The federal government has unveiled plans to build 500 Compressed Natural Gas (CNG) refuelling stations across the country within the next three years as part of efforts to fast-track Nigeria’s transition to cleaner and more affordable energy sources.
The initiative follows the conclusion of negotiations between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and Chinese equipment manufacturer Endurance Group on the rollout of large scale CNG infrastructure, according to a statement on Sunday, November 16, by MDGIF executive director, Oluwole Adama.
Announcing the outcome of the talks, Adama said both parties agreed to set up a government backed Special Purpose Vehicle involving MDGIF, the Bank of Industry, Endurance Group, and Séquor Investment Partners to execute the project.
The new Special Purpose Vehicle (SPV), to be known as the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), will be responsible for deploying the 500 integrated CNG stations, developing LCNG supply systems, and providing CNG and LNG transportation trucks equipped with truck-mounted cascades to create a virtual gas pipeline network nationwide.
He explained that the project is expected to ease the long queues presently seen at the few available CNG stations by expanding access to refuelling points and improving delivery logistics to guarantee uninterrupted supply.
The initiative comes as the government intensifies its push for gas adoption as a cheaper alternative to petrol and diesel following the removal of fuel subsidies and the liberalisation of the downstream sector.
Officials maintain that wider CNG use is crucial for stabilising transportation costs, enhancing energy security, and reducing pressure on foreign exchange spent on fuel imports.
Nigeria, despite holding more than 200 trillion cubic feet of proven gas reserves, has struggled for years with inadequate midstream infrastructure, leaving many regions underserved.
The CNG expansion plan is one of the key components of the Presidential Compressed Natural Gas Initiative introduced in 2023 to reduce dependence on Premium Motor Spirit and Automotive Gas Oil.
Commenting on the development, the senior special adviser to the president on special duties and domestic affairs, Oluwatoyin Subair, said the CAM InfraCo project is aligned with president Bola Tinubu’s energy security and economic reform agenda, noting that it would deepen CNG utilisation nationwide while creating new jobs across the gas value chain.
The Chief Executive Officer of Endurance Group (CEO), Eric Lin, added that the SPV aims to establish a nationwide ecosystem for refuelling, maintenance, and logistics by leasing CNG equipment to certified operators and guaranteeing steady gas supply through a reliable virtual pipeline system.
According to Lin, gas will be distributed from strategically located mother stations to underserved northern corridors and high demand clusters in the South, leveraging existing and planned infrastructure for sustainable expansion.
When fully implemented, the initiative is expected to significantly increase access to gas-powered transportation, cut reliance on imported petroleum products, and strengthen Nigeria’s transition toward cleaner energy sources.
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