- Nigeria’s CNG sector attracted over $980 million in private investments in 18 months, driving vehicle conversions from 4,000 to nearly 100,000.
- Government incentives and private investments are cutting transport costs by up to 90% and targeting nationwide coverage by 2025.
Nigeria’s Compressed Natural Gas (CNG) sector has drawn over $980 million in private investments in just 18 months, with vehicle conversions jumping from 4,000 to nearly 100,000, the Chief Executive Officer of the Presidential Compressed Natural Gas Initiative (PCNGI), Michael Oluwagbemi, said on Wednesday, August 13.
Speaking at the launch of the Portland Gas Ltd/NASENI CNG Daughter Station, Auto Conversion and Training Centre along the Kubwa Expressway in Abuja, Oluwagbemi described the programme as the country’s fastest-growing energy sector, driven by government incentives and private sector participation.
“In 18 months, we have tracked over $980 million worth of investments in the CNG sector,” he said. “It continues to grow in leaps and bounds.”
President Bola Tinubu launched the initiative to cushion the impact of fuel subsidy removal and make transport more affordable and eco-friendly. Oluwagbemi said motorists can save up to 90% on fuel costs by switching to CNG.
From just five states with CNG facilities a year ago, Nigeria has 20 states with more than 315 conversion centres. Oluwagbemi projected that at least 30 states and the Federal Capital Territory would have CNG infrastructure before the end of 2025.
He cited significant investments, including N720 billion from BUA and Nigerian Bottling Company for CNG trucks and 100 fuelling stations. He urged authorities to prevent CNG-allocated vehicles from being diverted to gas-fired power plants.
In addition, Portland Gas CEO Folajimi Mohammed said the new facility functions as a full gas hub, featuring an auto-conversion centre, training centre, refill station, and cooking gas sales. He noted that PCNGI had subsidised conversion costs for members of the Nigerian Association of Road Transport Owners, National Union of Road Transport Workers, and Bolt drivers.
NASENI Director-General Khalil Halilu said the station’s location along the Kubwa Expressway would be a strategic link between Nigeria’s northern and southern regions. He also added that queues at CNG stations should disappear within two years as capacity expands.
Meanwhile, the House of Representatives pledged to enact legislation to prevent the diversion of auto CNG to other uses. Speaker Khalil Halilu, represented by Alexander Mascut, said lawmakers would develop laws to protect autogas users.