Nigerian Government Announces CNG Station Rollout to Reduce Fuel Prices

The Nigerian government is significantly advancing the adoption of Compressed Natural Gas (CNG) as a viable alternative to petrol, following the removal of fuel subsidies in May 2023. A key component of this initiative is the development of CNG refueling infrastructure across the nation.
According to the Presidential CNG Initiative (Pi-CNG), approximately 150 new CNG refueling stations are slated to be ready within the next 18 months. Michael Oluwagbemiga, the chief executive of Pi-CNG, announced this ambitious target on April 7, 2025, emphasizing the initiative's commitment to ensuring easy access to CNG for Nigerians.
The Nigerian National Petroleum Company Limited (NNPC) is actively involved in this expansion, having already deployed 12 CNG stations. Additionally, eight more stations are currently under construction and expected to be completed this quarter. Furthermore, plans are in place to secure an additional 100 stations over the next 18 months, indicating a robust and sustained effort to bolster the country's CNG infrastructure.
Other companies are also contributing to the development of CNG infrastructure. NIPCO has imported equipment for 32 daughter station sites, with 22 already operational and eight under construction. BOVAS has eight stations under construction, while AY Shafa has completed one station and has nine more underway. These collaborative efforts between government entities and private sector partners are crucial to achieving the initiative’s goals.
In a related development, the committee addressed the CNG vehicle explosion that occurred in Benin last year. Investigations revealed that the incident was due to the illegal fabrication of CNG cylinders by saboteurs, who have since been apprehended. This highlights the importance of stringent safety standards and regulatory oversight in the CNG sector.
President Bola Tinubu has been a strong advocate for the adoption of CNG, presenting it as an economically sound alternative to petrol. He has encouraged Nigerians to consider CNG, priced at N200 per liter, compared to petrol, which can cost as much as N1,000 per liter. The Pi-CNG committee is also facilitating the transition by offering free conversion of petrol vehicles to CNG, providing conversion kits to vehicle owners.
Analysts predict that the widespread adoption of CNG will significantly reduce Nigeria’s dependence on petrol and diesel, offering both economic and environmental benefits. Local vehicle manufacturers, including Innoson and Lanre Shittu Motors (LSM), have started assembling CNG buses for commercial use, further supporting the transition.
NIPCO Plc has announced plans to establish 35 new CNG stations nationwide, along with three major mother stations by 2024. This expansion aims to serve over 200,000 vehicles daily and is being implemented through a strategic partnership between NIPCO Gas Limited and NNPCL to address infrastructure gaps.
Overall, the Nigerian government's commitment to expanding CNG infrastructure and promoting its adoption is expected to transform the country's transportation sector, offering a cleaner and more affordable alternative to traditional fuels.