Government says over 100,000 vehicles have already been converted as investments in Nigeria’s alternative fuel sector cross $1bn….
The Federal Government has unveiled plans to establish 2,322 Compressed Natural Gas (CNG) stations across Nigeria by 2027 as part of an aggressive push to expand alternative fuel adoption, lower transportation costs, and strengthen the country’s gas mobility infrastructure.
The disclosure was made by the Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (PICNG), Ismaeel Ahmed, during the Nigerian Oil and Gas Midstream and Downstream Summit organised by the Nigerian Content Development and Monitoring Board in Lagos.
Ahmed, who was represented by an official of the agency, Olayinka Rufai, said Nigeria had recorded remarkable progress in CNG expansion within less than three years despite economic challenges.
According to him, commercial availability of CNG has expanded from just one state at the beginning of the initiative to 24 states across the country.
“Today, in less than three years, we now have 24 states active,” he said.
“I think we can safely say that it is probably one of the fastest transitions we have seen anywhere in the world, especially considering the conditions under which we are doing this.”
The government also disclosed that more than 100,000 vehicles have already been converted to run on CNG, with a large percentage belonging to commercial transport operators.
Ahmed explained that the initiative was deliberately designed to ease the impact of fuel subsidy removal on ordinary Nigerians by reducing transportation costs.
“Because of the palliative nature with which we started, the majority of those vehicles turned out to be commercial vehicles because we intended to make an impact that touched the common man,” he stated.
He further revealed that the CNG mobility programme has attracted over $1bn in direct investments into Nigeria’s growing alternative fuel sector.
On infrastructure development, Ahmed said Nigeria currently has 72 operational CNG refuelling stations, while an additional 175 stations are under construction nationwide.
He added that the country now has 28 active compression stations supporting virtual gas pipeline distribution, with another 65 currently in development.
“We expect the numbers to triple within the next 18 months, which will significantly increase supply capacity and drive greater demand,” he said.
According to the PICNG boss, the expansion has so far been driven largely by small and medium-scale Nigerian businesses, particularly in the vehicle conversion segment.
He disclosed that over 350 CNG conversion centres have already been established across the country.
“These are small Nigerian businesses driving this industry,” he stressed.
Beyond infrastructure, the government said manpower development remains a major focus of the initiative.
Ahmed disclosed that over 5,600 Nigerian technicians have already been trained and certified in CNG conversion technologies to support the growing number of converted vehicles nationwide.
He noted that the training programme became necessary to ensure mechanics across the country can properly maintain and repair CNG-powered vehicles.
“You can have hundreds of conversion centres, but what happens when vehicles break down on the road and mechanics don’t understand the technology?” he asked.
“We have placed strong emphasis on training and retraining technicians so they become familiar with different conversion technologies.”
The initiative has also expanded into local manufacturing and assembly.
Ahmed revealed that the government has deployed 4,318 CNG-powered tricycles nationwide, adding that 95 per cent of them were assembled locally in Nigeria.
He also highlighted increasing activity in local motorcycle and tricycle assembly, noting that Africa’s largest motorcycle assembly plant is located in Lagos.
On affordability, Ahmed maintained that CNG remains significantly cheaper than petrol, making it an attractive option for motorists and transport operators.
“The compelling argument is simple. CNG costs between N380 and N450 per standard cubic metre, which is equivalent to one litre of petrol currently selling between N1,300 and N1,350,” he said.
“You do the maths. Where would you rather be?”
He added that the government is also gradually scaling up electric vehicle deployment alongside the CNG initiative, with pilot electric vehicle projects and charging infrastructure expected to roll out nationwide.
Ahmed disclosed that by 2027, the initiative aims to achieve 2,322 CNG stations nationwide, 3,000 active conversion workshops, one million vehicle conversions, 75,000 direct jobs, and 300,000 indirect jobs across the country.
The Federal Government sees the transition to cleaner fuels as a critical part of its broader strategy to reduce energy costs, create jobs, strengthen local manufacturing, and diversify Nigeria’s transportation and energy sectors.
