ABUJA, Nigeria (VOICE OF NAIJA)-The Federal Government plans to set up 500 Compressed Natural Gas refuelling stations nationwide within three years as part of efforts to fast-track Nigeria’s shift to cleaner and more affordable fuels while reducing pressure on petrol consumption.
This development comes after the Midstream and Downstream Gas Infrastructure Fund concluded discussions with Chinese equipment manufacturer Endurance Group on the rollout of large-scale CNG infrastructure, according to a statement issued on Sunday by the Executive Director of the MDGIF, Oluwole Adama.
The statement read, “The Midstream and Downstream Gas Infrastructure Fund concludes discussion with leading Chinese Manufacturer Endurance Group to make available 500 CNG refuelling stations across Nigeria for the next three years.”
Adama explained that the talks led to an agreement to establish a government-backed Special Purpose Vehicle promoted by the MDGIF, Bank of Industry, Endurance Group, and Séquor Investment Partners to execute the project.
He said the SPV, to be called Compressed Natural Gas Auto Mobility Infrastructure Company, will “deploy 500 integrated CNG refuelling stations; develop LCNG gas supply infrastructure; and provide CNG and LNG transportation trucks with truck-mounted cascades, forming a virtual pipeline across all states nationwide.”
“The collaboration underscores the parties’ commitment to accelerating Nigeria’s transition to cleaner fuels by addressing infrastructure gaps across the country’s CNG value chain.
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Under this agreement, we will set up the Compressed Natural Gas Auto Mobility Infrastructure Company, which will be used to deploy 500 integrated CNG refuelling stations, develop LCNG gas supply infrastructure, and provide CNG and LNG transportation trucks with truck-mounted cascades, forming a virtual pipeline across all states nationwide.”
He added that the initiative would ease the long queues currently seen at existing CNG stations by expanding access to refuelling points and enhancing logistics to guarantee steady supply.
The plan aligns with the administration’s push toward gas as a cheaper alternative to petrol and diesel following subsidy removal and downstream market deregulation.
Officials maintain that wider auto-CNG adoption is essential for stabilising transportation costs, improving energy security, and reducing pressure on foreign exchange used for fuel imports.
Despite holding over 200 trillion cubic feet of proven gas reserves, Nigeria has faced longstanding challenges in developing sufficient midstream infrastructure, leaving many regions underserved.
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The CNG rollout forms a major part of the Presidential Compressed Natural Gas Initiative launched in 2023 to cut dependence on Premium Motor Spirit and Automotive Gas Oil.
Commenting on the development, the Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, said the CAM InfraCo project directly supports President Bola Tinubu’s energy security agenda by deepening the adoption of auto-CNG and creating new jobs within the domestic gas value chain.
Endurance Group CEO, Eric Lin, said the SPV aims to build a nationwide refuelling, maintenance, and logistics ecosystem by leasing CNG equipment to certified operators and ensuring steady supply through a reliable virtual pipeline network.
“CAM InfraCo’s leasing and logistics strategy is designed to create a commercially viable and resilient national CNG refuelling network,” Lin said.
He added that the distribution model would supply gas from strategically located mother stations into underserved northern routes and high-demand southern clusters, using existing hubs and future infrastructure to support sustained and cost-effective expansion.
Once completed, the initiative is expected to significantly expand access to gas-powered transportation, reduce reliance on imported fuels, and strengthen Nigeria’s transition to cleaner energy sources.