Nigeria’s push for cleaner and cheaper transport fuel is paying off, with the Federal Government confirming it attracted over $791.49 million in private sector investments for Compressed Natural Gas (CNG) infrastructure and services between May and June 2025 alone.
The massive capital inflow, driven by the Presidential Compressed Natural Gas Initiative (P-CNGi), is part of the broader goal to transition away from petrol dependency and reduce the nation’s transport costs through natural gas alternatives. The initiative is banking on Nigeria’s vast gas reserves to power the shift toward more sustainable mobility.
In the past year, the initiative has mobilised a total of $980 million in investment, distributed more than 100,000 CNG kits, and converted over 1,440 vehicles in 20 states. Additionally, it has procured 807 gas-powered buses, over 5,000 tricycles, and 40 electric buses.
A breakdown of procurement activities shows that, of the 23,845 CNG kits ordered in 2023, more than 16,000 have been deployed. In 2024, an additional 27,100 kits and 53,000 cylinders are already positioned in supplier warehouses for delivery, aiming to meet this year’s 125,000 vehicle conversion target.
The federal government is also ramping up infrastructure: 65 mother refuelling stations are operational, 175 daughter stations are under construction, and over 300 conversion centres are being established across the country.
By 2027, the plan is to convert at least one million vehicles, train 25,000 autogas technicians, and establish 1,000 conversion workshops capable of handling 250,000 conversions annually. The government estimates the initiative could save Nigerians over N500 billion in fuel costs and cut carbon emissions by up to 57 percent.
Despite challenges around gas availability and infrastructure gaps, the CNG initiative is seeing strong buy-in from investors and state governments. Authorities are also putting safety measures in place, including strict quality controls and monitoring systems, to ensure smooth implementation.
With China, Iran, and India leading the global charge in gas-powered vehicles, Nigeria hopes its growing CNG ecosystem will reshape mass transit and help reduce the economic strain of fuel deregulation.
