By Wilson Adekumola
The Federal Government has announced plans to roll out 500 Compressed Natural Gas refuelling stations nationwide within the next three years, in a major step toward promoting cleaner and more affordable energy alternatives and reducing reliance on petrol.
According to The PUNCH, the initiative follows the conclusion of negotiations between the Midstream and Downstream Gas Infrastructure Fund and Chinese equipment manufacturer, Endurance Group, on the deployment of large-scale CNG infrastructure.
This was disclosed on Sunday in a statement issued by the MDGIF Executive Director, Oluwole Adama.
The statement stated, “The Midstream and Downstream Gas Infrastructure Fund concludes discussion with leading Chinese Manufacturer Endurance Group to make available 500 CNG refuelling stations across Nigeria for the next three years.”
Adama explained that the discussions paved the way for the creation of a government-backed Special Purpose Vehicle to spearhead the project.
The SPV will be promoted by the MDGIF, the Bank of Industry, Endurance Group, and Séquor Investment Partners.
Named the Compressed Natural Gas Auto Mobility Infrastructure Company, the SPV will, he said, “deploy 500 integrated CNG refuelling stations; develop LCNG gas supply infrastructure; and provide CNG and LNG transportation trucks with truck-mounted cascades, forming a virtual pipeline across all states nationwide.”
Adama further noted that the collaboration, “underscores the parties’ commitment to accelerating Nigeria’s transition to cleaner fuels by addressing infrastructure gaps across the country’s CNG value chain.”
He added that the project would also eliminate the persistent queues currently seen at the few operational CNG stations by widening access and strengthening supply logistics.
This development comes as the Federal Government intensifies efforts to encourage the adoption of gas as a cheaper and cleaner energy alternative, especially after the removal of fuel subsidy and the deregulation of the petroleum downstream sector.
Officials have consistently emphasized that widespread auto-CNG adoption is essential for stabilizing transportation costs, boosting energy security, and reducing demand for foreign exchange used in importing refined fuel products.
Despite possessing over 200 trillion cubic feet of proven natural gas reserves, Nigeria has struggled with inadequate midstream infrastructure, leaving many regions without access to gas-based energy solutions.
The new CNG expansion plan is one of the flagship interventions under the Presidential Compressed Natural Gas Initiative, launched in 2023 to reduce dependence on petrol and diesel.
Commenting on the project, the Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, said the CAM InfraCo initiative aligns directly with President Bola Tinubu’s broader energy security objectives.
According to him, it will expand nationwide CNG adoption, complement ongoing economic reforms, and generate employment across the domestic gas industry.
The CEO of Endurance Group, Eric Lin, said the SPV is designed to build a nationwide network of refuelling, maintenance and logistics services by leasing CNG equipment to certified operators and sustaining gas supply through a reliable virtual pipeline.
“CAM InfraCo’s leasing and logistics strategy is designed to create a commercially viable and resilient national CNG refuelling network,” he stated.
Lin added that the distribution framework will transport gas from strategically placed mother stations into underserved northern routes and high-demand southern centres, using existing hubs and planned infrastructure to ensure long-term, cost-effective expansion.
When fully executed, the initiative is expected to significantly broaden access to gas-powered mobility, cut dependence on imported fossil fuels, and strengthen Nigeria’s transition to cleaner, more sustainable energy sources.
