FG secures $2 billion for CNG push as fuel prices bite
By Aboki Forex —
The Federal Government says it has secured more than $2 billion in private-sector investment to develop Compressed Natural Gas (CNG) infrastructure and expand Nigeria's gas value chain. The disclosure came from Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in a statement on Tuesday issued by his spokesman, Louis Ibah.
More than 120,000 vehicles have been converted to CNG since the Presidential Initiative on CNG launched in 2023. The government says the programme is aimed at giving Nigerians a cheaper alternative to petrol and diesel.
Conversion centres and refuelling stations
According to Ekpo, the initiative now supports over 400 certified vehicle conversion centres and more than 90 CNG refuelling stations across the country. The private investment, he said, has accelerated the expansion of refuelling infrastructure, conversion facilities and technical skills needed for a nationwide CNG ecosystem.
The programme has trained over 7,700 automotive technicians and created more than 10,000 direct and indirect jobs. The government has also deployed 655 CNG-powered buses and 5,123 CNG tricycles to expand access to cheaper transport. Thousands of privately converted vehicles are also operating across commercial and public transportation networks, the minister added.
Ekpo described the growing adoption of CNG as proof that the fuel is becoming a viable option for motorists and transport operators, not just a future alternative. He said commercial operators, private vehicle owners and fleet managers are already reporting fuel-cost savings and improved profitability.
Target of 1,000 CNG stations
The government now plans a much larger CNG network. Ekpo commended President Bola Tinubu's directive for an additional 500 CNG refuelling stations, which would raise the planned national network to 1,000 stations.
The expansion is expected to make CNG more accessible and encourage more Nigerians to convert their vehicles. The ministry is working with the Presidential Initiative on CNG, the Midstream and Downstream Gas Infrastructure Fund, state governments, transport unions and investors to develop dedicated CNG corridors and extend infrastructure to underserved communities.
Ekpo said the broader goal is to ensure that lower fuel costs translate into cheaper transportation and logistics. Savings from CNG should reduce commuting costs, improve business profitability, ease pressure on household budgets and boost economic productivity.
The minister also urged state governments yet to embrace the initiative to partner with investors and stakeholders. He assured Nigerians that the Federal Government would continue supporting private investment, expanding CNG infrastructure and deepening domestic gas utilisation.
What it means for commuters
President Tinubu has directed federal and state governments to collaborate on reducing public transport fares. The President said Nigerians should start feeling the impact of cheaper transportation from October 1, 2026, as governments pass on savings from CNG and electric vehicles to commuters. For now, the $2 billion investment and growing CNG network signal a gradual shift that could ease pressure on household budgets if the stations and conversion centres reach enough Nigerians.