The Federal Government has announced plans to build 500 Compressed Natural Gas refuelling stations across all states within the next three years, a move expected to ease pressure on petrol consumption and support the country’s switch to cleaner and cheaper energy sources. The announcement follows the conclusion of talks between the Midstream and Downstream Gas Infrastructure Fund and the Chinese manufacturer, Endurance Group, on a large-scale rollout of CNG infrastructure.
Key figures from the MDGIF, Bank of Industry, Endurance Group and Séquor Investment Partners met in Abuja and agreed to set up a Special Purpose Vehicle that will oversee the delivery of the project. The Executive Director of the MDGIF, Oluwole Adama, said the new entity, named Compressed Natural Gas Auto Mobility Infrastructure Company, will coordinate the deployment of 500 integrated refuelling stations, along with LCNG supply facilities and a fleet of CNG and LNG transportation trucks to form a virtual pipeline across the country.
Adama explained that the partnership is built around accelerating access to cleaner fuels by filling long-standing gaps in Nigeria’s gas infrastructure. He noted that the expansion will ease the queues witnessed at existing CNG stations and improve distribution to ensure an uninterrupted supply.
The initiative comes as the government intensifies its shift toward gas as a more affordable alternative to petrol and diesel, following subsidy removal and market liberalisation. Officials maintain that a nationwide auto-CNG network is vital to stabilise transport costs, safeguard energy supply and cut the demand for foreign exchange used for fuel imports.
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Although Nigeria holds more than 200 trillion cubic feet of gas reserves, years of weak midstream development have left many regions without reliable access. The CNG programme, launched under the Presidential Compressed Natural Gas Initiative in 2023, is one of the government’s flagship interventions intended to reduce reliance on Premium Motor Spirit and Automotive Gas Oil.
The Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, said the CAM InfraCo project aligns with President Bola Tinubu’s energy security goals. According to him, the rollout will widen the use of gas-powered vehicles, support broader economic reforms and create new jobs throughout the domestic gas value chain.
Endurance Group’s Chief Executive Officer, Eric Lin, said the SPV is expected to build a national ecosystem for refuelling, maintenance and logistics. He said the company aims to lease CNG equipment to approved operators while maintaining a steady supply network through virtual pipelines linked to major mother stations. Lin added that the distribution model will support deliveries to underserved northern corridors and high-demand southern routes, using both existing hubs and upcoming infrastructure.
When completed, the project is expected to expand access to gas-powered transport, reduce dependence on imported fuels and strengthen Nigeria’s transition toward cleaner and more affordable energy options.
