Nigeria has recorded approximately 160 operational Compressed Natural Gas (CNG) refuelling stations across the country, as investment in alternative fuel infrastructure continues to grow.

The development was disclosed by Ismaeel Ahmed, Executive Chairman of the Presidential Compressed Natural Gas Initiative (PCNGI), who said the country had attracted approximately $2.6 billion in private-sector investment into the CNG market in less than two years.

According to Ahmed, another 170 CNG facilities are currently at different stages of development, regulatory approval and licensing, indicating growing interest in the country’s alternative energy sector.

He made the disclosure on Friday during the commissioning of an integrated CNG refuelling station along New Karu Road, Saint George Akume Way, in Karu, Abuja.

The growing number of facilities represents an important development in Nigeria’s efforts to expand access to alternative vehicle fuel following the removal of the petrol subsidy.

Government Targets Further Expansion of CNG Infrastructure

Ahmed explained that the federal government was working to increase the availability of CNG refuelling facilities across the country.

He noted that some of the proposed stations were still undergoing development or waiting for necessary approvals from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

He also disclosed that President Bola Tinubu had directed another round of infrastructure deployment, involving 1,500 units in February and an additional 500 units in August.

The facilities are expected to begin coming into operation between the end of 2026 and early 2027.

According to the PCNGI chairman, Nigeria needs to accelerate its investment in alternative fuel infrastructure because of its large population and vehicle numbers.

He estimated that the country has more than 220 million people and approximately 12 million vehicles, making the expansion of refuelling facilities important for the future of its transport and energy sectors.

CNG Adoption Could Reduce Transportation Costs

One of the major expectations surrounding the expansion of CNG infrastructure is its potential to reduce the cost of transportation.

Ahmed said the use of CNG-powered buses had helped reduce transport fares by between 30 and 40 per cent on some routes where the vehicles were already operating.

He specifically mentioned routes in Abuja, Lagos and Kano, including the Kano-Katsina route.

According to him, passengers who previously paid between N3,000 and N4,000 on certain routes were paying approximately N1,500 when travelling in CNG-powered buses.

However, these reductions apply to selected routes and should not be interpreted as a nationwide reduction in transport fares.

Ahmed also acknowledged that the number of CNG-powered vehicles currently available was still insufficient to meet demand.

This means that expanding refuelling infrastructure alone may not be enough. More buses, vehicle conversion facilities and reliable fuel distribution will also be needed to make the programme more accessible.

New CNG Facility Opens in Karu, Abuja

The newly commissioned facility in Karu is an integrated refuelling unit designed to combine compression and fuel dispensing equipment within one complex.

The Chief Executive Officer of Rolling Energy Limited, Mubarak Danbatta, said the station could serve approximately 150 vehicles daily, depending on the size of their gas cylinders and operating pressure.

The facility also includes a vehicle conversion centre designed to handle approximately 12 vehicles per day.

The project was developed through a partnership involving the State House, the Presidential CNG Initiative and Rolling Energy Limited.

According to Temitope Fashedemi, Permanent Secretary of the State House, the government made an existing abandoned fuel depot available for redevelopment, while the private-sector partner financed its rehabilitation and modernisation.

The arrangement demonstrates how public and private-sector partnerships can support the development of energy infrastructure.

What the Development Means for Nigeria

Nigeria has substantial natural gas resources, and the government has been encouraging greater domestic use of gas as part of efforts to diversify the country’s energy supply.

Expanding CNG infrastructure could create opportunities for investors, transport operators, engineers, technicians and businesses involved in vehicle conversion and gas distribution.

It could also provide motorists with another fuel option, particularly where CNG is available at competitive prices.

However, the success of the programme will depend on the availability of refuelling stations, affordable vehicle conversion, safety standards and consistent gas supply.

For many Nigerians, the most important question will be whether the expansion eventually translates into lower transportation and operating costs.

With approximately 160 stations already operational and another 170 facilities at various stages of development, Nigeria’s CNG market is entering an important phase of expansion.

The coming months will show how quickly the planned infrastructure becomes available and how much benefit ordinary Nigerians and businesses can gain from the investment.