CNG Stations Hit 106 as Private Investment Reaches $2.6 Billion

The Federal Government says 106 Compressed Natural Gas refuelling stations are now operational across Nigeria, with $2.6 billion in private-sector investment coming into the project. The disclosure came on Friday at the official inauguration of a CNG Integrated Refuelling Unit station in Karu, Abuja.

Karu station becomes 106th

Ismaeel Ahmed, Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG), said the Karu launch marked the 106th station in less than two years. The project was launched through a partnership involving the State House, Pi-CNG and Electric Vehicles, and Rolling Energy.

Ahmed said President Bola Tinubu had ordered another round of about 500 infrastructure refuelling units through the Midstream and Downstream Gas Infrastructure Fund (MDGIF). He said “$2.6 billion in private investment” had so far come into the project. “It’s a scale thing. Nigeria is 220 million people strong, 12 million vehicles. We are moving at a scale that we need to move. The work is in progress,” he said.

He said about 170 more stations were at different stages of development or awaiting licences from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). He added that CNG had cut transportation costs by about 30% to 40% on routes where CNG-powered buses operate. The goal is to extend development to every nook and cranny, especially areas with commercial vehicles and high-traffic corridors.

State House backs expansion

Temitope Fashedemi, Permanent Secretary of the State House, said the new facility represented the government’s commitment to promoting CNG as an alternative means of transportation. He said the facility was established by converting an abandoned petrol dispensing station belonging to the State House into a CNG refuelling and vehicle conversion centre. The State House provided the existing facility, while Rolling Energy invested in its rehabilitation and the installation of necessary equipment without any government expenditure on the project.

Mubarak Danbatta, Chief Executive Officer of Rolling Energy, said the facility demonstrated the benefits that can be derived when government institutions and private investors collaborate in expanding alternative fuel infrastructure.

Gas infrastructure gap

In August 2026, MDGIF Executive Director Oluwole Adama said the Fund was supporting about 200 gas infrastructure projects nationwide to unlock Nigeria’s 200 trillion cubic feet of gas reserves. He spoke at the West African Refined Fuels Market (WARFM) Conference in Abuja and said the development was part of the Fund’s strategy to bridge a reported $20 billion annual deficit in Nigeria’s gas infrastructure. NMDPRA Executive Director of Finance and Accounts Abiodun Adeniji expressed optimism that the planned African Energy Bank would provide financing at rates closer to those available in foreign jurisdictions.

In early 2025, NEITI Executive Secretary and Chief Executive Officer Dr Ogbonnaya Orji said Nigeria needed $20 billion annually for 10 years in gas infrastructure investment. He spoke while presenting the latest NEITI oil and gas industry report to the Senate Committee on Public Accounts. Nigeria has the largest gas reserves in Africa and is among the top 10 countries globally, but a significant portion remains untapped due to inadequate investment in infrastructure.

In March 2025, the Federal Government launched a N2.5 billion credit scheme to encourage vehicle conversions to CNG and the manufacturing of conversion kits. The Presidential Compressed Natural Gas Initiative (PCNGi) said the scheme aimed to ease energy and transportation costs.

What it means

For Nigerian businesses and consumers, the expansion could support lower transport costs where CNG buses and conversions reach. It also points to private capital taking a bigger role in gas infrastructure, though the financing gap remains large at $20 billion annually, according to NEITI.