FG Targets 500 More CNG Stations as Nigeria Expands Alternative Fuel Programme

The Federal Government has announced plans to expand Nigeria’s Compressed Natural Gas (CNG) infrastructure, with another 500 facilities expected to support the country’s transition towards cheaper alternative transportation fuel.

The Executive Chairman of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, Ismaeel Ahmed, disclosed this on Friday during the commissioning of a CNG integrated refuelling facility in Karu, Abuja.

According to Ahmed, Nigeria currently has approximately 160 operational CNG refuelling stations, while another 170 facilities are undergoing development or awaiting regulatory approval.

He disclosed that private investors had committed approximately $2.6 billion to developing CNG infrastructure across the country.

Ahmed explained that President Bola Tinubu had directed another round of infrastructure expansion to improve access to CNG and encourage more Nigerians to adopt alternative fuel.

He also revealed that CNG-powered buses had helped reduce transportation fares by between 30 and 40 per cent on some routes where they operate.

He cited examples in Abuja, Lagos and Kano, including the Kano-Katsina route, where passengers who previously paid between ₦3,000 and ₦4,000 could now travel for approximately ₦1,500 using CNG-powered buses.

The initiative is part of the Federal Government’s efforts to reduce transportation costs following the removal of petrol subsidy in 2023.

However, the expansion still faces challenges, including inadequate refuelling infrastructure, conversion costs and the need for sufficient gas supply.

The government is encouraging private investors to participate in the programme to make CNG more accessible to commercial drivers and ordinary Nigerians.

If successfully implemented, the expansion could create business opportunities, support employment and provide commuters with more affordable transportation options.

Source: The Punch Newspapers, November 7, 2026.

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