CNG Draws Over $2bn Investment as Nigeria Expands Gas-Powered Transport

• More than $2bn has been secured for CNG infrastructure and value-chain development since the Presidential Initiative on CNG was launched in 2023.

• Over 120,000 vehicles have been converted to CNG through more than 400 certified conversion centres, while over 90 refuelling stations are now operating.

• The Federal Government plans to expand the national CNG network to 1,000 stations as it targets lower transportation and logistics costs.

September 02, () — More than $2 billion has been secured for investments in Nigeria’s Compressed Natural Gas (CNG) infrastructure and value chain since the launch of the Presidential Initiative on CNG in 2023.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed this in a statement signed by his spokesman, Louis Ibah.

According to the minister, the investment has supported the expansion of CNG refuelling infrastructure, vehicle conversion centres, technical capacity and other components required to drive nationwide adoption.

He said more than 120,000 vehicles had been converted to CNG through a network of over 400 certified conversion centres, while more than 90 refuelling stations had been established.

The initiative has also trained over 7,700 automotive technicians and created more than 10,000 direct and indirect jobs, according to the minister.

Government targets 1,000 refuelling stations

Ekpo commended President Bola Tinubu’s recent directive for an additional 500 CNG refuelling stations, which would bring the planned national network to 1,000 stations.

He said the expansion would improve access to CNG and accelerate its adoption across the country.

The minister also commended state governors who had embraced the programme through investments and partnerships, while urging other states to participate.

He said expanding CNG adoption remained part of the Federal Government’s strategy to provide a cheaper, cleaner and more sustainable alternative to conventional transport fuels and reduce transportation costs.

CNG adoption expands across transport sector

The government has also procured and deployed 655 CNG buses and 5,123 CNG tricycles, complementing thousands of privately converted vehicles operating across public and commercial transport networks.

Ekpo said the growing adoption of CNG was providing evidence that the fuel was moving beyond being a future alternative to becoming a viable transportation fuel already in use across Nigeria.

He linked the programme to the government’s response to transportation and cost-of-living pressures that followed the removal of the petrol subsidy.

According to him, commercial transport operators, private vehicle owners and fleet managers are reporting fuel-cost savings and improved profitability, while commuters using CNG-powered buses are benefiting from lower fares.

“As more vehicles and fleets migrate to CNG, lower operating costs are increasingly benefiting commuters, businesses, farmers, traders and other productive sectors,” the statement quoted him as saying.

FG seeks wider CNG access

Ekpo said the objective was not merely to increase the number of CNG vehicles and refuelling stations but to translate fuel savings into lower transportation and logistics costs, ease living costs and improve economic productivity.

To sustain the expansion, he said the Ministry was working with the Presidential Initiative on CNG, the Midstream and Downstream Gas Infrastructure Fund, state governments, transport unions, operators, investors and other stakeholders.

The collaboration is expected to support the expansion of refuelling and conversion infrastructure, development of dedicated CNG corridors and improved access to underserved communities.

“The Federal Government will continue to work with investors and industry stakeholders to accelerate infrastructure deployment, deepen domestic gas utilisation and ensure that the benefits of the CNG programme reach Nigerians at the grassroots,” Ekpo said.