The Presidential Compressed Natural Gas Initiative (P-CNGI) has announced that Nigeria’s CNG sector has attracted over $500 million in investments and created more than 10,000 direct jobs.
According to Mr Michael Oluwagbemi, Programme Director and Chief Executive Officer of the P-CNGI, the sector has recorded significant progress, including the establishment of 255 new vehicle conversion centres none of which existed as of 202, and 53 daughter stations now operational.
Speaking on Monday, Oluwagbemi noted that Nigeria is steadily expanding its CNG infrastructure and investment base, though he acknowledged that such engineering achievements take time.
He recalled that the P-CNGI began implementing its mandate in May 2024, following President Bola Tinubu’s directive, with a focus on promoting the adoption of CNG and electric vehicles to support sustainable transport nationwide.
The programme, he said, also aims to drive investment into alternative energy for transport and to coordinate regulations for the rapidly emerging sector.
“Initially, the President’s vision was met with scepticism,” he explained. “At the time, barely any CNG vehicles were on the roads, and there was no demand at the 11 CNG stations established under the 2017 NNPC pilot. Our early efforts therefore focused on raising awareness between May and October 2024.”
Oluwagbemi said public perception has shifted dramatically. “Even our staunchest critics are now seeing the benefits,” he remarked, citing a dramatic increase in CNG vehicle count from 4,000 to over 50,000, with projections heading toward 100,000.
He attributed the surge to government-backed incentives and increased awareness of the economic advantages of switching to CNG.
Also Read: Lagos Launches CNG Conversion Training for 500 South-West Students
Just last week, two new daughter stations were commissioned in Abuja, established by AY Shafa and Femadec. AY Shafa plans to launch nine more stations, while Femadec is developing 21 additional sites over the next year. Notably, Femadec is also leading a CNG ecosystem project across 20 Nigerian universities.
“In Yola, Greenville is stepping up investment this week, as part of its wider rollout plan covering 51 sites across the North, South East, and remote areas,” Oluwagbemi added.
Overall, over 175 new CNG stations are being rolled out nationwide by various partners.
He disclosed that P-CNGI is supporting partners to establish 24 sites over the next six to nine months, with one already operational in Ilorin. Additional sites in Port Harcourt, Ado Ekiti, Lokoja, Abuja, Aba and Enugu are expected to become operational within the next two to four months.
These efforts form part of the scale-up of the refuelling on-lending initiative, launched in Ilorin in 2024.
Other developments include:
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NNPC Ltd expanding its existing 12 stations by eight, with 40 more in Phase Two of its rollout plan nearing completion.
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Bovas preparing to launch two new sites in Ibadan as part of its eight-station expansion of modern CNG infrastructure.
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NIPCO aiming to complete eight new stations within six months, in addition to its 23 existing outlets nationwide.
Oluwagbemi also mentioned that the Midstream and Downstream Gas Infrastructure Fund (MDGIF) has awarded equity investments to 10 new companies to support the development of gas projects. This comes on top of the N123 billion investment by the Fund in 2024, with four out of six initial investments channelled directly into the CNG sub-sector.
Despite the rapid growth, Oluwagbemi criticised certain media reports that questioned infrastructure capacity, arguing that such concerns overlook the sector’s infancy barely seven months old.
“At P-CNGI, we remain focused on delivering the benefits promised by President Bola Tinubu across the entire CNG value chain,” he affirmed.
