Nigeria Plans 500 New CNG Stations in Major Push for Cleaner Fuel

Nigeria has unveiled plans to establish 500 additional Compressed Natural Gas (CNG) refuelling stations across the country over the next three years, as part of a drive to promote cleaner energy alternatives and reduce reliance on petrol and diesel.

The initiative was announced in a recent report by the Midstream and Downstream Gas Infrastructure Fund (MDGIF), which is partnering with Chinese manufacturer Endurance Group to execute the project.

Oluwole Adama, Executive Director of MDGIF, explained that the plan involves the creation of a government-backed special purpose vehicle in collaboration with MDGIF, the Bank of Industry (BOI), Endurance Group, and Séquor Investment Partners.

He said, “The collaboration underscores the parties’ commitment to accelerating Nigeria’s transition to cleaner fuels by addressing infrastructure gaps across the country’s CNG value chain. Under this agreement, we will set up the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), which will deploy 500 integrated CNG refuelling stations, develop LCNG gas supply infrastructure, and provide CNG and LNG transportation trucks with truck-mounted cascades, forming a virtual pipeline across all states nationwide.”

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The project aligns with President Bola Tinubu’s vision for energy security, according to Oluwatoyin Subair, Senior Special Adviser to the President on Special Duties and Domestic Affairs.

Subair noted that the initiative aims to deepen the adoption of auto-CNG, reduce dependence on petrol (PMS) and diesel (AGO), and create new jobs within Nigeria’s domestic gas sector.

Endurance Group CEO, Eric Lin, emphasized that the special purpose vehicle will establish a nationwide ecosystem for CNG refuelling, maintenance, and logistics by leasing CNG equipment to certified operators while ensuring a reliable gas supply through a world-class virtual pipeline network.

The project is expected to significantly boost Nigeria’s clean energy infrastructure while providing more affordable fuel options for transport operators nationwide.