Nigeria’s capacity for compressed natural gas (CNG) conversion has skyrocketed by an estimated 2500% over the past year, according to the country’s Midstream and Downstream Regulatory Authority (NMDPRA).
Farouk Ahmed, the Chief Executive of NMDPRA, made the announcement during the inaugural Petroleum Industry Stakeholders Forum held in Abuja on Thursday. He attributed this impressive growth to the Authority’s support for the Presidential CNG Initiative (PCNGI), which has been instrumental in the establishment of 186 new conversion centers across the country.
Ahmed highlighted that these conversions, coupled with new vehicle purchases, have increased the Nigerian Gas Vehicles (NGV) population to an estimated 30,000 to 50,000 vehicles and trucks, a number that continues to grow daily.
“The development of CNG as a viable alternative to petrol has been incentivized,” Ahmed said. “The NMDPRA has supported the PCNGI, which has over the last year helped stimulate the creation of 186 new conversion centers, raising Nigeria’s conversion capacity by over 2500%. These efforts have pushed the NGV population to an estimated 30,000 to 50,000 vehicles and trucks, with the numbers continuing to rise.”
In terms of refueling infrastructure, Ahmed shared that Nigeria has attracted over $400 million in investment for the development of 86 new daughter stations and 65 mother stations under construction. As a result, the country’s refueling capacity has increased from 20 to 56 stations.
The NMDPRA, in collaboration with the PCNGI and the Standards Organisation of Nigeria (SON), has also developed standards and initiated the Nigeria Gas Vehicle Monitoring System, a safety measure already in its pilot phase and slated for launch in 2025.
To address the energy financing gap, NMDPRA is supporting the establishment of the Africa Energy Bank, which is expected to play a crucial role in attracting investment for key infrastructure projects across the continent. Ahmed emphasized that Nigeria is positioning itself to be the energy hub of Africa, thanks to competitive financing and a favorable regulatory environment.
Furthermore, the NMDPRA is backing the Decade of Gas Program, which is focused on unlocking Nigeria’s vast natural gas resources for industrialization. The program supports gas supply and infrastructure development, with the NMDPRA implementing a pricing regime that fosters the growth of gas supply, infrastructure, and utilization projects, in line with the Petroleum Industry Act (PIA) provisions.
The NMDPRA has also committed to transparency and accountability, progressively automating its processes to boost efficiency. In the past year, the Authority has enacted 20 regulations to enforce PIA provisions, including a revised Gas Transportation Network Code and the operationalization of the Gas Infrastructure Development Fund (MDGIF), designed to catalyze investment in gas infrastructure.
The NMDPRA has also streamlined the issuance of licenses, permits, and authorizations for new refineries, gas plants, pipelines, and other hydrocarbon facilities. Additionally, the Authority maintains strong interagency collaborations with security agencies like the NSA, DSS, Customs, and the Nigerian Navy to curb illegal activities such as petroleum product diversion and smuggling.
The NMDPRA is working closely with the SON, the National Automotive Design and Development Council (NADDC), and the National Institute of Transportation Technology (NITT) to ensure the safe and sustainable growth of CNG mobility in Nigeria.
However, Ahmed acknowledged some challenges, including the operation of petroleum handling facilities without proper licenses and permits, poor collaboration on open or third-party access to facilities, and a lack of cooperation from some operators in adhering to the PIA regulations.
He urged stakeholders to comply with all regulatory requirements, particularly regarding safety, efficiency, best practices, sustainability, consumer protection, and community engagement.
Looking ahead, the NMDPRA plans to continue consolidating its successes in 2025 by upgrading its laboratories for improved product quality analysis, enhancing inter-agency collaboration, and promoting sustainability across the industry. The Authority will also continue to work with the PCNGI to expand CNG infrastructure in major cities like Lagos and Abuja, aiming for 100,000 vehicle conversions and further collaboration with state governments to develop NGVs in other regions.
