The Federal Government has concluded plans to establish 500 Compressed Natural Gas refueling stations across the country within the next three years as part of a wider push to accelerate Nigeria’s transition to cheaper, cleaner fuels and reduce dependence on petrol.
The development follows the completion of discussions between the Midstream and Downstream Gas Infrastructure Fund and Chinese equipment manufacturer Endurance Group, according to a statement released by the MDGIF Executive Director, Oluwole Adama. He said the agreement will drive the rollout of large-scale CNG infrastructure nationwide.
Under the arrangement, a government-backed Special Purpose Vehicle will be created by the MDGIF, the Bank of Industry, Endurance Group, and Séquor Investment Partners. The SPV, to be known as the Compressed Natural Gas Auto Mobility Infrastructure Company, will be responsible for deploying the 500 integrated CNG stations, developing LCNG gas supply facilities, and supplying CNG and LNG transportation trucks equipped with truck-mounted cascades that will form a virtual pipeline across all states.
Adama explained that the partnership is designed to bridge the country’s long-standing infrastructure gaps across the CNG value chain and expand access to refuelling points. He added that the new stations will help eliminate the long queues currently seen at existing CNG outlets by improving supply networks and strengthening logistics.
The initiative comes as the government intensifies its push for auto-CNG adoption to stabilise transport costs and reduce reliance on imported fuel, following the removal of petrol subsidy and the liberalisation of the downstream oil market. Officials have repeatedly argued that shifting vehicles to gas-powered systems will boost energy security, ease pressure on foreign exchange and support job creation across the gas sector.
Nigeria holds more than 200 trillion cubic feet of proven gas reserves, yet inadequate midstream infrastructure has prevented the country from fully leveraging this resource. The CNG rollout represents a core component of the Presidential Compressed Natural Gas Initiative introduced in 2023 to reduce dependence on Premium Motor Spirit and Automotive Gas Oil.
Commenting on the development, the Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, said the CAM InfraCo project aligns with President Bola Tinubu’s energy security agenda. He stated that it would deepen the use of auto-CNG across the country, support ongoing economic reforms and open new employment opportunities across the domestic gas industry.
The Chief Executive Officer of Endurance Group, Eric Lin, said the SPV is designed to build a nationwide ecosystem for refuelling, maintenance, and logistics. He explained that the company will lease CNG equipment to certified operators and ensure an uninterrupted gas supply through a reliable virtual pipeline network. According to Lin, the distribution model will move gas from strategically located mother stations into underserved northern routes and high-demand southern regions to enable consistent expansion.
Once completed, the initiative is expected to significantly improve access to gas-powered transportation, reduce the country’s reliance on petrol and diesel, and strengthen Nigeria’s shift toward cleaner, more affordable energy sources.
For MSMEs, especially transport operators, logistics providers and manufacturers, the expansion of CNG infrastructure could ease fuel costs, open new business opportunities in conversion and maintenance services, and support long-term energy efficiency across sectors.
