The Federal Government plans to roll out 500 Compressed Natural Gas (CNG) refuelling stations across the country within the next three years as part of efforts to fast-track Nigeria’s shift to cleaner, cheaper fuels and reduce pressure on petrol consumption.
This followed the conclusion of discussions between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and Chinese equipment manufacturer, Endurance Group, on the deployment of large-scale CNG infrastructure. The agreement was disclosed in a statement on Sunday by the Executive Director of the MDGIF, Oluwole Adama.
According to the statement, the discussions produced an arrangement to set up a government-backed Special Purpose Vehicle involving the MDGIF, Bank of Industry, Endurance Group and Séquor Investment Partners. The SPV will drive the rollout of the stations, which will be deployed under the name Compressed Natural Gas Auto Mobility Infrastructure Company.
Adama said the company will be responsible for deploying the 500 integrated CNG stations, developing LCNG supply infrastructure, and providing CNG and LNG transportation trucks equipped with truck-mounted cascades to serve as a virtual pipeline across all states.
He explained that the initiative aims to close long-standing infrastructure gaps along the CNG value chain and ease the persistent queues currently seen at existing refuelling points.
The move aligns with the administration’s broader push to promote gas as a viable alternative to petrol and diesel following fuel subsidy removal and downstream market liberalisation. Government officials have maintained that large-scale CNG adoption will help stabilise transport costs, strengthen energy security and reduce foreign exchange pressure from fuel imports.
Despite holding over 200 trillion cubic feet of proven gas reserves, Nigeria has struggled for years to develop sufficient midstream infrastructure, leaving many regions underserved.
The planned rollout is a major component of the Presidential Compressed Natural Gas Initiative launched in 2023 to reduce reliance on Premium Motor Spirit and Automotive Gas Oil.
Commenting on the project, the Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, said the CAM InfraCo initiative aligns with President Bola Tinubu’s energy security agenda and is expected to deepen auto-CNG usage nationwide while supporting ongoing economic reforms and creating jobs.
The Chief Executive Officer of Endurance Group, Eric Lin, noted that the SPV’s objective is to build a nationwide CNG refuelling, maintenance and logistics ecosystem by leasing equipment to certified operators and maintaining a reliable virtual pipeline network to ensure steady supply.
He added that the distribution model will enable gas delivery from mother stations to underserved northern corridors and high-demand southern hubs, leveraging existing and planned infrastructure for sustained expansion.
The project is expected to significantly improve access to gas-powered transportation, reduce reliance on imported fuels, and support Nigeria’s transition toward cleaner energy sources.
