FG says 160 CNG stations operational, plans 500 more

The Federal Government of Nigeria has revealed that there are currently around 160 Compressed Natural Gas (CNG) refuelling stations operating across the country. Additionally, 170 more facilities are either under development or awaiting regulatory approvals, as part of initiatives to promote the use of alternative fuels and decrease transportation expenses.

This information was disclosed by Ismaeel Ahmed, the Executive Chairman and CEO of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, during the inauguration of a new CNG Integrated Refuelling Unit station in Karu, Abuja. The station was established through a collaboration between the State House, Pi-CNG, and Electric Vehicles, and Rolling Energy.

Ahmed highlighted that Nigeria has successfully moved beyond the experimental stage of CNG adoption, with private investors committing approximately $2.6 billion towards the development of infrastructure nationwide. He emphasized that President Bola Tinubu has ordered another phase of infrastructure development to enhance access to CNG fuel across the nation.

Ahmed stated, "We are not at the beginning anymore. The market has been proven. The investors are contributing $2.6bn worth of private investment. Our President has ordered another round of about 500 infrastructure units to come in through the MDGIF."

The development of CNG refuelling stations is crucial as Nigeria seeks to reduce transportation costs following the removal of fuel subsidies in 2023, which led to a significant rise in fuel prices. The country possesses substantial natural gas reserves, but a considerable portion of this resource has been underutilized due to gas flaring.

At the inauguration, the Permanent Secretary at the State House, Temitope Fashedemi, affirmed the government's commitment to promoting CNG as a cost-effective transportation alternative and encouraging private-sector participation in the programme. The facility, constructed by converting an abandoned petrol dispensing station belonging to the State House, showcases how government institutions can support CNG initiatives by providing existing infrastructure and encouraging private businesses to invest.