By Emmanuella Opara | November 7th 2026
KEY POINTS
- Nigeria currently has about 160 operational CNG refuelling stations, with another 170 undergoing development or awaiting regulatory approval.
- The Federal Government plans to introduce 500 additional infrastructure units to expand access to compressed natural gas.
- Private investors have committed approximately $2.6bn to CNG infrastructure development.
- CNG-powered buses have reduced transport fares by between 30 and 40 per cent on some routes in Abuja, Lagos and Kano.
MAIN STORY
The Federal Government has disclosed that Nigeria has about 160 operational Compressed Natural Gas refuelling stations, as it plans to expand the country’s infrastructure with an additional 500 facilities to accelerate the adoption of alternative fuels.
The expansion is part of efforts to increase access to cheaper transportation fuel and reduce the financial burden of rising transport costs following the removal of the petrol subsidy in 2023.
The Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, Ismaeel Ahmed, disclosed this on Friday during the commissioning of a CNG Integrated Refuelling Unit in Karu, Abuja.
Ahmed said another 170 facilities were at different stages of development or awaiting regulatory approvals from the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
He explained that the programme had moved beyond its initial implementation phase, with private investors committing about $2.6bn to the development of CNG infrastructure across the country.
According to him, President Bola Tinubu has directed another round of infrastructure development, with approximately 500 additional units expected to strengthen the country’s refuelling network.
Ahmed said the expansion was necessary to serve Nigeria’s large vehicle population, estimated at 12 million, and improve access to alternative fuel across major commercial transportation routes.
He also called on more private investors and entrepreneurs to participate in the programme, noting that the development of refuelling facilities would be essential to expanding CNG adoption nationwide.
The Pi-CNG chairman said the introduction of CNG-powered buses had already reduced transportation fares by between 30 and 40 per cent on some routes where the vehicles were operating.
He identified routes in Abuja, Lagos and Kano, including the Kano-Katsina corridor, as areas where passengers were benefiting from lower fares.
Ahmed explained that passengers who previously paid between N3,000 and N4,000 for journeys along the Kano-Katsina route could now travel for about N1,500 using CNG-powered buses.
He said the government intended to extend the benefits to more commercial vehicle operators and high-traffic transportation corridors across the country.
The commissioning also highlighted private-sector participation in the development of CNG infrastructure.
The Permanent Secretary, State House, Temitope Peter Fashedemi, said the newly commissioned facility was established through a partnership involving the State House, Pi-CNG and Electric Vehicles, and Rolling Energy.
He explained that the project involved converting an abandoned petrol dispensing station belonging to the State House into a CNG refuelling and vehicle conversion centre.
According to Fashedemi, the government provided the existing facility, while Rolling Energy financed its rehabilitation and installation of the necessary equipment without requiring government expenditure on the project.
THE ISSUES
Nigeria’s transition towards CNG-powered transportation is gaining attention as households and businesses continue to contend with elevated transport costs following the removal of petrol subsidies.
Although the country possesses substantial natural gas reserves, the development of infrastructure required to make the resource accessible to consumers remains a major consideration.
The expansion of refuelling facilities is therefore central to the government’s adoption strategy. Without sufficient stations, vehicle owners and commercial transport operators may find it difficult to switch from petrol to CNG.
Private investment is also becoming increasingly important to the programme, particularly as the government seeks to expand infrastructure across a country with a large vehicle population.
The reported reduction in transport fares on selected routes provides an indication of the potential economic benefits, although wider adoption will depend on the availability of refuelling facilities and CNG-powered vehicles.
WHAT’S BEING SAID
“This is almost our 106th station across the country in less than two years. This is not beginning any longer. The market has been proven,” Ismaeel Ahmed, Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, said.
“The investors are putting in $2.6bn worth of private investment. Our President has ordered for another round of about 500 infrastructure units to come in through the MDGIF,” he added.
WHAT’S NEXT
The Federal Government is expected to continue expanding CNG infrastructure, with additional facilities planned to come on stream between 2026 and early 2027.
The progress of the 170 facilities currently under development or awaiting regulatory approval will also be important to increasing the number of operational refuelling stations.
BOTTOM LINE
Nigeria’s CNG expansion is moving into a larger infrastructure phase, supported by private investment and government-backed projects. However, the programme’s ability to deliver sustained reductions in transportation costs will depend on how quickly refuelling facilities become available across major commercial routes.
