Nigeria Attracts $791 Million CNG Investment in Two Months as Clean Transport Shift Accelerates

Nigeria’s transition to cleaner transport energy has gained fresh momentum with over $791 million in private sector investments pouring into the country’s Compressed Natural Gas (CNG) ecosystem between May and June 2025 alone. This surge, announced by the Presidential Compressed Natural Gas Initiative (PCNGI), reflects growing investor confidence in the nation’s clean mobility agenda.

According to documents obtained by The Punch, the recent wave of investment brings total mobilised funding under the initiative to over $980 million within the last 12 months — a significant milestone for the government-backed shift to cleaner fuels.

“This sharp rise in investment is a direct result of renewed investor confidence, stronger policy direction, and proof of concept seen in the ongoing nationwide deployment,” said the PCNGI Secretariat.

The initiative has made notable strides in its rollout, including:

• Conversion of over 1,440 vehicles across 20 states

• Procurement of 807 CNG-powered buses and 5,000 tricycles

• Deployment of over 100,000 CNG kits

• Establishment of 65 mother refuelling stations and 300 conversion centres, with 260 more in the pipeline

• Construction of 175 daughter stations, 30 of which are now operational

By 2027, the PCNGI targets one million vehicle conversions, 250,000 bi-fuel vehicle deployments, and the training of 25,000 autogas technicians. So far, more than 5,500 technicians have been trained.

The federal government is betting big on CNG to cut transport costs and reduce reliance on petrol subsidies, which amounted to approximately ₦1 trillion in 2023. Despite producing 1.2 million barrels of crude oil daily, Nigeria still imports over 75 million litres of petrol each day.

“We are sitting on a wealth of natural gas that must be harnessed for sustainable mobility,” the Secretariat emphasized, pointing to the environmental and economic dividends of the transition.

In terms of supply chain readiness, 17,346 of the 23,845 CNG kits ordered in 2023 have already been delivered, with 16,672 deployed. For 2024, an additional 27,100 kits and 53,000 cylinders are stocked in supplier warehouses, with 125,000 conversions targeted this year alone.

The initiative also received 5,213 tricycles, 531 CNG buses, and 40 electric buses, all geared towards reducing emissions and lowering transport costs for everyday Nigerians.

PCNGI forecasts that full implementation could cut carbon dioxide emissions by 57% and save motorists more than ₦500 billion annually in fuel costs. The program is supported by a network of public-private partners, including state governments, NIPCO Gas, the Ministry of Finance, and global tech firms.

To encourage adoption, five incentive programs — including fare reductions and consumer subsidies — have been introduced. National standards for engine compatibility and conversion safety have been developed in partnership with the Standards Organisation of Nigeria. A Gas Vehicle Monitoring System is also underway to ensure compliance and efficiency.

Despite ongoing challenges around infrastructure and gas supply, the PCNGI remains optimistic, citing improved planning, clear policy frameworks, and swift interventions as key to de-risking early phases of the program.

Nigeria hopes to mirror successes in countries like China, Iran, and India, transforming its abundant natural gas reserves into a catalyst for a cleaner, more cost-efficient transport future.