CNG Investments Reach $980 Million, Presidency Reports

The Presidency has announced that investments in Nigeria’s Compressed Natural Gas (CNG) sector have reached $980 million, marking a significant milestone in the Federal Government’s efforts to promote cleaner and more affordable energy alternatives. This achievement is part of a broader strategy to reduce the country’s dependence on petrol and diesel, while simultaneously addressing environmental and economic challenges.

Chief Executive Officer and Programme Director of the Presidential Compressed Natural Gas Initiative (PCNGI), Michael Oluwagbemi, disclosed the figure on Tuesday in Abuja, noting that the CNG expansion programme is a major pillar of President Bola Tinubu’s Renewed Hope Agenda. He stated that the nearly $1 billion investment reflects strong commitment from both the public and private sectors, including local and international partners, who believe in the future of Nigeria’s alternative energy market.

According to Oluwagbemi, the CNG initiative is designed to offer Nigerians cheaper and cleaner fuel options for transportation, industrial use, and power generation. “With close to $1 billion already committed to this sector, we are on the right track to cut our dependency on petrol and diesel, slash greenhouse gas emissions, and significantly lower operating costs for individuals and businesses,” he said.

He explained that these investments are being directed into critical infrastructure such as refuelling stations, vehicle conversion kits, and assembly plants, as well as the training of technicians. The PCNGI is working towards establishing over 100 CNG refuelling stations nationwide by the end of 2025, alongside a mass rollout of CNG-powered public transport vehicles.

Oluwagbemi noted that the investment surge has been driven by policy incentives, regulatory reforms, and strategic collaborations between the government and industry stakeholders. He highlighted ongoing government measures such as import duty waivers for CNG-related equipment, tax incentives, and easier access to financing, which are designed to attract more private sector participation.

He also emphasised the job creation potential of the initiative, pointing out that the CNG industry could generate thousands of employment opportunities across the value chain, from engineering and manufacturing to logistics and station management. “This programme is not just about cleaner energy; it’s about building a new industrial ecosystem that will benefit millions of Nigerians,” Oluwagbemi said.

The push towards CNG adoption gained momentum after the removal of petrol subsidies in 2023, which drove up fuel prices and spurred interest in alternative energy solutions. Being sourced locally, CNG is seen as a more cost-effective and stable option, insulating the Nigerian economy from global oil price shocks while improving energy security.

Industry experts have welcomed the investment growth, noting that CNG-powered transportation could cut costs by up to 40% compared to petrol and diesel, while also producing far fewer emissions. They believe the programme could play a key role in meeting Nigeria’s climate action targets and reducing air pollution in urban areas.

Oluwagbemi stated that the PCNGI is working closely with state governments, transport unions, and private operators to ensure a smooth and efficient rollout of CNG infrastructure. He explained that agreements are in place with transport companies and ride-hailing platforms to convert thousands of vehicles to CNG systems over the coming years.

He further revealed that part of the $980 million investment is earmarked for the establishment of training and certification programmes for technicians nationwide, ensuring that the country develops a skilled workforce capable of sustaining the sector’s growth without heavy reliance on foreign expertise.

Beyond transportation, the Presidency believes the CNG programme has the potential to power small and medium-sized enterprises, especially in regions where electricity supply from the national grid is unreliable. This could reduce dependence on expensive diesel generators, lower production costs, and boost competitiveness for local manufacturers.

Oluwagbemi reassured investors and the general public that the government remains committed to maintaining a stable policy environment for the CNG market. “We are building the foundation for a cleaner, cheaper, and more sustainable energy future. This is a transformative opportunity, and we are determined to see it succeed,” he said.

Economic analysts say that if the investment momentum continues, Nigeria could position itself as a leading hub for CNG technology and services in West Africa, leveraging its abundant natural gas reserves to attract additional foreign investment.

The Presidency is optimistic that with sustained funding, public awareness campaigns, and industry partnerships, the CNG programme will transform Nigeria’s energy landscape, create jobs, lower transportation and production costs, and contribute to a cleaner environment for future generations.