The Federal Government has finalised plans to roll out 500 Compressed Natural Gas refuelling stations nationwide over the next three years as part of efforts to accelerate Nigeria’s shift toward cheaper and cleaner alternative fuels while reducing reliance on petrol.
This move follows the completion of negotiations between the Midstream and Downstream Gas Infrastructure Fund and Chinese manufacturer Endurance Group, according to a statement by MDGIF Executive Director, Oluwole Adama. He noted that the agreement will fast-track the establishment of large-scale CNG infrastructure across the country.
Under the plan, a government-backed Special Purpose Vehicle will be set up by the MDGIF, the Bank of Industry, Endurance Group, and Séquor Investment Partners. The SPV, named the Compressed Natural Gas Auto Mobility Infrastructure Company, will oversee the deployment of the 500 integrated CNG stations, the development of LCNG supply facilities, and the provision of CNG and LNG transport trucks equipped with truck-mounted cascades to serve as a virtual pipeline nationwide.
Adama said the collaboration aims to close Nigeria’s long-standing infrastructure gaps in the CNG value chain and widen access to refuelling locations. He added that the new facilities will help eliminate the long queues at existing CNG stations by strengthening supply systems and improving logistics networks.
The initiative aligns with the government’s broader drive to increase auto-CNG adoption in order to stabilise transportation costs and reduce dependence on imported fuel, following the removal of petrol subsidies and the deregulation of the downstream sector. Authorities have repeatedly emphasised that transitioning vehicles to gas-powered systems will enhance energy security, reduce forex pressure, and stimulate job creation throughout the gas industry.
Although Nigeria has over 200 trillion cubic feet of proven gas reserves, the country’s limited midstream infrastructure has hindered full utilisation of this resource. The CNG expansion is a critical part of the Presidential Compressed Natural Gas Initiative introduced in 2023 to reduce reliance on Premium Motor Spirit and Automotive Gas Oil.
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Commenting on the progress, the 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 it will deepen nationwide adoption of auto-CNG, bolster ongoing economic reforms, and unlock new employment opportunities within the domestic gas value chain.
Endurance Group CEO, Eric Lin, explained that the SPV is structured to create a national ecosystem for refuelling, maintenance, and logistics. He stated that the company will lease CNG equipment to certified operators and maintain uninterrupted supply through an efficient virtual pipeline system. The distribution network will transport gas from strategically located mother stations into underserved northern routes and high-demand southern corridors to sustain growth.
When fully implemented, the project is expected to greatly expand access to gas-powered mobility, curb national dependence on petrol and diesel, and reinforce Nigeria’s transition to cleaner and more affordable energy alternatives.
For MSMEs — particularly transport operators, logistics providers, and manufacturers — the growth of CNG infrastructure could reduce fuel expenses, create new opportunities in vehicle conversion and maintenance services, and promote long-term energy efficiency across various industries.
