The Federal Government has secured more than $2 billion in investments for the development of Compressed Natural Gas (CNG) infrastructure and related value chains, a move aimed at reducing transportation costs and promoting cleaner energy across Nigeria. Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed this in a statement issued on Tuesday by his spokesperson, Louis Ibah, highlighting the government's determination to expand CNG adoption as a cheaper, cleaner, and more sustainable alternative to conventional fuels.
Investment Drives CNG Infrastructure Growth Since 2023
Ekpo said the investments have contributed significantly to the rapid growth of CNG infrastructure since the launch of the Presidential Initiative on Compressed Natural Gas (Pi-CNG) in 2023. According to the minister, the investment has supported the expansion of refuelling stations, vehicle conversion centres, technical manpower, and other critical components required to build a nationwide CNG ecosystem.
He revealed that more than 120,000 vehicles have been converted to CNG through over 400 certified conversion centres, while more than 90 refuelling stations have been established across the country. The initiative has also trained over 7,700 automotive technicians and generated more than 10,000 direct and indirect jobs.
CNG Adoption Translates to Fuel Savings and Lower Fares
The programme has facilitated the procurement and deployment of 655 CNG-powered buses and 5,123 CNG tricycles, alongside thousands of privately converted vehicles currently operating within Nigeria's commercial and public transport networks. Ekpo said the figures show that CNG has moved beyond being a proposed alternative fuel and is increasingly becoming a practical option for Nigerians.
Ekpo linked the CNG programme to the Federal Government's response to rising transportation and living costs following the removal of the petrol subsidy. He noted that increasing adoption among commercial transport operators, private motorists, and fleet managers has resulted in significant fuel savings and improved profitability. Commuters using CNG-powered buses are also beginning to benefit through lower transport fares.
“The objective is not simply to increase the number of CNG vehicles and refuelling stations, but to translate fuel savings into lower transportation and logistics costs, ease the cost of living and improve economic productivity,” he said. Ekpo explained that reduced vehicle operating costs could have wider economic benefits for commuters, businesses, farmers, traders, and other productive sectors.
Government Plans 500 Additional CNG Stations
The minister praised President Bola Ahmed Tinubu for approving the establishment of an additional 500 CNG refuelling stations. He said the planned facilities would increase the national network to 1,000 stations, significantly improving access to CNG and encouraging more Nigerians to switch from conventional transport fuels.
Ekpo said the continued expansion of infrastructure would be crucial to sustaining the momentum of CNG adoption and ensuring that the benefits of cheaper fuel translate into reduced transportation costs across the economy. The government has also opened a portal for Nigerians to access CNG-powered tricycles, popularly known as Keke, as part of broader efforts to promote cleaner energy adoption.
