPRESSED NATURAL GAS (CNG) IN NIGERIA

Research Problem: Nigeria is blessed with massive crude oil deposits and significant transportation system that relies heavily on conventional fuels such as petrol and diesel despite its negative impacts on the economy and environment.The objectives of this study are toassess the financial benefits of CNG initiatives for commuters as well as to examine the impact of CNG on the Nigerian economy. Methods/Theory: The study adopts theenergy economics theory as its theoretical framework of analysis usingadescriptive and exploratory research design usingboth qualitative and quantitative research methods to assess the economic impact of Compressed Natural Gas (CNG) in Nigeria. The purpose of combining qualitative and quantitative data was to provide a more nuanced and grounded understanding of the issue from multiple stakeholder perspectives: the suppliers (conversion outlets), the operators (drivers), and the end-users (commuters). Results: Findings revealed that the use of CNG have not resulted into tangible fare reductions for commutersand the macroeconomic benefits that is to be seen in reduced fuel import dependence and job creation are being stifled dueto failures incritical infrastructure. Conclusion This study set out to assess the economic impact of Compressed Natural Gas (CNG) in Nigeria, navigating the complex interplay between its significant potential and the stark realities of its adoption. The findingspresent a clear and consistent narrative; CNG holds immense promise for delivering financial savings, enhancing energy security, and contributing to a sustainable energy transition, but its current economic impact is severely constrained by a confluence of infrastructural, financial, and regulatory barriers. Key Contributions to Knowledge: It forms a foundation for future studies into how CNG has affected the economic conditions of both Vehicle owners and commuters in terms of transportation and its cost. Recommendation The study therefore recommendsa massive rollout of CNG refueling stations, andpublic-private partnerships investments to boost CNG adoption in the country.