The Federal Government has announced plans to establish 500 Compressed Natural Gas (CNG) refuelling stations nationwide within the next three years, marking one of Nigeria’s most ambitious steps toward cleaner and more affordable energy sources.
The initiative follows the conclusion of discussions between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and Chinese equipment manufacturer, Endurance Group, according to a statement released on Sunday by MDGIF Executive Director, Oluwole Adama.
Adama said the talks resulted in a strategic agreement to form a government-backed Special Purpose Vehicle (SPV). The entity—promoted by the MDGIF, the Bank of Industry, Endurance Group, and Séquor Investment Partners—will drive the rollout of the CNG network.
To be known as the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), the SPV will deploy the 500 integrated CNG refuelling stations, develop LCNG supply infrastructure, and provide CNG and LNG transportation trucks equipped with truck-mounted cascades to create a virtual gas pipeline across all states.
According to Adama, the collaboration reflects a shared commitment to closing infrastructure gaps across Nigeria’s CNG value chain while supporting the national transition to cleaner fuels. He added that the project will help eliminate the long queues currently seen at existing CNG stations by expanding access and improving supply logistics.
The initiative comes as the Federal Government intensifies efforts to promote gas as a cheaper alternative to petrol and diesel, particularly after the removal of fuel subsidy and liberalisation of the downstream market. Officials maintain that widespread CNG adoption is vital for stabilising transport costs, enhancing energy security, and reducing foreign exchange pressure from fuel imports.
Despite holding more than 200 trillion cubic feet of proven gas reserves, Nigeria has long faced challenges with inadequate midstream infrastructure, leaving much of the country underserved.
The establishment of the refuelling stations is a key component of the Presidential Compressed Natural Gas Initiative (PCNGI) launched in 2023 to reduce dependence on Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO).
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 noted that the rollout would deepen auto-CNG usage nationwide, support ongoing economic reforms, and generate employment opportunities within the gas value chain.
Chief Executive Officer of Endurance Group, Eric Lin, explained that the SPV aims to build a nationwide refuelling, maintenance, and logistics ecosystem by leasing CNG equipment to certified operators while ensuring uninterrupted supply through a reliable virtual pipeline network.
Lin said the distribution model would transport gas from strategically positioned mother stations into underserved northern regions and high-demand southern hubs, leveraging existing and planned infrastructure for sustained expansion.
Upon completion, the initiative is expected to significantly strengthen Nigeria’s gas-powered transportation system, reduce reliance on imported fuels, and boost the country’s transition to cleaner energy.
