The Federal Government has unveiled an ambitious plan to establish 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria within the next three years, a major push to expand clean-energy infrastructure and reduce dependence on petrol.
This follows the conclusion of high-level discussions between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and leading Chinese equipment manufacturer, Endurance Group, the Executive Director of MDGIF, Oluwole Adama, announced in a statement on Sunday.
According to Adama, the agreement will lead to the creation of a government-backed Special Purpose Vehicle (SPV) involving the MDGIF, Bank of Industry, Endurance Group, and Séquor Investment Partners. The new entity, to be known as the Compressed Natural Gas Auto Mobility Infrastructure Company, will spearhead the rollout of the stations and other key infrastructure.
The SPV will be responsible for deploying 500 integrated CNG refuelling stations, developing LCNG supply systems, and providing CNG and LNG transportation trucks equipped with truck-mounted cascades forming a nationwide virtual gas pipeline.
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Adama said the partnership marks a major step toward closing critical infrastructure gaps that have slowed Nigeria’s transition to cleaner, cheaper fuels. He added that the project is expected to ease the heavy traffic and long queues currently seen at the limited number of existing CNG stations.
The Federal Government has increasingly promoted auto-CNG as a viable alternative to petrol and diesel, especially after subsidy removal, arguing that widespread adoption will stabilise transport costs, strengthen energy security, and reduce foreign exchange spent on fuel imports.
The new infrastructure plan is expected to accelerate access to affordable gas fuel, helping Nigerians transition to cleaner mobility solutions over the coming years.
