Nigeria's Green Future: 500 CNG Stations Planned in Three Years

Published 1 month ago2 minute read
Pelumi Ilesanmi
Pelumi Ilesanmi
Nigeria's Green Future: 500 CNG Stations Planned in Three Years

Nigeria is taking a major step towards cleaner energy with the Midstream and Downstream Gas Infrastructure Fund (MDGIF) announcing a collaboration with Chinese manufacturer Endurance Group to establish 500 compressed natural gas (CNG) refuelling stations nationwide within the next three years. The initiative aims to reduce reliance on traditional fuels and promote sustainable mobility across the country.

Executive Director of MDGIF, Mr. Oluwole Adama, revealed that discussions in Abuja focused on forming a government-backed Special Purpose Vehicle (SPV) named the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo). The SPV will be jointly promoted by MDGIF, the Bank of Industry (BOI), Endurance Group, and Séquor Investment Partners. This strategic alliance is designed to bridge gaps in Nigeria’s CNG infrastructure and accelerate the transition to cleaner fuel alternatives.

CAM InfraCo will oversee the deployment of 500 integrated CNG refuelling stations nationwide. The project also includes the development of LCNG gas supply infrastructure and the provision of CNG and LNG transportation trucks equipped with truck-mounted cascades. This “virtual pipeline” logistics system will ensure a reliable and consistent gas supply across all states.

Mr. Adama emphasized that the initiative will address the long queues at existing CNG stations by expanding access and improving distribution systems. This expansion is expected to enhance the consumer experience and ensure steady availability of CNG across Nigeria.

Senior Special Adviser to the President on Special Duties and Domestic Affairs, Mr. Oluwatoyin Subair, highlighted that the project aligns with President Bola Tinubu’s vision for energy security, aiming to reduce Nigeria’s dependence on Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), especially in the transportation sector. He also noted that the initiative supports broader economic reforms, providing cleaner, affordable energy and creating new employment opportunities within the domestic gas value chain.

Endurance Group CEO, Mr. Eric Lin, detailed that CAM InfraCo’s mission is to build a robust nationwide CNG refuelling, maintenance, and logistics ecosystem, including leasing CNG equipment to certified operators. The SPV’s strategy focuses on delivering gas from mother stations to underserved northern corridors and rapidly expanding southern clusters, leveraging both existing and planned infrastructure to foster a commercially viable and resilient national CNG network.

This ambitious project positions Nigeria at the forefront of Africa’s transition to sustainable transportation fuels, reinforcing the country’s commitment to green energy solutions and economic modernization.

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