Nigeria’s push to expand the use of Compressed Natural Gas (CNG) as a cleaner and more affordable transport fuel has gained significant traction, with over $791.49 million in private sector investments attracted between May and June 2025 alone.
According to a document from the Presidential Initiative on Compressed Natural Gas (PCNGI) obtained in Abuja on Wednesday, July 30, 2025, the investment surge highlights growing confidence in the country’s clean energy transition and the viability of the PCNGI model.
“In just two months, we’ve mobilised nearly $800 million in investments across infrastructure, logistics, and conversion platforms,” the secretariat stated. “This reflects strong investor belief in Nigeria’s policy direction and our clean mobility goals.”
Since its launch, the Presidential CNG Initiative has mobilised more than $980 million in total investments and deployed over 100,000 CNG conversion kits in just 12 months. So far, 1,440 vehicles have been converted across 20 states, while 807 CNG-powered buses and over 5,000 tricycles have been procured to reduce transport costs and promote cleaner energy.
The Federal Government aims to convert one million vehicles and train 25,000 autogas technicians by 2027. It also plans to introduce 250,000 new bi-fuel vehicles during this period, targeting 1,000 conversion workshops with the capacity to convert 250,000 vehicles annually, potentially creating over 300,000 indirect jobs.
The PCNGI highlighted Nigeria’s ongoing petrol subsidy burden, estimated at ₦1 trillion in 2023, as a major obstacle despite the nation’s large natural gas reserves. “Nigeria continues to subsidise over 75 million litres of petrol daily while sitting on vast gas resources,” the secretariat said.
To support the initiative, the government has established 65 mother refuelling stations, 300 new conversion centres, and is developing 175 daughter stations, 30 of which are already operational.
Breakdown of recent procurement reveals that out of 23,845 CNG kits ordered in 2023, over 16,600 have been deployed. For 2024, 27,100 kits and 53,000 cylinders are ready for delivery. Additionally, 5,213 tricycles, 531 petrol-CNG buses, and 40 electric buses have been ordered, with most already received.
The programme is currently active in 20 states, with 11 more expected to join within the next six to nine months. Five incentive programmes, including fare reduction schemes and consumer subsidy models, have also been introduced.
The PCNGI projects a 57% reduction in CO₂ emissions and ₦500 billion in cumulative fuel savings if fully implemented. While noting infrastructure gaps and gas availability as key challenges, the secretariat said strong policy support and planning have helped mitigate early risks.
With global leaders like China, India, and Iran dominating natural gas vehicle adoption, Nigeria hopes its CNG revolution will transform mass transit, improve energy affordability, and position the country as a regional clean energy leader.
Standards for CNG refuelling and vehicle compatibility have already been released by the Standards Organisation of Nigeria, and a Nigeria Gas Vehicle Monitoring System is currently in development.
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