The Federal Government said compressed natural gas (CNG) infrastructure is now operational in 20 states just as 10 more are to join in six to nine months.

This comes as an active gas supply contract, through the Gas Aggregation Company Nigeria (GACN), is said to have reached 20 million standard cubic feet per day (scf/d).

This assurance comes from the Presidential CNG Initiative (PCNGI), which seeks to accelerate the country’s shift toward cleaner and more affordable energy sources, especially in the transportation sector, and has created $500 million in private investment.

Speaking at the official launch of the Mobility CNG Supply Framework in Abuja, Managing Director of PCNGI, Michael Oluwagbemi, said an additional 10 states are expected to join the initiative within the next six to nine months.

Admitting that demand is rising and queues are building, requiring more supply, Oluwagbemi described the framework’s implementation as the beginning of a nationwide energy transition that combines private sector participation, regulatory alignment and commercial innovation.

According to him, the groundwork for the framework was laid in March 2024 when the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) approved a concessionary pricing structure for automotive CNG.

Oluwagbemi said the concessionary model would prevent arbitrage and build a reliable market by ensuring that gas intended for the transport sector is not diverted to other, more lucrative uses.

He said the number of fuelling stations has increased from 20 to over 65, with two new stations launched a few days ago in Ibadan through a partnership with Bovas.

An additional 27 to 28 stations are expected to be operational in the next four to five weeks, Oluwagbemi said, adding that over 175 stations are currently under construction.

Dangote Group has also committed to developing 100 additional stations, significantly expanding national coverage, he noted.

Oluwagbemi said from about 4,000 vehicles in 2023, mainly in Edo state, the country grew to over 50,000 CNG, excluding trucks.

According to him, queues at Abuja stations now stretch for hours, highlighting the pace of adoption and rising public interest. The initiative aims to convert between 125,000 and 200,000 additional vehicles by the end of the year, he said.

This, he said, would bring the total to approximately 300,000. The long-term target is to reach 1 million CNG-powered vehicles by 2027.

At the event, the Managing Director of the Gas Aggregation Company Nigeria (GACN), Chijioke Uzoho, stressed the broader gas commercialisation and supply strategy underpinning the initiative.

He explained that three major gas supply contracts have already been executed and commercialised.
Timelines for the contracts have been compressed from an average of three years to one to six months, reflecting a more agile and responsive approach to energy planning.