Nigeria to establish 500 Compressed Natural Gas refuelling stations in three years, boosting cleaner energy adoption and reducing fuel dependency

Compressed Natural Gas refuelling stations are set to expand rapidly across Nigeria, with the Federal Government planning to establish 500 stations nationwide within three years.

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The announcement follows discussions between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and Chinese manufacturer Endurance Group, the Executive Director of MDGIF, Oluwole Adama, confirmed.

The talks resulted in the creation of a government-backed Special Purpose Vehicle (SPV) called the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo).

The SPV, promoted by MDGIF, the Bank of Industry, Endurance Group, and Séquor Investment Partners, will deploy 500 integrated CNG refuelling stations, develop LCNG supply infrastructure, and provide CNG and LNG transportation trucks with truck-mounted cascades to form a virtual pipeline across the country.

Adama highlighted that the initiative aims to tackle long queues at existing stations and expand access to refuelling points, ensuring uninterrupted supply for users nationwide.

The rollout aligns with Nigeria’s ongoing energy transition, following the removal of fuel subsidies and liberalisation of the downstream market.

Government officials argue that auto-CNG adoption will stabilise transportation costs, improve energy security, and reduce foreign exchange pressure caused by fuel imports.

With over 200 trillion cubic feet of proven gas reserves, Nigeria has historically struggled with midstream infrastructure gaps.

The new initiative, a flagship component of the Presidential Compressed Natural Gas Initiative launched in 2023, is expected to deepen auto-CNG usage, support economic reforms, and create employment across the gas value chain.

Eric Lin, CEO of Endurance Group, said the SPV will establish a nationwide refuelling, maintenance, and logistics ecosystem by leasing CNG equipment to certified operators and ensuring a steady gas supply through a reliable virtual pipeline.

“CAM InfraCo’s leasing and logistics strategy is designed to create a commercially viable and resilient national CNG refuelling network,” he explained.

The distribution model will deliver gas from strategically located mother stations into underserved northern corridors and high-demand southern clusters, leveraging existing hubs and planned infrastructure for sustained expansion.

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Once completed, the initiative is expected to significantly increase access to gas-powered transportation, reduce reliance on imported fuels, and advance Nigeria’s transition to cleaner, more affordable energy.