By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPC) has acquired equipment to establish an additional 40 Compressed Natural Gas (CNG) stations nationwide, as part of efforts to expand access to alternative fuel. The Federal Government also plans to have 100 CNG stations operational within the next six months.
Oluwagbemi Michael, the Programme Director and CEO of the Presidential Compressed Natural Gas Initiative (PCNGI), disclosed this during an event in Ogun State. He noted that NNPC has already set up 12 CNG centres in the past year, with six located in Abuja and six in Lagos.
His remarks come amid growing concerns from Nigerians about the limited availability of CNG stations, which has hampered the adoption of CNG as a viable alternative to petrol. Michael explained that the government is actively working to address this issue through an infrastructure development programme in partnership with the Midstream and Downstream Gas Infrastructure Fund.
“Two weeks ago, about N122 billion was released to six private organisations investing in the CNG distribution value chain. This is part of efforts to ensure sufficient CNG distribution infrastructure across the country,” Michael said.
He added that while infrastructure development takes time due to the need for proper planning, design, procurement, and installation, progress is being made. NNPC, he noted, has acquired equipment for 40 additional sites across Nigeria.
Private companies are also contributing to the CNG sector. Michael revealed that Bovas is developing eight CNG stations, NIPCO is adding 12 more to its existing 10, and other firms such as Matrix and MRS are also making significant investments.
“When we began this programme last year, there were just 13 to 20 refuelling stations nationwide. Today, that number has risen to 50, and we expect it to double within the next six months,” Michael stated.
He also highlighted the government’s initiative to distribute one million CNG conversion kits to commercial drivers, which is projected to create 1.5 million additional CNG demands nationwide. A credit scheme has been established to assist private individuals in converting their vehicles to CNG, further boosting investor interest.
Regarding the possibility of converting existing petrol stations into CNG refuelling stations, Michael confirmed that NNPC is working on 40 such conversions, expected to be operational by next year. He explained that the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) is fast-tracking the permitting process for these conversions.
Addressing concerns about the cost of converting vehicles to CNG, Michael assured that a credit scheme has been put in place, allowing car owners to convert their vehicles and pay the conversion costs over time. He suggested that the potential savings from switching to CNG would make this a financially viable option for many Nigerians.
The PCNGI CEO expressed confidence that CNG stations would soon reach every corner of Nigeria, emphasizing that CNG is a safer and cheaper alternative to petrol.
This comes as NMDPRA Chief Executive, Farouk Ahmed, recently raised concerns that only 50 CNG stations are currently serving Nigeria’s 200 million people. However, Michael reassured Nigerians that efforts are underway to significantly expand CNG infrastructure across the country.
