Nigeria to expand CNG station network to 1,000 to lower transport costs

President Bola Tinubu has ordered the deployment of 500 additional compressed natural gas (CNG) refuelling stations across Nigeria, bringing the total planned network to 1,000 stations. This initiative, developed in collaboration with the Nigeria Governors’ Forum, aims to reduce transportation costs for commuters following the removal of petrol subsidies.

The government expects that transitioning to CNG can reduce fuel expenses for vehicles by 60 to 80 percent compared to petrol. To ensure these savings reach the public, a joint federal and state committee will be established to monitor transport fares and implement cost-reduction measures. Currently, over 120,000 vehicles have been converted to CNG, with another 100,000 conversion kits in progress.

In support of this transition, the National Automotive Design and Development Council has licensed 81 companies to retail CNG. The Midstream and Downstream Gas Infrastructure Fund is financing over 100 gas-related projects nationwide. Additionally, the progress of NLNG’s Train 7 project, which is over 90 percent complete, is viewed as a critical component of Nigeria’s broader gas economy and export ambitions.