The Federal Government says it has secured more than $2bn in private-sector investment for the development of Compressed Natural Gas (CNG) infrastructure and the wider value chain, a development expected to create opportunities for transport operators, logistics businesses and other MSMEs across Nigeria.
The government also disclosed that more than 90 CNG refuelling stations are now operating across the country as part of efforts to expand access to the cheaper alternative to conventional transport fuels.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed this in a statement issued on Tuesday by his spokesman, Louis Ibah.
According to Ekpo, the investment was facilitated through the Presidential Initiative on Compressed Natural Gas (Pi-CNG), launched in 2023, and has supported the expansion of refuelling stations, vehicle conversion centres, technical capacity and other infrastructure required to increase CNG adoption.
He said more than 120,000 vehicles had been converted to CNG through over 400 certified conversion centres, alongside the more than 90 refuelling stations currently available nationwide.
“Since the launch of the Presidential Initiative on Compressed Natural Gas in 2023, the Federal Government, working with relevant stakeholders, has facilitated significant private-sector investment in the CNG value chain, with more than $2bn secured for CNG infrastructure and value-chain development,” Ekpo said.
The minister added that the programme had trained more than 7,700 automotive technicians and created over 10,000 direct and indirect jobs. It has also supported the procurement and deployment of 655 CNG buses and 5,123 CNG tricycles.
For MSMEs, the growing CNG ecosystem could provide opportunities beyond fuel savings. Businesses involved in vehicle conversion, maintenance, spare parts, transportation, logistics and technical services could benefit from increased demand as more vehicles transition to gas.
Commercial transport operators and small logistics companies could also reduce operating costs if CNG remains cheaper and accessible compared with conventional fuels. Lower fuel expenses could improve margins for businesses that depend heavily on vehicles to move people, goods and services.
Ekpo said commercial transport operators, private vehicle owners and fleet managers were already reporting significant fuel-cost savings and improved profitability from CNG adoption.
He added that commuters using CNG-powered buses were also benefiting from lower fares, stressing that the government’s objective extended beyond increasing the number of CNG vehicles and refuelling stations.
“The objective is not simply to increase the number of CNG vehicles and refuelling stations, but to translate fuel savings into lower transportation and logistics costs, ease the cost of living and improve economic productivity,” he stated.
The minister said the Federal Government was working with Pi-CNG, the Midstream and Downstream Gas Infrastructure Fund, state governments, transport unions, operators, investors and other stakeholders to expand conversion and refuelling infrastructure.
The stakeholders are also developing dedicated CNG corridors and working to extend access to underserved communities.
Ekpo further welcomed President Bola Tinubu’s directive for an additional 500 CNG refuelling stations, which he said would increase the planned national network to 1,000 stations.
For small businesses, the expansion of the network could help address one of the major challenges associated with CNG adoption: limited access to refuelling points. A wider network could make it easier for MSMEs to convert their vehicles and rely on CNG for daily operations.
As investment continues across the CNG value chain, the sector could also create new opportunities for entrepreneurs and skilled workers in vehicle conversion, equipment supply, repairs, transportation and other support services.
The expansion therefore has the potential to position CNG not only as an alternative fuel but also as a growing business ecosystem capable of reducing operating costs and creating new opportunities for Nigerian MSMEs.