By Ada Samson, Abuja
Nigeria’s drive to deepen the adoption of Compressed Natural Gas as an alternative transport fuel has taken a further step, with the Federal Government attracting over $440.79m in investments between May and June 2025, The PUNCH reports.
It has also ramped up its push for compressed natural gas adoption in the transport sector, mobilising over $980m in investments and deploying more than 100,000 CNG kits within 12 months as part of the Presidential CNG Initiative.
This was disclosed in a document obtained from the Presidential Initiative on Compressed Natural Gas Secretariat on Wednesday in Abuja.
“Between May and June 2025 alone, we mobilised over $440m in private sector investments into the CNG ecosystem, covering infrastructure, conversion kits, logistics, and platforms. This surge reflects growing investor confidence in Nigeria’s clean energy transition and the bankability of the PCNGI model.”
“This sharp rise in investment is a direct result of renewed investor confidence, stronger policy direction, and proof of concept seen in the ongoing nationwide deployment,” it said.
The document revealed that over 1,440 vehicles have so far been converted across 20 states, with 807 CNG-powered buses and over 5,000 tricycles procured to deepen clean energy adoption and reduce transportation costs.
The Federal Government also plans to facilitate the conversion of one million vehicles and train at least 25,000 autogas technicians by 2027, with 250,000 new bi-fuel vehicles expected to hit the roads within that period.
Describing fuel subsidy as an “albatross”, the PCNGI noted that Nigeria had spent about N1tn on petrol subsidies in 2023, despite sitting on vast gas reserves.
According to the secretariat, “Nigeria continues to subsidise the importation of over 75 million litres of petrol daily despite producing 1.2 million barrels of crude oil per day. The country is sitting on a wealth of natural gas that must be harnessed for sustainable mobility.”
So far, 65 mother refuelling stations and 300 new conversion centres have been deployed nationwide, with 260 in advanced development, while 175 daughter stations are under construction, 30 of which are now operational.
The initiative, which operates under the Office of the Special Adviser to the President on Energy, is being powered by partnerships with state governments, private investors, and financiers such as NIPCO Gas and the Ministry of Finance.
Breakdown of recent procurement activities shows that out of 23,845 CNG kits ordered in 2023, 17,346 have been received while 16,672 have already been deployed. In 2024, 27,100 kits and 53,000 cylinders are already in supplier warehouses awaiting delivery. In total, 125,000 vehicle conversions are being targeted this year alone.
A total of 5,213 tricycles and 531 petrol-CNG buses were ordered, with 391 buses and all tricycles already received. Similarly, 40 electric buses have also been delivered.
PCNGI is currently active in 20 states with another 11 expected to join the national gas mobility footprint within the next six to nine months. The initiative targets 1,000 auto-gas conversion workshops by 2027, with a capacity to convert 250,000 vehicles annually and create over 300,000 indirect jobs.
“The goal is not only cleaner, cheaper fuel but also economic empowerment,” the secretariat stated. “Already, over 5,500 conversion technicians have been trained, and over five incentive programmes have been launched, including fare reduction, refuelling on-lend, and consumer subsidy models.”
In its economic impact outlook, PCNGI projects a CO₂ emissions reduction of over 57 per cent and cumulative fuel cost savings of more than N500bn if fully implemented.
The report also flagged infrastructure and gas availability as key challenges but noted that “proactive planning, strong teams, rapid response, and clear policy direction” have mitigated early risks.
“Only one incident during adoption is too much,” it warned. “Safeguards must be guided by strict quality control, technology-based monitoring, and effective enforcement.”
With global natural gas vehicle penetration led by China, Iran, and India, the federal government is banking on CNG to revolutionise mass transit, inter-city and intra-city transportation, and reduce the impact of fuel deregulation.
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