The Federal Government has unveiled an ambitious plan to construct 500 Compressed Natural Gas refuelling stations across Nigeria within the next three years, offering motorists a significantly cheaper alternative to petrol at just N380 per litre.
Major Infrastructure Expansion for Cheaper Fuel
This groundbreaking initiative represents one of the most substantial energy infrastructure projects in recent Nigerian history. The move aims to dramatically expand access to affordable, cleaner fuel for millions of Nigerians currently grappling with financial pressures from high petrol costs.
The project follows successful negotiations between the Midstream and Downstream Gas Infrastructure Fund and Chinese equipment manufacturer Endurance Group. According to MDGIF Executive Director Oluwole Adam, the partnership will establish a government-backed Special Purpose Vehicle to oversee the massive rollout.
How the CNG Initiative Will Work
The newly formed entity, known as Compressed Natural Gas Auto Mobility Infrastructure Company, will develop 500 integrated refuelling stations nationwide. The comprehensive plan includes building LCNG supply facilities and deploying CNG and LNG transportation trucks with mounted cascades to create what officials describe as a virtual pipeline reaching all 36 states.
Eric Lin, CEO of Endurance Group, explained that the SPV will focus on establishing a nationwide network for CNG refuelling, maintenance, and logistics. The company plans to lease CNG equipment to certified station operators and ensure stable gas supply through the virtual pipeline system.
Aligning with National Energy Security Goals
Oluwatoyin Subair, Senior Special Adviser to the President on Special Duties and Domestic Affairs, emphasized that this project aligns perfectly with President Bola Tinubu's energy security agenda. He noted that the initiative supports ongoing economic reforms while creating numerous job opportunities across the gas value chain.
The CNG expansion program forms a crucial component of the Presidential CNG Initiative launched in 2023. This comes as part of the administration's broader strategy to promote gas as a more affordable alternative to petrol following the removal of fuel subsidy and deregulation of the downstream sector.
Currently, the Nigerian National Petroleum Company Limited sells CNG at N380 per litre, with NIPCO and other filling stations charging similar rates. This represents substantial savings compared to current petrol prices, which have reached as high as N965 per litre at some NNPC retail outlets in Gombe State.
The distribution model will strategically move gas from mother stations to underserved northern routes and high-demand southern corridors, utilizing existing hubs and new infrastructure to drive sustainable expansion across the country.
