Federal Government Secures $791.49 Million CNG Investments in Just Two Months

The Federal Government of Nigeria has attracted an impressive $791.49 million in investments aimed at boosting the country’s Compressed Natural Gas (CNG) industry within just two months. This influx of capital reflects a significant level of investor confidence in Nigeria’s alternative fuel programme and its transition toward cleaner, more affordable energy sources.

The CNG investment drive is spearheaded by the Presidential Compressed Natural Gas Initiative (PCNGi), which was launched to support a shift from petrol to natural gas usage, especially in the transportation sector. While the initiative had earlier reported raising about $491 million over the past year, updated figures suggest that additional investments worth over $300 million have flowed in recently—bringing the total to nearly $800 million.

These investments are being channeled into various aspects of the CNG ecosystem. This includes the establishment of new CNG conversion centers, construction of refueling stations, acquisition of conversion kits, and deployment of infrastructure for vehicle retrofitting. The government’s goal is to reduce Nigeria’s reliance on imported petrol and address the rising cost of transportation, which has been worsened by fuel subsidy removal and high inflation.

So far, over 200 vehicle conversion centers have been set up across different parts of the country, with more than 50 refueling stations either completed or under construction. These facilities are enabling a growing number of drivers to switch to CNG-powered vehicles. Reports indicate that more than 50,000 vehicles—especially commercial buses, taxis, and tricycles—have already been converted.

The initiative is not only about environmental sustainability but also job creation. Government officials say that more than 80,000 direct and indirect jobs have been generated as a result of the increased activity in the CNG value chain. From technicians to engineers, logistics operators, and administrative staff, the sector is fast becoming a key employment source in Nigeria.

Private sector players, including fuel marketers, logistics firms, and financial institutions, are actively partnering with the government. Oil marketers are integrating CNG pumps into existing stations, while fintechs and banks are providing credit facilities to enable transport operators convert their vehicles. Companies such as NIPCO, BOVAS, and other indigenous firms have pledged their support and are contributing to infrastructure expansion.

However, despite these positive developments, industry analysts have raised concerns about the pace of infrastructure development relative to demand. While the number of converted vehicles continues to grow, the availability of CNG refueling stations remains limited in some states, leading to long queues and operational delays for vehicle owners.

There are also safety concerns about the quality of some conversion kits and installations, particularly when handled by unlicensed technicians. To tackle this, the government is launching regulatory frameworks that mandate proper certification for all conversion centers. A monitoring system is also being put in place to ensure all CNG-powered vehicles are registered and inspected periodically.

In terms of future plans, the government is looking to increase the number of refueling stations by over 150 within the next year and hopes to convert at least one million vehicles to CNG by 2027. Additional funding sources, including green bonds and partnerships with development finance institutions, are being explored to support these targets.

The rising global focus on sustainable energy has added momentum to Nigeria’s CNG push. Investors are keen on tapping into a market with a large population and high transportation demand. Moreover, Nigeria’s abundant natural gas reserves provide the perfect foundation for a long-term transition away from petrol.

If sustained, the current wave of CNG investments could position Nigeria as a leader in alternative transportation energy across Africa. It could also ease the burden on consumers, lower emissions, and reduce the government’s exposure to global oil market volatility. The ultimate test, however, lies in execution—ensuring that these investments translate into accessible, safe, and efficient services for ordinary Nigerians.