The Federal Government has defended its aggressive push to shift Nigeria’s transport sector towards Compressed Natural Gas (CNG), revealing that the initiative has attracted over $500 million in investments and led to the conversion of more than 50,000 vehicles within its first year.
In a statement released Monday, Programme Director and CEO of the Presidential Compressed Natural Gas Initiative (PCNGI), Michael Oluwagbemi, dismissed media reports suggesting slow progress in CNG infrastructure deployment, calling such claims “alarmist” and “divorced from reality.”
“What has happened in the last seven months is nothing short of remarkable,” Oluwagbemi said. “From near-zero adoption, we now have over 255 new vehicle conversion centres and 53 operational CNG dispensing stations across Nigeria.”
The PCNGI was officially launched in May 2024 as part of President Bola Tinubu’s economic reform programme, aimed at reducing transportation costs, promoting energy security, and transitioning away from petroleum dependency.
According to Oluwagbemi, prior to the launch, Nigeria had only 11 CNG stations, remnants of a 2017 pilot project by the Nigerian National Petroleum Company Limited (NNPCL). Public awareness was low, and skepticism was widespread.
“Hardly anyone was using CNG, and the few existing stations had virtually no demand,” he said. “We had to start with an aggressive public awareness campaign from May to October 2024, battling misinformation and rebuilding confidence.”
CNG Rollout Gathers Pace Across the Country
Since then, the programme has gained momentum. The number of CNG-converted vehicles has jumped from 4,000 to over 50,000, with projections to reach 100,000 in the coming months, Oluwagbemi said. He noted that the rise in CNG adoption is already resulting in longer queues at fueling stations, a sign, he argued, of growing consumer trust and demand.
Private sector players have played a key role. AY Shafa and Femadec launched two new daughter stations in Abuja last week and plan to build 30 more within a year. Femadec is also setting up CNG infrastructure in 20 Nigerian universities.
Meanwhile, Greenville is developing 51 liquefied compressed natural gas stations across the North and South-East, including remote areas like Yola. NNPCL is expanding its footprint from 12 to 20 CNG stations, with an additional 40 in the pipeline. Bovas and NIPCO are also scaling up efforts with multiple new sites planned in cities like Ibadan, Port Harcourt, Lokoja, and Aba.
The Midstream and Downstream Gas Infrastructure Fund has also stepped in, awarding equity to 10 new project developers, three of which will focus specifically on new CNG stations. The fund had earlier injected N123 billion into the sector in 2024.
From Energy Reform to Energy Revolution
Despite the rapid developments, Oluwagbemi urged patience, warning that transitioning away from petrol and diesel will take time.
“It took us 70 years to get hooked on petrol and diesel. We won’t fix it in seven months,” he said. “But we are making progress. Engineering solutions take time, and this transition is one of the most ambitious in our country’s history.”
He also defended the practicality and affordability of CNG, saying the fuel can reduce transportation costs by as much as 90% for some vehicle owners. “We doubt that anyone running a bi-fuel vehicle would want to switch back to petrol only,” he added.
Oluwagbemi concluded by reaffirming the Federal Government’s commitment to building out the entire CNG value chain, promising continued coordination across regulatory bodies and private sector partners.
“This programme is not just working it’s thriving. Nigerians are embracing CNG, and we are just getting started,” he said.
