NIGERIA: FG to Build 500 CNG Stations Nationwide in Three Years

By Ameenat Hamzat, Lagos, Nigeria 

The Federal Government has concluded arrangements to establish 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria within the next three years, in a major push to expand access to cheaper and cleaner automotive fuel across the country.

The development follows the conclusion of discussions between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and leading Chinese manufacturer, Endurance Group, on large-scale deployment of CNG infrastructure nationwide.

Executive Director of MDGIF, Oluwole Adama, confirmed the agreement in a statement released on Sunday.

The statement reads: “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 3 years.”

Adama said the talks produced an agreement to establish a government-backed Special Purpose Vehicle involving the MDGIF, Bank of Industry, Endurance Group, and Séquor Investment Partners to drive implementation.

According to him, the SPV, to be known as the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), will deploy the 500 integrated stations, develop LCNG supply networks, and provide CNG and LNG trucks fitted with truck-mounted cascades to serve as virtual pipelines across all states.

Adama noted that the initiative will help address the long queues currently witnessed at the few existing CNG outlets by improving access to refuelling points and strengthening distribution logistics for uninterrupted supply.

The project is one of the flagship components of the Presidential Compressed Natural Gas Initiative introduced in 2023 to reduce Nigeria’s reliance on petrol and diesel following the removal of fuel subsidy and full liberalisation of the downstream market.

Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, welcomed the agreement, saying the CAM InfraCo rollout aligns with the administration’s energy security reforms.

On his part, the Chief Executive Officer of Endurance Group, Eric Lin, said the partnership aims to build a robust nationwide ecosystem for refuelling, logistics, and maintenance.

Lin stated:“CAM InfraCo’s leasing and logistics strategy is designed to create a commercially viable and resilient national CNG refuelling network.”

He added that the distribution model would enable the movement of gas from strategically located mother stations into underserved northern corridors and high-demand southern clusters through a reliable virtual pipeline network.

With Nigeria holding over 200 trillion cubic feet of proven natural gas reserves, officials say the infrastructure expansion will support widespread adoption of auto-CNG, reduce dependence on imported fuels, and accelerate the country’s transition to cleaner and more affordable energy sources.