Nigeria’s ambitious shift towards cleaner, more affordable energy is picking up serious pace. The Nigerian Government has announced that Compressed Natural Gas (CNG) infrastructure is now up and running in 20 states, with plans to bring an additional 10 states online within the next six to nine months. This comes as an active gas supply contract, managed by the Gas Aggregation Company Nigeria (GACN), has impressively reached 20 million standard cubic feet per day (scf/d).
This optimistic update comes from the Presidential CNG Initiative (PCNGI), a key driver in accelerating the nation’s energy transition, particularly within the transportation sector. The initiative has already attracted a substantial $500 million in private investment, signalling strong confidence in its potential.
Speaking at the official launch of the Mobility CNG Supply Framework in Abuja, Michael Oluwagbemi, Managing Director of PCNGI, confirmed the rapid expansion. He acknowledged the growing demand and the visible queues at stations, emphasising the urgent need for increased supply. Oluwagbemi described the new framework as the genesis of a nationwide energy transition, one that masterfully combines private sector participation, regulatory alignment, and commercial innovation.
The groundwork for this pivotal framework was laid back in March 2024, when the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) approved a concessionary pricing structure for automotive CNG. Oluwagbemi explained that this model is crucial for preventing arbitrage and building a robust market, ensuring that gas meant for the transport sector isn’t diverted to more lucrative uses.
The progress is evident: the number of CNG fueling stations has surged from just 20 to over 65, with two new stations recently launched in Ibadan through a partnership with Bovas. Even more impressive, Oluwagbemi revealed that another 27 to 28 stations are expected to be operational in the next four to five weeks, and over 175 stations are currently under construction. Adding to this significant expansion, the Dangote Group has committed to developing an additional 100 stations, which will dramatically broaden national coverage.
The adoption rate is equally impressive. Oluwagbemi noted that the country’s CNG-powered vehicle count has jumped from around 4,000 in 2023 (mostly in Edo state) to over 50,000, excluding trucks. The long queues now seen at Abuja stations for hours on end clearly illustrate the pace of adoption and soaring public interest. The initiative aims to convert between 125,000 and 200,000 additional vehicles by the end of the year, bringing the total to approximately 300,000. The ambitious long-term goal is to reach 1 million CNG-powered vehicles by 2027.
At the same event, Chijioke Uzoho, Managing Director of the Gas Aggregation Company Nigeria (GACN), underscored the broader gas commercialisation and supply strategy that underpins the entire initiative. He detailed that three major gas supply contracts have already been successfully executed and commercialised. Notably, the timelines for these contracts have been drastically compressed from an average of three years to a mere one to six months, reflecting a far more agile and responsive approach to Nigeria’s energy planning.
