Government Moves to Expand CNG Infrastructure

The Federal Government has unveiled plans to roll out 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria within the next three years, as part of efforts to accelerate the country’s transition to cheaper and cleaner energy sources.

The initiative follows the conclusion of negotiations between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and Chinese equipment manufacturer Endurance Group, MDGIF Executive Director Oluwole Adama said in a statement on Sunday.

According to Adama, the agreement includes the creation of a government-backed Special Purpose Vehicle (SPV) — the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo) — jointly promoted by MDGIF, the Bank of Industry, Endurance Group, and Séquor Investment Partners.

The SPV will oversee the deployment of 500 integrated CNG stations, the development of LCNG supply infrastructure, and the provision of CNG and LNG transportation trucks fitted with truck-mounted cascades to form a nationwide virtual pipeline.

Adama said the collaboration aims to close long-standing infrastructure gaps across Nigeria’s gas value chain and expand access to CNG refuelling points. He added that the expanded network is expected to ease the long queues currently seen at existing CNG stations by improving logistics and guaranteeing steady gas distribution.

The rollout aligns with the government’s intensified push for auto-CNG adoption, following the removal of petrol subsidy and the liberalisation of the downstream market. Officials argue that widespread use of gas-powered vehicles will help stabilise transportation costs, reduce foreign exchange pressure from fuel imports, and strengthen energy security.

Nigeria has more than 200 trillion cubic feet of proven gas reserves but has struggled for decades with inadequate midstream infrastructure, leaving many regions underserved. The CNG expansion is a key component of the Presidential CNG Initiative, launched in 2023 to cut dependence on petrol (PMS) and diesel (AGO).

Commenting on the initiative, the Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, said CAM InfraCo directly supports President Bola Tinubu’s energy security reforms and will create new jobs across the domestic gas market.

Endurance Group CEO Eric Lin noted that the partnership is designed to establish a nationwide ecosystem for refuelling, maintenance, and logistics. He said the SPV will lease CNG equipment to certified operators and ensure constant gas supply through a virtual pipeline connecting mother stations to underserved northern routes and high-demand southern clusters.

When completed, the project is expected to significantly deepen access to gas-powered transportation, reduce the country’s reliance on petrol and diesel, and accelerate Nigeria’s shift toward cleaner, more affordable energy sources.