The Federal Government of Nigeria is set to establish 500 Compressed Natural Gas (CNG) refuelling stations nationwide within the next three years, marking a significant move to accelerate the country’s transition to cleaner and more affordable fuels. The initiative aims to ease the severe economic pressure on petrol consumption following the removal of fuel subsidies.
The plan was solidified after discussions between Nigeria’s Midstream and Downstream Gas Infrastructure Fund (MDGIF) and the Chinese equipment manufacturer, Endurance Group.
In a statement released Sunday, Oluwole Adama, the Executive Director of the MDGIF, confirmed the agreement. “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 three years,” the statement read.
According to Adama, the agreement will create a government-backed Special Purpose Vehicle (SPV) named the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo). This new entity will be promoted by a consortium including the MDGIF, the Bank of Industry (BOI), Endurance Group, and Séquor Investment Partners.
The SPV’s mandate is comprehensive:
- Deploy 500 integrated CNG refuelling stations.
- Develop LCNG (Liquefied Natural Gas) gas supply infrastructure.
- Provide CNG and LNG transportation trucks with truck-mounted cascades, effectively creating a “virtual pipeline” to service all states.
“The collaboration underscores the parties’ commitment to accelerating Nigeria’s transition to cleaner fuels by addressing infrastructure gaps across the country’s CNG value chain,” Adama stated.
He noted that the initiative is expected to eliminate the long queues currently seen at existing CNG stations by rapidly expanding access to refuelling points and improving supply logistics.
Post-Subsidy Strategy
This large-scale infrastructure rollout is a cornerstone of the current administration’s shift toward gas as a viable alternative to petrol and diesel. Government officials have consistently argued that adopting auto-CNG is critical for stabilising transportation costs, enhancing national energy security, and reducing the significant foreign exchange pressure caused by fuel imports.
The move seeks to finally leverage Nigeria’s vast, proven gas reserves, which exceed 200 trillion cubic feet, but have remained underdeveloped for decades due to a lack of adequate midstream infrastructure.
The project is a flagship component of the Presidential Compressed Natural Gas Initiative (PCNGI), launched in 2023.
Commenting on the deal, Oluwatoyin Subair, the Senior Special Adviser to the President on Special Duties and Domestic Affairs, said the CAM InfraCo project directly aligns with President Bola Tinubu’s energy security agenda. He added that it would “deepen the use of auto-CNG nationwide, support the administration’s economic reforms, and create new employment opportunities across the domestic gas value chain.”
Eric Lin, Chief Executive Officer of Endurance Group, explained the operational strategy. He said the SPV will establish a nationwide ecosystem for refuelling, maintenance, and logistics. It plans to lease CNG equipment to certified operators and ensure a steady gas supply through its virtual pipeline network.
“CAM InfraCo’s leasing and logistics strategy is designed to create a commercially viable and resilient national CNG refuelling network,” Lin said.
He added that the distribution model would deliver gas from strategically located “mother stations” to high-demand southern clusters and underserved northern corridors.
When completed, the initiative is expected to significantly deepen access to gas-powered transportation, reduce Nigeria’s reliance on imported fuels, and strengthen its ongoing transition to cleaner energy sources.
