FG plans 500 CNG stations to cut petrol use
The Federal Government has announced a major national infrastructure push aimed at deepening Nigeria’s transition to cleaner, cheaper automotive fuel, with a plan to establish 500 Compressed Natural Gas refuelling stations over the next three years.
The project, which forms one of the most ambitious components of the country’s gas expansion drive, is expected to significantly reduce dependence on Premium Motor Spirit and ease the pressure on petrol consumption across the federation.
The initiative follows the conclusion of high-level negotiations between the Midstream and Downstream Gas Infrastructure Fund and Chinese manufacturing conglomerate, Endurance Group, on the mass rollout of CNG infrastructure nationwide.
Executive Director of the MDGIF, Oluwole Adama, confirmed the development in an official statement issued on Sunday, describing the agreement as a “landmark step in Nigeria’s shift toward a gas-based industrial and transportation economy.”
According to Adama, the agreement has paved the way for the establishment of a government-backed Special Purpose Vehicle that will drive the development, management, and operation of the new CNG infrastructure network.
FG Plans 500 CNG Stations to Cut Petrol Use: Inside the New SPV
The statement revealed that the new SPV—known as the Compressed Natural Gas Auto Mobility Infrastructure Company—will be jointly promoted by the MDGIF, Bank of Industry, Endurance Group, and Séquor Investment Partners.
The entity is tasked with delivering a comprehensive nationwide network that includes:
500 integrated CNG refuelling stations
Liquefied to Compressed Natural Gas (LCNG) supply hubs
CNG and LNG transportation trucks equipped with truck-mounted cascades
A virtual pipeline network to supply gas to underserved locations across Nigeria
Adama explained that the project directly addresses long-standing infrastructure deficits that have slowed the adoption of CNG-powered mobility solutions.
He noted that current CNG stations in Nigeria are insufficient, often overwhelmed, and poorly distributed, leading to long queues and unstable supply.
“This collaboration underscores our collective commitment to bridging the infrastructure gaps in the CNG value chain.
The rollout of these stations will greatly expand access, ease congestion at existing stations, and ensure a steady supply of affordable, cleaner fuel nationwide,” he said.
Cleaner Energy Push Gains Momentum
The renewed government focus on expanding CNG adoption comes amid pressure on the downstream market following the removal of petrol subsidy in 2023 and a sharp rise in PMS prices.
Federal officials have repeatedly positioned CNG as the most viable long-term alternative capable of stabilising transport costs, improving energy resilience, and reducing the country’s foreign exchange exposure linked to imported fuels.
Nigeria, despite possessing over 200 trillion cubic feet of proven natural gas reserves, has historically lacked a robust midstream network to support commercial-scale gas utilisation.
Experts argue that CNG adoption could leverage domestic gas abundance, enabling the country to save billions annually while expanding opportunities in manufacturing, logistics, and automotive services.
The planned rollout aligns with the mandate of the Presidential Compressed Natural Gas Initiative, also launched in 2023, which aims to diversify Nigeria’s transport fuels, encourage autogas retrofitting, and reduce reliance on PMS and diesel.
Presidency, Manufacturers Endorse the Rollout
Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, stated that the establishment of CAM InfraCo aligns directly with President Bola Tinubu’s energy security agenda and ongoing economic reforms.
He added that the initiative would help moderate transportation costs, stimulate local investment, and generate new employment opportunities across the domestic gas value chain.
“This project will deepen CNG usage nationwide and support the broader macroeconomic plan of this administration.
A reliable CNG ecosystem means more stable transport costs, lower inflationary pressure, and increased private-sector participation,” Subair noted.
On his part, the Chief Executive Officer of Endurance Group, Eric Lin, emphasised that the SPV is structured to build a commercially viable nationwide refuelling, maintenance, and logistics ecosystem.
According to him, the leasing and logistics model adopted by CAM InfraCo will allow certified operators to access CNG equipment without bearing the upfront costs.
“CAM InfraCo’s model is designed to ensure a sustainable national CNG refuelling network.
Our virtual pipeline system will deliver gas from mother stations to regions with limited infrastructure, allowing us to serve underserved northern corridors and high-demand southern hubs efficiently,” Lin explained.
Expected National Impact
Energy analysts say the announcement marks one of the most significant steps in Nigeria’s gas transition efforts in decades.
Beyond expanding access to CNG for motorists, the initiative is expected to:
Reduce reliance on imported petrol
Lower transportation costs for households and businesses
Strengthen domestic gas utilisation
Create employment within logistics, construction, maintenance, and equipment leasing
Support environmental goals by reducing carbon emissions from PMS and diesel engines
With 500 stations planned across all states, the expansion is likely to reshape Nigeria’s transportation landscape, enabling millions of motorists to switch to cleaner fuel options over time.
Industry observers also expect the project to complement the government’s rollouts of CNG buses, conversion centres, and support incentives for investors in the autogas sector.
Adama concluded that the plan represents a long-term commitment to establishing a modern, efficient, and accessible gas mobility infrastructure that will support national development objectives.
As implementation commences, stakeholders within the oil and gas industry say the project has the potential to redefine Nigeria’s energy economy—provided the rollout remains consistent, well-funded, and backed by strong regulatory support.
