NIGERIA’S CNG INITIATIVE ATTRACTS $500 MILLION IN INVESTMENTS –MEMAN
GREATRIBUNTVNEWS–THEPresidential Compressed Natural Gas (CNG) Initiative has recorded significant strides in expanding CNG infrastructure and adoption across Nigeria. With over $500 million in investments attracted, including $160 million in the first four months of 2025 alone, the initiative is on track to meet its objectives.
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Key Highlights:
– Investments: Over $500 million in investments attracted, with $160 million coming in the first four months of 2025.
– Conversion Centers: More than 250 conversion centers are now operational, with plans to establish 1,000 workshops by 2027.
– Vehicle Conversions:Over 40,000 vehicles have been converted to CNG nationwide, with demand outstripping infrastructure.
– Job Creation:The initiative has created over 9,000 direct jobs and 75,000 indirect jobs ¹ ².
Future Plans:
– Expansion:CNG will be accessible in 17 states by June 2025, with plans to reach 30 states by the end of the year.
– Diesel Conversion Programme:A programme to reduce operational costs for the haulage industry by up to 80% is underway.
– Partnerships:The initiative is collaborating with stakeholders, including MEMAN, IPMAN, and universities, to expand CNG adoption
Speaking on Thursday during Major Energy Marketers Association of Nigeria (MEMAN) Competency Centre Gas Series with theme ‘Natural Gas Pricing and Investment in CNG Dialogue’ the Programme Director of the Presidential Compressed Natural Gas Initiative (PCNGI), Engr. Michael Oluwagbemi said that the initiative has attracted over $500 million in investments to date, including $160 million in the first four months of 2025 alone. The investments span conversion centers, mother and daughter stations, virtual pipelines, and data stations.
The Programme Director of the PCNG Initiative, who leads the initiative, shared insights into the journey so far, highlighting the significant growth in infrastructure, investment, and vehicle conversions nationwide.
“When we started on October 1st, 2023, we had just 23 CNG stations—mostly for power generation. Fast forward to today, we have over 250 conversion centers, more than 40,000 converted vehicles, and a strong CNG presence in 19 states across six regions,” the Director said.
“These numbers are more than statistics—they show how our demand-stimulation strategy is working. The private sector is responding positively, and we’ve avoided the pitfall of government dominance in pricing and market control,” he stated.
To support the rollout, the federal government acquired 100,000 CNG conversion kits under the Conversion Incentive Program (CIP), with 13,940 kits delivered by April 2025. A total of 11,843 vehicle conversions were completed as of the same period, representing an 18% nationwide increase.
“Our approach has always been to stimulate demand while letting the private sector respond to supply. That balance has been key to maintaining investor interest and sustainable market development,” the Director emphasized.
Significant progress has also been made in training technicians. Over 500 conversion technicians have been trained, with more still in training, ensuring local capacity development and job creation in the clean energy transition.
On infrastructure, 175 new daughter stations are in various stages of development, 65 mother stations are under construction, and five mini-LNG facilities are being developed in Ajaokuta. However, officials acknowledged that challenges remain.
“We have over 20,000 refueling stations in Nigeria today, and yet less than 60 of them carry CNG. So despite our achievements, this is just the beginning. We still have a long way to go,” the Director admitted.
Monthly tracking data also showed a 9% increase in buses deployed under the mass transit program (191 buses), a 39% increase in tricycles (63 units), and a modest rise in operational stations—from 29 in March to 40 in April. However, the number had dropped earlier due to the expiration of temporary licenses.
Despite these fluctuations, optimism remains high within the initiative’s leadership. “Our dashboard shows continuous improvement. The sector has remained attractive to investors. Most of the new conversion centers are built by SMEs, and we’re seeing mother stations and trucks coming online steadily,” he said.
The Programme Director stressed that the CNG Initiative represents a deliberate effort to avoid the mistakes of the fuel subsidy era by ensuring a market-led, demand-driven approach.
“What we’re building here is a long-term clean energy infrastructure backed by policy consistency and market stability. The private sector is not just a participant—they’re leading this revolution,” he concluded.
As Nigeria continues to grapple with fuel costs and seeks cleaner alternatives, the Presidential CNG Initiative’s progress may represent a turning point in the nation’s transportation and energy sectors.
Meanwhile the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said that the Federal Government has reiterated its commitment to accelerating the use of natural gas as a cleaner and more affordable alternative to petrol and diesel, through a raft of policy reforms and funding initiatives aimed at deepening investment across the gas value chain.
An official of NMDPRA at the webinar Engr. Adedayo Oyinlola reiterated that the government has implemented several initiatives to boost domestic gas utilization. “We have a very robust initiative under the Presidential Initiative on Compressed Natural Gas (PICNG), which is targeted at enabling and incentivizing the conversion to CNG as a viable and affordable alternative to PMS and diesel,” Oyinlola said.
To improve transparency and efficiency in gas transactions, the Gas Network Code has been developed, establishing open access rules for connecting gas suppliers and off-takers. “These rules are aimed at encouraging accountability and transparency within the market,” he said..
In compliance with the Petroleum Industry Act (PIA), the government has introduced a domestic gas supply obligation for upstream operators to meet the needs of strategic sectors: commercial, industrial, and power generation. To further support this, a special fund has been set aside to de-risk gas infrastructure development, seen as a major barrier to market expansion.
“We know the dearth of gas infrastructure has stifled growth. The PIA provides funding to bridge this gap and we’ve already seen significant activities around domestic gas projects,” Oyinlola noted.
Also highlighted were initiatives such as the Gas Flare Commercialization Programme and the Decade of Gas initiative, which together aim to reduce gas flaring, grow investment in gas infrastructure, and fully unlock Nigeria’s vast gas resources. “Our goal remains to convert over one million vehicles to gas, and we are operationalizing the PIA to achieve this,” he affirmed.
