FG to Establish 500 CNG Stations to Reduce Petrol Use in Nigeria
The Federal Government plans to set up 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria within the next three years. This move is aimed at promoting cleaner and cheaper fuels, reducing the country’s heavy reliance on petrol, and easing long queues at existing fuel stations.
The announcement followed discussions between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and Chinese equipment manufacturer Endurance Group. Oluwole Adama, Executive Director of MDGIF, said the talks led to a plan for a government-backed Special Purpose Vehicle (SPV) to drive the project nationwide.
The SPV, called Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), will build the 500 integrated CNG stations. It will also develop LCNG gas supply infrastructure and provide CNG and LNG transport trucks with truck-mounted cascades, creating a virtual pipeline system to ensure gas supply reaches all states.
Adama explained that the project will close the infrastructure gap in Nigeria’s CNG sector and improve logistics to provide a steady fuel supply. He noted that expanding the number of refuelling stations will help eliminate the long queues currently experienced at existing CNG facilities.
The initiative supports the government’s ongoing transition to gas as a cheaper alternative to petrol and diesel, especially after the removal of fuel subsidies and liberalisation of the downstream oil sector. Officials say using auto-CNG will help stabilise transport costs, boost energy security, and reduce foreign exchange spent on fuel imports.
Nigeria has over 200 trillion cubic feet of proven gas reserves, but the country has struggled to build sufficient midstream infrastructure. The CNG rollout is part of the Presidential Compressed Natural Gas Initiative, launched in 2023 to reduce dependence on Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO).
Oluwatoyin Subair, Senior Special Adviser to the President on Special Duties, said the CAM InfraCo project aligns with President Bola Tinubu’s energy security agenda. He explained that it will increase nationwide auto-CNG adoption, support economic reforms, and create jobs along the domestic gas value chain.
Eric Lin, CEO of Endurance Group, added that the SPV will establish a nationwide CNG refuelling, maintenance, and logistics network. By leasing CNG equipment to certified operators and using strategically located hubs, the project will ensure a reliable supply across northern and southern regions. When completed, the initiative is expected to make gas-powered transportation widely available, reduce petrol imports, and strengthen Nigeria’s shift to cleaner energy sources.
