Abstract

This study evaluates the socioeconomic impact and forecasted growth potential of Compressed Natural Gas (CNG) in Nigeria, with a specific focus on Lagos and Abuja. The investigation was driven by Nigeria’s need for affordable, sustainable, and cleaner energy alternatives amid rising petroleum prices and environmental concerns. Using a quantitative research design, data were collected through structured questionnaires administered to 400 respondents across key CNG user groups, including vehicle owners, transport operators, technicians, and energy professionals. Four hypotheses were tested using simple linear regression analysis to examine the impact of CNG usage on transportation costs, job creation, public health, and community development. Findings revealed that CNG usage significantly reduces transportation costs, making it a viable economic alternative for both private and commercial vehicle owners. The study also found that CNG adoption fosters job creation in vehicle conversion, gas distribution, and infrastructure development. Furthermore, it was established that increased CNG usage contributes to improved public health outcomes by reducing air pollution, particularly in urban centers. Lastly, the development of CNG infrastructure was shown to have a significant positive impact on community-level employment and development. The study concludes that CNG adoption holds substantial potential for advancing Nigeria’s energy transition and economic diversification agenda. It recommends expanding CNG infrastructure, introducing financial incentives, enhancing public awareness, and establishing regulatory frameworks to support broader adoption. These steps are critical to harnessing the full socioeconomic benefits of CNG in Nigeria.