Nigeria’s Compressed Natural Gas (CNG) industry has demonstrated remarkable growth, attracting nearly $1 billion in private investments over the past 18 months. This rapid inflow of capital reflects growing confidence in the sector as a viable and sustainable transition to clean energy for transportation.
Industry experts and stakeholders are, however, calling for accelerated development of infrastructure, stronger collaboration between the government and private sector, and sustained advocacy efforts to overcome existing barriers to wider adoption. Despite the impressive investment figures and increasing vehicle conversions from just a few thousand to nearly 100,000 CNG-powered vehicles, the sector still faces significant gaps in the availability and accessibility of critical infrastructure.
One of the major challenges remains the need for expansion and maintenance of refuelling stations, conversion facilities, and trained technical personnel nationwide. While more than 20 states now have CNG facilities and over 315 auto conversion centres are operational, many regions still lack adequate coverage, limiting adoption especially beyond urban centres.
Major players such as Dangote Petroleum Refinery are further integrating CNG solutions in their logistics with large-scale investment in gas-powered trucks, signalling confidence and commitment from Nigeria’s corporate sector to this clean fuel technology.
The Federal Government’s Presidential Compressed Natural Gas Initiative (PCNGI) has laid vital groundwork by providing policy support and incentives, helping reduce transport fuel costs by up to 90%, making CNG a highly attractive alternative for vehicle owners.
Experts emphasise that closing the infrastructure gap, fostering public-private partnerships, and advocating for more favourable policies are instrumental to unlocking the sector’s full potential. Nigeria’s abundant natural gas reserves, coupled with this private investment momentum, position the CNG industry to become a cornerstone of the nation’s clean energy future, environmental sustainability, and transportation affordability.
As the sector moves forward, continued collaboration, technical innovation, and strategic investment will be key to sustaining growth and ensuring the CNG revolution benefits all Nigerians.
