Nigeria currently operates about 160 Compressed Natural Gas refuelling stations, with another 170 facilities under development or awaiting regulatory approval, according to the Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, Ismaeel Ahmed. President Bola Tinubu has ordered an additional 500 CNG infrastructure units to be developed through the MDGIF, with facilities expected to come online between now and early 2027, Ahmed said at the inauguration of a CNG Integrated Refuelling Unit in Karu, Abuja on Friday.
Private investors have committed approximately $2.6bn to develop CNG infrastructure across the country, marking a shift from the experimental phase to commercial scale, Ahmed explained. He noted that the 160 operational stations represent the 106th facility opened in less than two years, demonstrating market viability. Ahmed urged additional private investors to participate in the programme, emphasising that Nigeria's population of 220 million people and 12 million vehicles create substantial demand for cheaper transportation fuel alternatives.
The expansion of CNG infrastructure is part of broader government efforts to reduce transportation costs following the removal of fuel subsidies in 2023. According to Ahmed, the adoption of CNG-powered buses has already reduced transportation fares by between 30 and 40 per cent on certain routes in Abuja, Lagos and Kano, including the Kano-Katsina route. He highlighted that Nigeria took 60 years to establish 24,000 petrol stations, all privately owned, suggesting the current pace of CNG expansion represents accelerated infrastructure development.
The newly inaugurated facility in Abuja was established through a partnership between the State House, Pi-CNG and Electric Vehicles, and Rolling Energy. The State House converted an abandoned petrol dispensing station into a CNG refuelling and vehicle conversion centre, while Rolling Energy invested in rehabilitation and equipment installation without government expenditure. The Permanent Secretary of the State House, Temitope Fashedemi, said the project demonstrates how government institutions can support the CNG programme by providing existing infrastructure while encouraging private investment.
The regulatory framework for station development involves the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which oversees licensing approvals for the 170 facilities currently in development. Ahmed called for accelerated processing of these approvals to meet the government's expansion targets. The initiative reflects Nigeria's substantial natural gas reserves, which have historically remained underutilised, with significant volumes lost through gas flaring.
For savers and borrowers, the expansion of CNG infrastructure could reduce transportation costs and household expenses if adoption rates increase across major routes, while businesses operating transport fleets may benefit from lower fuel prices and improved access to refuelling facilities.