Nigeria Hits 106 CNG Stations as Private Investors Commit $2.6bn

Nigeria now has 106 operational compressed natural gas stations, with another 170 at different stages of development or awaiting regulatory approvals. The push is part of federal efforts to cut transportation costs and reduce dependence on petrol.

The Executive Chairman of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), Ismaeel Ahmed, disclosed the figures during the commissioning of a CNG Integrated Refuelling Unit Station by Pi-CNG & EV and Rolling Energy in Karu. He said the additional stations are either under construction or waiting for licences from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Private capital and station buildout

Ahmed said private investors have committed about $2.6 billion to the CNG sector, noting that most of the stations are privately owned. The federal government is supporting the expansion with policies meant to make it easier for investors to set up refuelling facilities.

He said Nigeria's progress in CNG infrastructure is significant when compared with conventional petrol stations. It took Nigeria about 60 years to build 24,000 petrol stations, while the CNG sector is expanding at a much faster pace.

“We are moving at a scale that is very impressive. The work is in progress and a lot of entrepreneurs are seeing the need for this and they are coming in and we're calling them to come in and invest more,” Ahmed said.

Fares and access

Ahmed said the introduction of CNG buses has helped reduce transport fares along some routes. He added that more buses are needed to expand the benefits and drive fares down further.

The Permanent Secretary of the State House, Temitope Fashedemi, said CNG adoption would help Nigerians cope with rising petrol prices. He said expanding the number of refuelling stations would improve access to the alternative fuel and reduce pressure on existing facilities.

Fashedemi expressed optimism that more investors would establish stations as the Ajaokuta-Kaduna-Kano gas pipeline project progresses.

“The stations will reduce the pressure in other places that we're going to, and they can come here and refuel at any time, and even convert,” he said.

The Chairman and Founder of Rolling Energy, Mubarak Umar Danbatta, said the newly commissioned facility would support the federal government's efforts to strengthen energy security.

Naira warning

Separately, Taiwo Oyedele, Nigeria's minister of finance and coordinating minister of the economy, warned that restoring petrol subsidies could push the naira as low as N4,000 to the dollar. He spoke at a press briefing after the International Monetary Fund and World Bank annual meetings in Bangkok, Thailand.

Oyedele said news of a possible subsidy restoration could prompt foreign investors to pull funds out of Nigeria while pushing local business owners and wealthy Nigerians to convert savings into dollars as a hedge against risk.

For consumers and businesses, the CNG expansion could ease transport and logistics costs if station and bus numbers keep rising. The naira warning shows how quickly policy reversals can affect investor confidence.