The Federal Government of Nigeria is pushing forward with plans to establish up to 1,000 additional compressed natural gas (CNG) refuelling stations. This move is aimed at widening access to the fuel and lowering transportation expenses. Ismaeel Ahmed, Executive Chairman of the Presidential Initiative on CNG and Electric Vehicles, outlined the expansion programme at the maiden National CNG Summit in Abuja on Tuesday, 3 November.
According to Ahmed, there are currently 232 CNG facilities nationwide, with 105 operational and another 127 under development. The initiative's website also lists 105 existing refuelling stations. Ahmed mentioned that the government is working towards implementing President Bola Tinubu's directive for 500 additional stations, alongside another 500 to improve nationwide access to CNG.
Nigeria's estimated 215 trillion cubic feet of proven natural gas reserves and a vehicle population of about 12.6 million present significant opportunities for developing the CNG market. However, Ahmed identified gas supply and distribution infrastructure as constraints on the expansion. He called for investment in pipelines, compression facilities, virtual pipeline systems, and the logistics needed to supply stations.
The use of CNG-powered vehicles could ease the burden of transportation costs, which currently account for between 15 and 22 per cent of household expenditure. Abia State Governor Alex Otti emphasized the relationship between vehicle conversion and fuel availability. He noted that affordable prices, accessible stations, and compliance with safety standards would determine motorists' willingness to switch to CNG-powered vehicles.
Governor Otti reported that Abia had introduced 40 electric buses through its Green Shuttle programme and intended to increase the fleet to 100. The state had allocated land at Obuaku City for vehicle manufacturing and assembly facilities, which would have the capacity to produce up to 40,000 vehicles annually, including electric and CNG-powered models.
The proposed facilities in Abia would also support a planned $13.1 million CNG project at the Abia Industrial and Innovation Park, an integrated gas hub for the South-East. Faruk Abdullahi, convener of the summit and National Chairman of the National Compressed Natural Gas Forum (NCNG-F), urged policymakers and investors to assess the programme through its effect on livelihoods.
Abdullahi emphasized that the success of CNG transition should not be measured only by the number of vehicles converted or refueling stations established but by its impact on transportation costs, employment, business growth, and household welfare. He called for investment that would support businesses, create employment, and reduce the cost of moving people and goods.
Key points
- The Nigerian government aims to establish 1,000 additional CNG refuelling stations.
- The use of CNG-powered vehicles could reduce transportation costs, which currently account for 15-22% of household expenditure.
- The programme's success will be measured by its impact on transportation costs, employment, business growth, and household welfare.
