The Federal Government has unveiled an ambitious plan to establish 500 Compressed Natural Gas (CNG) refuelling stations nationwide within the next three years, a move aimed at accelerating Nigeria’s shift toward cleaner, cheaper fuel alternatives and easing reliance on petrol.
The initiative follows the conclusion of negotiations between the Midstream and Downstream Gas Infrastructure Fund and Chinese manufacturer Endurance Group on the deployment of large-scale CNG infrastructure. Executive Director of MDGIF, Oluwole Adama, confirmed the development in a statement on Sunday.
According to him, both parties agreed to create a government-backed Special Purpose Vehicle—promoted by the MDGIF, the Bank of Industry, Endurance Group, and Séquor Investment Partners—tasked with driving the rollout.
The SPV, named the Compressed Natural Gas Auto Mobility Infrastructure Company, will oversee the establishment of integrated CNG stations, the development of LCNG supply infrastructure, and the deployment of CNG and LNG transportation trucks to form a virtual pipeline across all states.
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Adama said the collaboration reflects a shared commitment to closing infrastructure gaps in Nigeria’s CNG value chain, ensuring wider access to refuelling points and stabilising supply.
He added that the expanded network is expected to eliminate the persistent queues seen at existing CNG stations by improving logistics and distribution.
The project aligns with the administration’s broader pivot toward gas as a more cost-effective and sustainable alternative to petrol and diesel, especially since the removal of fuel subsidies and the liberalisation of the downstream sector.
Officials have repeatedly emphasised that mass adoption of auto-CNG is crucial for lowering transportation costs, strengthening energy security, and reducing pressure on foreign exchange used for fuel imports.
Despite holding more than 200 trillion cubic feet of proven gas reserves, Nigeria has long faced challenges in building adequate midstream infrastructure. The CNG rollout is a central component of the Presidential Compressed Natural Gas Initiative introduced in 2023 to reduce dependence on premium motor spirit and diesel.
Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, said the CAM InfraCo project supports President Bola Tinubu’s energy security agenda.
He noted that the initiative will expand the use of auto-CNG nationwide, support ongoing economic reforms, and generate jobs across the domestic gas sector.
Eric Lin, Chief Executive Officer of Endurance Group, added that the SPV aims to build a nationwide ecosystem for refuelling, maintenance, and logistics by leasing CNG equipment to certified operators and ensuring consistent gas supply through a reliable virtual pipeline.
He said the distribution model will move gas from strategic mother stations into underserved northern regions and high-demand southern corridors, relying on existing and planned infrastructure to support efficient and affordable expansion.
Once completed, the initiative is expected to significantly expand access to gas-powered transportation, reduce reliance on imported fuels, and strengthen Nigeria’s ongoing transition toward cleaner energy sources.
