Nigeria is set for a major shift in its energy landscape, as the Federal Government finalises plans to establish 500 Compressed Natural Gas (CNG) refuelling stations nationwide within the next three years—a move projected to ease pressure on petrol demand and fast-track the country’s migration to cleaner, cheaper fuels.
The ambitious rollout follows the conclusion of negotiations between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and Chinese equipment giant, Endurance Group, according to MDGIF Executive Director, Oluwole Adama, in a statement issued on Sunday.
Adama said the agreement paves the way for a government-backed Special Purpose Vehicle (SPV)—to be known as the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo)—with equity contributions from the MDGIF, Bank of Industry, Endurance Group, and Séquor Investment Partners.
The SPV will be responsible for deploying the 500 integrated CNG stations, developing LCNG supply infrastructure, and providing CNG and LNG transport trucks equipped with truck-mounted cascades to create a virtual gas pipeline network serving all 36 states.
According to Adama, the collaboration marks a major step in closing the significant infrastructure gaps holding back Nigeria’s CNG sector. He noted that the expansion will help eliminate the long queues currently stretching across the few existing CNG outlets, as more stations and improved logistics guarantee steady supply.
The initiative comes as the Tinubu administration doubles down on its gas adoption drive—positioning CNG as the most realistic alternative to petrol following the removal of fuel subsidy and the opening of the downstream market.
Government officials argue that boosting auto-CNG usage will help stabilise transportation costs, reduce reliance on imported fuels, and improve energy security. Despite having over 200 trillion cubic feet of proven gas reserves, Nigeria has struggled for years to build sufficient midstream infrastructure to satisfy domestic demand.
The new deployment is one of the flagship projects under the Presidential Compressed Natural Gas Initiative (PCNGI) launched in 2023 to reduce dependence on Premium Motor Spirit and Automotive Gas Oil.
Speaking on the development, the Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, described CAM InfraCo as “a direct expression of President Bola Tinubu’s energy security agenda,” adding that the project will boost nationwide auto-CNG adoption, support ongoing economic reforms, and unlock fresh job opportunities across the gas value chain.
Endurance Group CEO, Eric Lin, said the company is committed to building a commercially sustainable, resilient CNG network by leasing equipment to certified operators and ensuring constant gas supply through a robust virtual pipeline.
He added that the distribution model will channel gas from strategically located mother stations into underserved northern routes and high-demand southern corridors, leveraging existing hubs to drive affordable expansion.
Once completed, the 500-station project is expected to significantly deepen access to gas-powered mobility, cut fuel import bills, and accelerate Nigeria’s transition to a cleaner, more cost-efficient energy future.
