Nigeria's CNG Drive Hits 106 Stations As $2.6bn Private Capital Flows In

Nigeria's CNG Drive Hits 106 Stations As $2.6bn Private Capital Flows In

Nigeria's push to replace expensive petrol with cheaper gas has reached a new milestone, with 106 Compressed Natural Gas (CNG) stations now operational across the country.

The figure was disclosed on Friday in Karu, Abuja, at the commissioning of a new CNG Integrated Refuelling Unit station built through a partnership between the State House, the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG), and Rolling Energy.

Speaking at the event, Pi-CNG Executive Chairman Ismaeel Ahmed said private investors have now committed about $2.6 billion to build out Nigeria's gas distribution ecosystem, a sign, he said, that the programme has moved beyond its pilot phase.

"This is almost our 106th station across the country in less than two years. This is not beginning any longer. The market has been proven," Ahmed said. "The investors are chipping in $2.6 billion worth of private investment."

For ordinary Nigerians, the numbers matter only if they translate into cheaper movement. That is the promise behind Nigeria CNG stations and the wider CNG transport Nigeria programme: gas is domestically produced, priced lower than petrol, and, supporters argue, less volatile than imported fuel.

The Karu station shows the model the government is pushing. An abandoned State House petrol dispensing facility was converted into a CNG refuelling and vehicle conversion centre. The State House provided the site, while Rolling Energy paid for rehabilitation and equipment, with no direct government expenditure on the project, according to officials.

Another 170 facilities are now at different stages of development or awaiting licences from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Ahmed said. President Bola Tinubu has also ordered another round of about 500 infrastructure units through the Midstream and Downstream Gas Infrastructure Fund (MDGIF).

What could this mean for drivers and transport costs? If the network keeps growing, commercial drivers who convert to CNG could cut fuel spending significantly, and that saving could eventually feed into lower fares. Pi-CNG has previously said CNG-powered buses have cut fares by 30 to 40 percent on some routes where they operate.

For now, though, the experience is uneven. In Abuja, a commuter like Musa Ibrahim, who takes a bus from Karu to Wuse every morning, still pays petrol-based fares most days because CNG buses are not yet on every route. "When the CNG bus comes, the fare is cheaper. When it doesn't, we pay normal price," he said. "We just want more buses and more stations so we don't have to wait."

That waiting game is the real test for this fuel alternative Nigeria is betting on. The infrastructure is growing, 106 stations in under two years, compared to 24,000 petrol stations built over 60 years, almost all privately owned. But for the saving to reach the average passenger, drivers need easy access to refuelling, affordable conversion, and reliable supply.

The $2.6 billion in private capital suggests investors believe that will happen. Whether commuters feel it in their pockets will depend on how quickly those 170 stations in the pipeline actually open, and how many more drivers can afford to make the switch.

Source: BusinessDay - Nigeria's CNG drive gains momentum as 106 stations go live, attracting $2.6bn private capital