Business Briefings
CNG Stations Rollout Lags 2025 Target Despite $2bn Investment
Despite attracting over $2 billion in private sector investments in the past two years, the Federal Government has fallen short of its 2025 nationwide Compressed Natural Gas (CNG) infrastructure targets, highlighting gaps in implementation.
The Presidential CNG Initiative (PiCNG), launched in 2023 after petrol subsidy removal, aimed to expand gas-powered mobility across Nigeria. However, months after announcing a target of 500 conversion centres and 150 retail CNG outlets by the end of 2025, progress remains unclear. Attention is increasingly shifting from investment figures to measurable infrastructure outcomes.
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At a January 2025 event inaugurating five mini-liquefied natural gas plants in Kogi State, PiCNG Programme Director, Engr. Michael Oluwagbemi, reiterated plans to reach 500 conversion centres and 150 retail outlets by year-end.
According to the initiative’s website, over 300 conversion centres and 40 refuelling stations have been built since 2023, but no specific 2025 breakdown is available. Requests for detailed performance data were redirected across multiple agencies.
Lara Obileye, PiCNG Sales, Business Development and Strategy Manager, referred inquiries to the Federal Ministry of Finance and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Dr. Ogho Okiti, Special Adviser to the Minister of Finance, added:
“I think those who received the money should be able to tell you what they received.”
A source at the Ministry of Finance described this as a possible deflection of responsibility:
“Mentioning the Ministry of Finance is a deflection.”
Attempts to reach NMDPRA spokesperson George Eno-Ita were unsuccessful.
As of January 2025, Nigeria had about 50 CNG refuelling stations and 193 conversion centres, revealing a clear gap between targets and actual infrastructure coverage.
PiCNG was launched following the May 2023 petrol subsidy removal, which led to steep pump prices and increased transport costs. The programme aimed to reduce fuel costs and accelerate energy transition by increasing domestic gas usage.
Private sector commitments have already reached $2 billion, with projections to hit $5 billion by 2027. The initiative is expected to generate thousands of jobs in vehicle conversion, cylinder production, station construction, and logistics.
Government contributions include N100 billion in 2023, N130 billion in 2024, and N225 billion in 2025 to support station construction and conversion incentives.
Despite these efforts, most operational stations remain concentrated along pilot corridors and urban centres, limiting nationwide coverage.
Industry stakeholders cite delays in equipment importation, limited local manufacturing of cylinders and kits, regulatory approval timelines, logistics challenges, uneven state-level coordination, and restricted financing for small centres as factors slowing deployment.
Audu Maiturare of the National Union of Road Transport Workers (NURTW) in Nyanya said:
“Our members like the idea of cheaper fuel, but drivers cannot risk being stranded. If stations exist only in select corridors, nationwide adoption will be slow. Infrastructure must come first before enforcement or pressure to convert.”
Abuja-based transporter Ben Ngilari added:
“Some vehicles have been converted, but route planning has become complicated. Until refuelling points are reliably available across states, large-scale fleet adoption will remain limited.”
