The Federal Government has announced plans to establish 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria over the next three years, aiming to promote cleaner, more affordable fuels and reduce reliance on petrol.
The announcement followed discussions between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and Chinese equipment manufacturer Endurance Group, according to MDGIF Executive Director, Oluwole Adama.
Adama explained that a government-backed Special Purpose Vehicle (SPV)—the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo)—will be created with support from the Bank of Industry, Endurance Group, and Séquor Investment Partners to drive the project.
The SPV will oversee the deployment of the 500 CNG stations, develop LCNG gas supply infrastructure, and provide CNG and LNG transport trucks with truck-mounted cascades, effectively creating a “virtual gas pipeline” linking all states.
“The initiative will address infrastructure gaps, expand access to refuelling points, and improve logistics to ensure uninterrupted gas supply, eliminating long queues at existing stations,” Adama said.
The move aligns with the government’s push for gas adoption following the removal of fuel subsidies and liberalisation of the downstream petroleum sector. Officials highlight that wider auto-CNG adoption could stabilize transport costs, enhance energy security, and reduce foreign exchange spent on fuel imports.
Nigeria, which holds over 200 trillion cubic feet of proven gas reserves, has long faced challenges in building midstream infrastructure, leaving much of the country underserved. The new rollout is part of the Presidential Compressed Natural Gas Initiative, launched in 2023 to reduce dependence on petrol and diesel.
Oluwatoyin Subair, Senior Special Adviser to the President on Special Duties, noted that the CAM InfraCo project supports President Bola Tinubu’s energy security agenda, encourages national auto-CNG adoption, and creates jobs along the domestic gas value chain.
Eric Lin, CEO of Endurance Group, added that the SPV will establish a nationwide refuelling, maintenance, and logistics network, leasing CNG equipment to certified operators and ensuring reliable gas supply through the virtual pipeline.
The project is expected to significantly expand gas-powered transport, cut reliance on imported fuels, and accelerate Nigeria’s transition to cleaner energy sources.
