Nigeria Bets Big On Cheaper Transport as CNG Investment’s Inflow Hits $2Bn

The Nigerian Government has reaffirmed its commitment to expanding the use of Compressed Natural Gas (CNG) as a cheaper, cleaner and more sustainable alternative to petrol and diesel, saying the initiative is already reducing transportation costs and easing the cost-of-living burden on Nigerians.

A statement sent to NOP NIGERIA quoted Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, to have made this known, highlighting the progress recorded under the Presidential Initiative on Compressed Natural Gas (Pi-CNG) since its launch in 2023.

Ekpo said the programme has attracted more than $2 billion in private-sector investment into CNG infrastructure and value-chain development, driving rapid expansion of refuelling stations, vehicle conversion centres and technical capacity across the country.

According to him, over 120,000 vehicles have been converted to CNG through a network of more than 400 certified conversion centres and over 90 refuelling stations nationwide.

The minister added that the initiative has trained more than 7,700 automotive technicians, created over 10,000 direct and indirect jobs, and facilitated the deployment of 655 CNG buses and 5,123 CNG tricycles to strengthen public transportation.

He said the growing adoption of CNG demonstrates that the fuel has moved beyond being a future alternative and is now a practical solution to rising transportation costs following the removal of the petrol subsidy.

Ekpo noted that commercial transport operators, private motorists and fleet managers are already reporting significant savings on fuel expenses, while commuters using CNG-powered buses are benefiting from lower transport fares.

He stressed that the government’s objective goes beyond increasing the number of CNG vehicles and refuelling stations, explaining that the broader goal is to reduce transportation and logistics costs, improve economic productivity and provide relief for households, farmers, traders and businesses.

To sustain the momentum, the minister said the Ministry of Petroleum Resources is collaborating with Pi-CNG, the Midstream and Downstream Gas Infrastructure Fund (MDGIF), state governments, transport unions, investors and other stakeholders to expand conversion and refuelling infrastructure, establish dedicated CNG corridors and extend access to underserved communities.

Ekpo also commended President Bola Tinubu for approving the construction of an additional 500 CNG refuelling stations, which will increase the planned national network to 1,000 stations and accelerate nationwide adoption of the cleaner fuel.

He further praised state governors that have embraced the initiative through investments and partnerships, while urging other states to join the programme in the interest of commuters and the wider Nigerian economy.

The minister assured Nigerians that the Federal Government would continue working with investors and industry stakeholders to accelerate infrastructure deployment, deepen domestic gas utilisation and ensure the benefits of the CNG programme reach communities across the country.

NOP NIGERIA