I think you shouldn't have any problems applying for Naturalisation. Before you can apply for Passport you need to become a citizen. Check the Application Stages ate the home page of this site and also check Home Office Web Site for Naturalisation. Citizenship and Naturalization is same thing. Citizens are born in that country and Naturalised are the other country citizens that are naturalised into the process. They have same rights after naturalisation.
Remember that Passport is only for citizens of that country. So if you are not a citizen you need to become one. When you say Right to Abode, I am assuming that you have Indefinite Leave to Remain (ILR)