In an attempt to address major causes of pollution from gas flaring and transportation, the Nigerian government introduced the use of CNG (compressed natural gas) as an alternative fuel for automobiles in 1997. However, progress has been very slow as the government has concentrated more on LNG (liquefied natural gas) exportation, LPG (liquefied petroleum gas), and gas to power projects. These projects have aided in reducing gas flaring, but pollution from transportation is still increasing. This article provides an extensive review of the benefits and recommendations to foster the use of CNG as an alternative fuel for automobiles in Nigeria. The use of CNG as an alternative fuel for automobiles in Nigeria has benefits ranging from reduction in pollution to an increase in productivity, efficiency, safety, and energy security. Thus, to encourage the use of CNG as automobile fuel in Nigeria, the government needs to develop a targeted carbon tax system, favourable market-based policies and natural gas transmission and distribution network; increase availability and access to CNG refuelling stations and public awareness; subsidise vehicle conversion expenses; begin with bi-fuel/dual-fuel automobiles; assign responsibilities; reform gas pricing; partner with automobile producers in Nigeria.