Nigeria’s CNG Revolution: NNPC to Set Up 40 New Stations as Part of Major Green Energy Push

Nigeria is ramping up its transition to Compressed Natural Gas (CNG) as the Nigerian National Petroleum Company Limited (NNPC) has secured equipment to establish 40 additional CNG stations across the country. This comes as part of a broader federal initiative aimed at rolling out 100 CNG refuellingstations over the next six months, marking a significant step in the nation’s shift away from petrol dependence.

The Programme Director and Chief Executive Officer of the Presidential Compressed Natural Gas Initiative (PCNGI), Oluwagbemi Michael, disclosed these plans during an event in Ogun State. He revealed that 12 new CNG centres have already been installed in the past year—six in Abuja and six in Lagos—as the government pushes to make the alternative fuel more accessible.

Oluwagbemi acknowledged the frustration expressed by many Nigerians over the scarcity of CNG stations, which has hindered the wider adoption of this cleaner and cheaper fuel source. He outlined the government’s infrastructure development programme, highlighting its collaboration with the Midstream and Downstream Gas Infrastructure Fund to accelerate distribution.

“In the last two weeks, around N122bn was released to six private firms investing in the CNG distribution value chain,” he said. “We are already taking major steps to ensure that CNG distribution infrastructure reaches every corner of the country.”

The director explained that although infrastructure development requires time for planning, design, and procurement, the NNPC has already acquired additional equipment for 40 sites, with plans to operationalise these stations in the coming months. Private firms are also contributing, with companies like Bovasand NIPCO expanding their CNG networks, and investments from Matrix and MRS further bolstering the sector.

“When this programme began a year ago, there were just 13 to 20 refuelling stations nationwide. Today, we have 50, and I expect that number to double in the next six months,” Oluwagbemi added, reflecting the government’s sustained engagement with investors.

The government is also encouraging CNG adoption by distributing one million conversion kits to commercial drivers and providing credit schemes for private vehicle owners to switch from petrol to CNG. Oluwagbemi emphasised the significant savings for drivers who convert, predicting that fuel costs could drop from N50,000 per week to as low as N10,000 with CNG.

“That N40,000 saving can be used towards financing the conversion, making it a sustainable option for individuals over the long term,” he explained.

In response to concerns raised by Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), that just 50 CNG stations currently serve Nigeria’s population of 200 million, Oluwagbemi assured that expansion efforts are well underway. He also highlighted the safety and cost advantages of CNG, positioning it as a key part of Nigeria’s energy future.

The government’s long-term goal is to integrate CNG as a central component of the country’s energy mix, offering a cleaner, more affordable fuel option to millions of Nigerians. As this infrastructure takes shape, the hope is that CNG will become a cornerstone of Nigeria’s shift towards a greener, more sustainable energy model.