Nigeria’s Compressed Natural Gas (CNG) sector has recorded a remarkable $980 million in private sector investments over the past 18 months, signalling rapid growth in what officials describe as the country’s “fastest-growing energy sector.” This milestone coincides with a surge in vehicle conversions from 4,000 to nearly 100,000, driven by strategic government incentives and private sector participation.
The announcement was made by Engr. Michael Oluwagbemi, Chief Executive Officer and Programme Director of the Presidential Compressed Natural Gas Initiative (PCNGI), during the launch of the Portland Gas Ltd/NASENI CNG Daughter Station, Auto Conversion, and Training Centre along the Kubwa Expressway in Abuja.
Oluwagbemi highlighted the initiative’s role in cushioning the impact of fuel subsidy removal, making transportation more affordable and environmentally sustainable. “CNG provides up to 90 per cent savings on fuel costs for motorists,” he noted, emphasising that low-income earners, women, schoolchildren, and the elderly, who rely heavily on public transport, would benefit the most.
The programme, championed by President Bola Tinubu, has expanded rapidly across the country. From operating in just five states last year, CNG infrastructure now spans 20 states with over 315 conversion centres nationwide. Officials project that by the end of 2025, at least 30 states and the Federal Capital Territory will have active CNG facilities.
Private sector investments have played a pivotal role in this expansion. Notable contributors include BUA and Nigerian Bottling Company, which collectively invested N720 billion in CNG trucks and the establishment of 100 fuelling stations. Oluwagbemi also stressed the need to protect CNG allocated for vehicles from diversion to gas-fired power plants, ensuring the programme’s intended benefits reach end-users.
Portland Gas Ltd Chief Executive Officer, Folajimi Mohammed, described the new station as a comprehensive gas hub, integrating an auto-conversion centre, training facility, and refuelling station. “This station is a full hub for gas. We have also received approval to sell liquefied petroleum gas for domestic use, complementing the auto-gas services,” he said.
Mohammed added that the cost of vehicle conversion to CNG has been subsidised by PCNGI, making it free for members of the Nigerian Association of Road Transport Owners, National Union of Road Transport Workers, and ride-hailing services such as Bolt. To facilitate nationwide CNG adoption, the Nigerian National Petroleum Company Limited is accelerating work on the Ajaokuta-Kaduna-Kano gas pipeline, extending the programme to northern Nigeria.
Similarly, Khalil Halilu, Director-General of the Nigerian Agency for Gas Engineering Infrastructure (NASENI), emphasised the strategic location of the Kubwa Expressway station, connecting northern and southern Nigeria. He assured that collaboration between NASENI and PCNGI would eliminate long queues at CNG stations within the next two years, signalling increased efficiency in fuel distribution.
In response to concerns about potential diversion of auto-CNG to power plants, the House of Representatives pledged legislative measures to protect allocated gas for vehicular use. Speaker Tajudeen Abass, represented by Alexander Mascut, affirmed, “Lawmakers will introduce laws to ensure that gas designated for autogas users is safeguarded.”
The CNG initiative not only reduces fuel costs for Nigerians but also supports environmental sustainability and aligns with global energy transition trends. Experts say the sector’s rapid growth, underpinned by public-private partnerships and robust government incentives, positions Nigeria as a regional leader in compressed natural gas adoption.