FG to Take Delivery of 500 CNG Stations by October as Price Stays at N380

The Federal Government expects its first batch of 500 Compressed Natural Gas (CNG) refuelling stations before the end of October, according to Ismael Ahmed, Executive Chairman of the Presidential Compressed Natural Gas Initiative (PCNGI). The first batch has already been ordered, and a second order for another 500 units will follow, taking total procurement to 1,000 stations.

CNG currently sells at N380 per standard cubic metre (SCM) for cars and passenger buses, and N450 per SCM for heavy-duty vehicles and lorries.

New order builds on earlier rollout

The latest order sits on top of 500 stations previously commissioned through the Midstream and Downstream Gas Infrastructure Fund. It also follows a directive from President Bola Tinubu for an additional 500 CNG refuelling points to be rolled out nationwide.

Ahmed warned that arrival does not mean immediate use. Each station requires construction, transportation and connection before it can begin operations. The government is now profiling locations across the country to find where CNG demand is strongest and where infrastructure is most needed.

He said deployment will be driven by economics, not politics.

"It is not a political decision; it is an economic decision. So you can't just say, 'Go and put it in this village when there are no cars there.' So you have to check the traffic, the cars; these are things to be taken into consideration," Ahmed said.

Cities under consideration

Cities being assessed for deployment include Lagos, Kano, Abuja, Port Harcourt, Zamfara, Borno, Enugu, Anambra and Lafia.

Abuja currently holds the highest concentration of CNG stations in the country, with 26 operational outlets. The Nigerian National Petroleum Company Limited runs about four of them, while Nipco operates roughly three.

Land remains the biggest obstacle to further expansion in the Federal Capital Territory.

"The problem with Abuja is the land that will accommodate the station. So many people are interested in opening gas stations, but getting the land is a problem," Ahmed said.

Licensing widens

Nigeria has licensed 81 companies to retail CNG, up from roughly four previously, as the government pushes to broaden access to the fuel alternative. Investment is also flowing into filling stations, mobile refuelling units and gas production facilities.

The plan points to cheaper running costs for commercial transport operators if the stations reach the cities where vehicle volumes are highest. Abuja, Lagos and Kano are the early focus. For now, the pace of land acquisition and construction will determine how quickly the new capacity moves from order to pump.