FG Plans Deployment of 500 New CNG Stations Nationwide Within Three Years to Reduce Petrol Dependence

The Federal Government has ramped up its efforts to transition the nation’s transportation sector to cleaner and more affordable energy, today, Monday, November 17, 2025, announcing plans to deploy 500 new Compressed Natural Gas (CNG) refuelling stations across the country within the next three years.

The plan, a major component of the President Bola Tinubu administration’s post-subsidy economic reform agenda, was disclosed by the Midstream and Downstream Gas Infrastructure Fund (MDGIF) following the conclusion of discussions with a Chinese manufacturer, the Endurance Group, and other financial partners.

Mr. Oluwole Adama, the Executive Director of MDGIF, stated that the collaboration is designed to radically address the existing infrastructure gaps in the country’s CNG value chain, which has slowed the widespread adoption of the cheaper fuel alternative.

“Under this agreement, we will establish the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), a government-backed Special Purpose Vehicle, to deploy 500 integrated CNG refuelling stations,” Adama said. He added that the network would help eliminate the long queues currently witnessed at existing CNG outlets and ensure a consistent supply of gas through improved logistics.

A ‘Virtual Pipeline’ for Energy Security

The initiative is intended to strengthen Nigeria’s energy security by deepening the use of auto-CNG, thereby reducing overdependence on imported Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO). The plan involves not just the filling stations but also developing Liquefied-to-Compressed Natural Gas (LCNG) infrastructure and providing dedicated transportation trucks, which together will form a “virtual pipeline” across all states nationwide.

Mr. Oluwatoyin Subair, Senior Special Adviser to the President on Special Duties, noted that the project aligns perfectly with President Tinubu’s vision for energy affordability. The move is also expected to create thousands of new employment opportunities within the domestic gas value chain, from refuelling to maintenance and logistics.

The Chief Executive Officer of the Endurance Group, Mr. Eric Lin, confirmed that the SPV would create a commercially viable and resilient national CNG refuelling network, designed to deliver gas from strategically located mother stations into both underserved northern corridors and high-demand southern clusters.