The Federal Government says it plans to establish up to 1,000 additional Compressed Natural Gas (CNG) stations nationwide to accelerate the adoption of the alternative fuel and reduce transport costs.
The Executive Chairman of the Presidential Initiative on CNG and Electric Vehicles, Mr Ahmad Ismael, disclosed this at the inaugural National CNG Summit in Abuja on Wednesday.
Ismael said Nigeria had 105 operational CNG stations, while another 127 were at various stages of completion, bringing the total number of existing and planned facilities to 232.
“The government is working to implement President Bola Tinubu’s directive for 500 additional stations, alongside another 500 subsequently announced to improve nationwide access to CNG.
“Nigeria’s estimated 215 trillion cubic feet of proven natural gas reserves and vehicle population of about 12.6 million present significant opportunities for developing the CNG market,” he said.
He said transport accounted for between 15 and 22 per cent of household expenditure, noting that switching to CNG-powered vehicles could help reduce the financial burden on households.
He identified inadequate infrastructure, gas supply networks and transport logistics as major constraints, stressing the need for investment in pipelines, compression facilities and virtual pipelines.
The convener of the National Compressed Natural Gas Forum (NCNG-F), Mr Frank Abdullahi, urged the government and private sector to turn Nigeria’s abundant gas resources into economic opportunities through affordable energy, job creation and industrial development.
Delivering the keynote address, Abdullahi described Nigeria’s situation as a paradox, saying the country’s vast gas reserves had yet to translate into affordable energy, industrial competitiveness and improved livelihoods.
“The success of the CNG transition should not be measured only by the number of vehicles converted or refuelling stations established, but by its impact on transport costs, employment, business growth and household welfare.
“Behind every energy policy is a human story. When we discuss CNG, we are discussing the commercial driver whose daily earnings are consumed by the cost of fuel.
“We are talking about the trader whose transport expenses influence the price of goods and the farmer whose produce must travel long distances to reach the market,” he said.
Abdullahi commended Tinubu for introducing the Presidential Initiative on CNG and Electric Vehicles but urged the government to move beyond its initial intervention and build a self-sustaining industry driven by private investment.
He identified high vehicle conversion costs, limited access to credit, inadequate infrastructure, gas availability, regulatory uncertainty, technical standards and public awareness as challenges requiring urgent attention.
He also called for certified equipment, accredited conversion centres and trained technicians to guarantee safety and build public confidence.
Abia Governor Alex Otti, represented by his Senior Special Assistant on National Assembly Matters, Mr Emenike Onyembi, said successful CNG adoption required affordable pricing, accessible refuelling infrastructure and strict safety standards.
Otti said motorists would be reluctant to convert their vehicles without accessible refuelling stations, while investors would be discouraged from establishing stations without sufficient patronage.
He said Abia had introduced 40 electric buses under its Green Shuttle programme, with plans to increase the fleet to 100.
The governor also said the state had provided land at Obuaku City for vehicle manufacturing and assembly facilities, with a proposed capacity of up to 40,000 vehicles annually, including electric and CNG-powered vehicles.
He added that the state had endorsed a proposed $13.1 million CNG project at the Abia Industrial and Innovation Park, which would serve as an integrated hub in the South-East.
