In a major stride towards achieving energy sustainability and reducing transport costs, the Federal Government of Nigeria has attracted over $791.49 million in Compressed Natural Gas (CNG) investments within two months—May and June 2025. This significant inflow of private sector capital marks a pivotal phase in the ongoing implementation of the Presidential Compressed Natural Gas Initiative (PCNGI).
According to a confidential document from the PCNGI Secretariat obtained exclusively by our correspondent, the surge in CNG investment spans across infrastructure, conversion kits, logistics, and digital platforms. It signals increased investor confidence in Nigeria’s clean energy transition and the viability of the CNG ecosystem.
“This sharp rise in investment is a direct result of renewed investor confidence, stronger policy direction, and proof of concept seen in the ongoing nationwide deployment,” the report noted.
Between July 2024 and June 2025, the government mobilised over $980 million in total investment into the CNG framework. This has enabled the conversion of 1,440 petrol vehicles to CNG across 20 states, the procurement of over 5,000 tricycles, and 807 CNG-powered buses to bolster mass transit and reduce fuel consumption costs.
So far, the initiative has trained over 5,500 autogas technicians, deployed 65 mother refuelling stations, and constructed 175 daughter stations, 30 of which are already operational. Additionally, 300 new conversion centres are in place, while 260 are in advanced stages of completion.
The PCNGI criticised Nigeria’s continued reliance on petrol imports, citing a daily subsidy of over 75 million litres in 2023, which cost the country approximately ₦1 trillion, despite Nigeria being one of the world’s richest nations in natural gas reserves.
“Nigeria continues to subsidise petrol despite producing over 1.2 million barrels of crude oil daily. This is economically unsustainable,” the document added.
The government aims to convert 1 million vehicles to run on CNG by 2027, while training at least 25,000 auto-gas technicians. It also plans to deploy 250,000 new bi-fuel vehicles—a strategy aimed at significantly slashing transport costs and reducing CO₂ emissions by over 57%.
According to PCNGI’s economic outlook, a full-scale CNG adoption could result in fuel cost savings exceeding ₦500 billion while creating over 300,000 indirect jobs. Key partners in the programme include NIPCO Gas, state governments, and the Federal Ministry of Finance, under the coordination of the Office of the Special Adviser to the President on Energy.
Recent data shows that out of 23,845 CNG kits ordered in 2023, 17,346 have been delivered, with 16,672 already deployed. An additional 27,100 kits and 53,000 cylinders are currently warehoused awaiting dispatch. Moreover, 5,213 tricycles, 531 petrol-to-CNG buses, and 40 electric buses have been received as part of the transition plan.
In a bid to align with international best practices, the Standards Organisation of Nigeria (SON) has introduced technical benchmarks for engine compatibility, vehicle conversions, and refuelling stations. The government is also developing the Nigeria Gas Vehicle Monitoring System (NGVMS) to ensure compliance, track emissions, and enhance safety.
Despite strong momentum, the report flagged infrastructure bottlenecks and inconsistent gas availability as key challenges. However, it stressed that “proactive planning, rapid team deployment, and clear policy direction” have helped minimise risks.
“Only one incident during adoption is too much,” the report cautioned. “Strict quality control, tech-based monitoring, and robust enforcement are non-negotiable.”
With nations like China, Iran, and India leading in CNG adoption, Nigeria’s bold push is positioning it as a potential model for sustainable transportation across Africa. The PCNGI targets 1,000 auto-gas conversion workshops by 2027 with the capacity to handle 250,000 vehicle conversions annually.
As fuel prices remain volatile, Nigeria’s investment in domestic CNG solutions reflects not only an economic imperative but a climate-conscious commitment to cleaner, more affordable transport options.