Nigeria has mobilized nearly $1 billion in private investments over 18 months to expand its compressed natural gas (CNG) infrastructure, marking a major leap in the country’s transition to cleaner energy. Federal authorities announced the milestone during the launch of a new CNG facility in Abuja, underscoring rapid growth in domestic adoption of gas-powered transportation.
Michael Oluwagbemi, Programme Director of the Presidential CNG Initiative (PCNGI), revealed that the number of CNG refueling and conversion centers—termed “daughter stations”—has surged from just seven to 350 since early 2023. Vehicle conversions have also skyrocketed, with over 100,000 vehicles now running on CNG, up from 4,000 a year ago. Private companies, including industry giants like Bua Group and Nigerian Bottling Company, have injected ₦720 billion (approximately $580 million) into building CNG-powered truck fleets and supporting infrastructure.
Oluwagbemi credited targeted incentives, such as discounted conversion kits for transport operators, for accelerating adoption. “We offered kits at up to 90% off to unions, and the response has been overwhelming,” he said. The initiative has expanded CNG access from five states to 20, with plans to cover 30 states and the capital territory by year-end. Regulatory clarity, he added, remains critical to sustaining investor confidence in what he called Nigeria’s “fastest-growing sector.”
Private sector collaboration has been pivotal. The newly inaugurated NASENI-Portland facility—a joint venture between a government innovation agency and gas firm Portland Gas—symbolizes this partnership. Portland CEO Folajimi Mohammed framed the project as a step toward cleaner cities and cost-effective transport, noting CNG’s potential to cut fueling expenses for businesses and households. “This is about a sustainable future, not just infrastructure,” he said, adding that public-private alliances have enabled Nigeria to “lead Africa’s clean energy shift.”
With 315 conversion centers now operational nationwide and $980 million tracked in sectoral investments, officials aim to position CNG as a mainstream alternative to petrol—a move aligned with global decarbonization goals. While challenges like regulatory harmonization persist, the progress signals Nigeria’s ambition to leverage its natural gas reserves for economic and environmental gains.
