In a major step towards reducing Nigeria’s carbon footprint and easing transportation energy costs, the Federal Government has announced that compressed natural gas (CNG) infrastructure will be operational in 30 states within the next six to nine months. This was disclosed during the launch of the Mobility CNG Supply Framework in Abuja by the Presidential CNG Initiative (PCNGI).
The initiative, part of Nigeria’s broader energy transition strategy, aims to provide cleaner, cheaper alternatives to petrol and diesel amid global climate change commitments and rising fuel prices. As of June 2025, CNG infrastructure is already operational in 20 states, with construction underway in several others.
Michael Oluwagbemi, Project Director and CEO of the Presidential CNG Initiative, revealed that over $500 million in private investment has been mobilised through the scheme. He described the expansion as a milestone in Nigeria’s energy future, noting that public interest in CNG is increasing rapidly.
“We’ve seen queues stretching for hours at Abuja filling stations. That shows demand is high. The response from the public is encouraging, and we are expanding capacity quickly to meet it,” Oluwagbemi said.
According to him, the number of functional CNG fuelling stations has jumped from just 20 to over 65 nationwide, with more than 175 stations under construction. In Ibadan alone, two new stations were launched recently in partnership with indigenous oil marketer, Bovas.
He also disclosed that the Dangote Group has committed to developing an additional 100 CNG stations, which will drastically boost accessibility and bring national coverage within reach. By the end of 2025, over 200,000 additional vehicles are expected to be converted to CNG, pushing the total number of CNG-powered vehicles in Nigeria to 300,000 — a sharp rise from just 4,000 in 2023.
The Federal Government’s long-term goal is to have at least one million vehicles running on CNG by 2027. The growth is being powered by a concessionary pricing model introduced in March 2024 by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which ensures CNG pricing remains affordable and insulated from speculative trade.
This model, according to Oluwagbemi, discourages arbitrage and ensures CNG is used strictly for its intended purpose—automotive transport.
The CNG rollout is also being backed by robust gas supply contracts. The Managing Director of the Gas Aggregation Company Nigeria (GACN), Chijioke Uzoho, said three major contracts have been executed, with gas supply now reaching 20 million standard cubic feet per day. He noted that contract timelines have been reduced drastically—from three years to just six months—highlighting improved efficiency in Nigeria’s gas commercialisation framework.
The adoption of CNG is expected to deliver substantial economic relief to Nigerians, especially commercial vehicle drivers. Already, the FG has projected up to 90% cost savings in energy for public bus drivers using CNG compared to petrol.
The initiative also aligns with the government’s commitment to reducing carbon emissions, improving energy security, and shifting Nigeria’s energy dependence away from imported refined petroleum products.
Experts note that the strategic shift towards CNG is not only an economic solution but an environmental one. With more cities grappling with air pollution from fossil fuel vehicles, CNG offers a cleaner-burning alternative.
Despite the strong momentum, challenges remain. Infrastructure rollout must keep pace with rising demand, and there are concerns around awareness, vehicle conversion capacity, and regulatory enforcement to prevent product diversion.
However, stakeholders remain optimistic. The private sector’s involvement, improved regulatory support, and public enthusiasm are seen as critical drivers for the success of the project.
With Nigeria aiming to become Africa’s leading hub for CNG-powered mobility, the next six months will be crucial. As Oluwagbemi summed it up:
“This is more than just infrastructure. It is a symbol of our national energy transition, one CNG station at a time.”