FG to build 500 CNG stations in three years

The Federal Government has announced plans to build 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria within the next three years.

The goal is to help Nigerians switch to cleaner and cheaper fuel, and to reduce the country’s heavy use of petrol.

The Executive Director of the Midstream and Downstream Gas Infrastructure Fund (MDGIF), Oluwole Adama, said the plan follows successful talks with a Chinese equipment manufacturer, Endurance Group.

According to Adama, the agreement includes creating a Special Purpose Vehicle (SPV) made up of the MDGIF, Bank of Industry, Endurance Group, and Séquor Investment Partners.

The company will be called the Compressed Natural Gas Auto Mobility Infrastructure Company.

This new company will:
Build 500 CNG refuelling stations
Develop gas supply infrastructure
Provide CNG and LNG trucks to move gas across all states, creating a “virtual pipeline”

Adama said the project will help reduce the long queues currently seen at existing CNG stations by increasing access and improving supply.

The government is pushing for more people to use CNG because it is cheaper than petrol and diesel, especially after the fuel subsidy removal. Officials say this will help stabilise transport costs, improve energy security, and reduce the need for importing fuel.

Nigeria has over 200 trillion cubic feet of gas, but the lack of infrastructure has made it difficult to use it effectively. The new CNG rollout is a major part of the Presidential CNG Initiative launched in 2023.

A presidential adviser, Oluwatoyin Subair, said the project supports President Tinubu’s energy security goals and will create jobs across the gas sector.
Endurance Group CEO, Eric Lin, said the company will lease CNG equipment to approved operators and ensure steady gas supply through a reliable nationwide network.

He explained that the distribution plan will send gas from major “mother stations” to northern and southern regions that need it most.
When completed, the project is expected to:
Expand the use of gas-powered vehicles
Reduce reliance on imported petrol
Support Nigeria’s move toward cleaner energy