FG to Launch 500 CNG Refuelling Stations Nationwide in 3-Year Push for Cleaner Fuel

The Federal Government plans to establish 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria over the next three years, aiming to promote cleaner, more affordable fuels and reduce pressure on petrol consumption.

The announcement follows the conclusion of discussions between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and Chinese equipment manufacturer Endurance Group regarding large-scale CNG infrastructure deployment, the MDGIF Executive Director, Oluwole Adama, confirmed in a statement on Sunday.

According to the statement, the collaboration will result in a government-backed Special Purpose Vehicle (SPV), supported by MDGIF, Bank of Industry, Endurance Group, and Séquor Investment Partners. Named the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), the SPV will deploy 500 integrated CNG stations, develop LCNG gas supply infrastructure, and provide CNG and LNG transport trucks with truck-mounted cascades to form a nationwide virtual pipeline.

Adama noted that the project would alleviate long queues at existing CNG stations, expand access to refuelling points, and enhance logistics for uninterrupted supply.

The initiative aligns with the current administration’s drive toward gas as a cost-effective alternative to petrol and diesel, especially after the removal of fuel subsidies and liberalisation of the downstream sector. Government officials say auto-CNG adoption is key to stabilising transportation costs, improving energy security, and reducing foreign exchange spent on fuel imports.

With over 200 trillion cubic feet of proven gas reserves, Nigeria has faced challenges in developing adequate midstream infrastructure, leaving much of the country underserved. The CNG rollout is a core component of the Presidential Compressed Natural Gas Initiative launched in 2023 to cut reliance on Premium Motor Spirit and Automotive Gas Oil.

Oluwatoyin Subair, Senior Special Adviser to the President on Special Duties and Domestic Affairs, said the CAM InfraCo project directly supports President Bola Tinubu’s energy security agenda, promotes economic reforms, and will generate jobs along the domestic gas value chain.

Endurance Group CEO, Eric Lin, added that the SPV aims to create a nationwide refuelling, maintenance, and logistics ecosystem, leasing CNG equipment to certified operators and ensuring reliable gas supply through the virtual pipeline. The distribution strategy will deliver gas to underserved northern corridors and high-demand southern clusters, using existing hubs and planned infrastructure for sustainable expansion.

Once completed, the initiative is expected to significantly expand gas-powered transportation, reduce dependence on imported fuels, and advance Nigeria’s transition to cleaner energy.