Nigeria’s CNG Ambition At A Crossroads: Funding Secured, Infrastructure Lagging

Nigeria’s CNG Ambition At A Crossroads: Funding Secured, Infrastructure Lagging

Despite securing more than $2 billion in private sector investment commitments within just over two years, Nigeria’s push toward nationwide Compressed Natural Gas (CNG) adoption is falling short of its 2025 infrastructure targets. While policy momentum and funding signals remain strong, the pace of on-the-ground delivery tells a more complicated story.

 

At the centre of this transition is the Presidential CNG Initiative (PiCNG), launched in 2023 as a strategic response to the removal of petrol subsidies. Positioned as both an economic relief mechanism and a long-term energy transition framework, the programme was designed to accelerate gas-powered mobility across Nigeria.

 

Two years later, the question is no longer about investment commitments — it is about implementation.

 

Big Targets, Limited Transparency

At a January 30, 2025, ceremony in Kogi State, the Programme Director of PiCNG, Engr. Michael Oluwagbemi announced plans to roll out at least 500 vehicle conversion centres and more than 150 CNG retail outlets by the end of 2025. However, checks conducted by Nairametrics reveal a significant gap between projections and verifiable progress. According to figures available on the initiative’s website, more than 300 conversion centres and over 40 refuelling stations have been built since 2023. Yet, there is no year-by-year breakdown clarifying how many of those facilities were delivered in 2025 alone.

 

As of January 2025, when the ambitious year-end projection was announced, Nigeria reportedly had about 50 CNG refuelling stations and 193 conversion centres nationwide. That baseline suggested that substantial acceleration would be required to meet the stated targets.

 

Instead, clear and updated performance data remains elusive.

 

Accountability Questions and Institutional Deflection

Attempts to obtain detailed breakdowns of progress have reportedly been redirected between agencies.

Officials within the PiCNG office referred inquiries to the Federal Ministry of Finance and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Meanwhile, advisers within the Ministry of Finance indicated that the CNG initiative office itself should provide the data, with internal sources suggesting that references to the Ministry of Finance may amount to deflection.

 

As of the time of reporting, public clarification from the regulatory authority had not been secured. The lack of transparent milestone reporting is increasingly becoming a focal concern for analysts and industry observers. With billions committed and multiple budgetary allocations approved, stakeholders argue that measurable infrastructure delivery, not funding announcements, must now define performance.

 

Strong Funding, Slower Rollout

On paper, the numbers are impressive.

 

Over $2 billion in private investment commitments already secured

Projected to reach $5 billion by 2027

N100 billion approved in late 2023

N130 billion allocated in the 2024 budget

N225 billion in the 2025 budget cycle

 

The initiative was also projected to generate thousands of direct and indirect jobs across vehicle conversion services, cylinder manufacturing, logistics, and retail infrastructure development. Yet stakeholders say visible deployment of refuelling stations remains concentrated along pilot corridors and select urban centres, limiting true nationwide access.

 

For commercial transport operators, the core target market for rapid adoption of infrastructure gaps presents practical risks.

Drivers cannot afford to be stranded.

Fleet operators note that while some vehicles have been converted, route planning remains complicated due to inconsistent refuelling access outside major cities. Without predictable station coverage across states, large-scale fleet migration remains constrained.

 

Structural Bottlenecks

Industry operators cite several constraints slowing deployment:

 

Delays in importing specialised equipment

Limited local manufacturing capacity for CNG cylinders and conversion kits

Regulatory approval timelines

Logistics and supply chain challenges

Uneven coordination at state level

Financing gaps for smaller conversion centres

 

While none of these challenges are insurmountable, collectively they create friction in what was intended to be an accelerated national rollout.

 

Why It Matters

The CNG initiative is central to the Federal Government’s broader strategy to reduce transport fuel costs, ease pressure on foreign exchange reserves, and shift demand toward domestically available natural gas.

Following subsidy removal in May 2023, petrol prices surged, and transport costs climbed sharply across Nigeria. CNG was positioned as both a cheaper and cleaner alternative, particularly for mass transit operators, commercial fleets, and private motorists.

If effectively executed, the initiative could:

 

Lower nationwide transport costs

Reduce reliance on imported petrol

Deepen domestic gas utilisation

Strengthen energy security

Create jobs across the gas value chain

 

However, adoption remains uneven because infrastructure, the backbone of any fuel transition, has not scaled as rapidly as projected.

From Investment Headlines to Delivery Metrics

Energy analysts note that the conversation is shifting.

Securing investment commitments is important. Passing budget allocations is necessary. But neither automatically translates to operational refuelling stations accessible across Nigeria’s highways and urban centres. With 2025 now concluded, performance assessment hinges on infrastructure delivery, geographic coverage, and transparency in reporting. Nigeria’s CNG transition is not necessarily failing, but it is at a critical inflection point. The ambition is clear. The funding appears substantial. The policy framework exists. The missing link is execution speed, coordinated accountability, and consistent public reporting of milestones. If the government can close that gap, CNG may yet become the cornerstone of Nigeria’s transport energy transition. If not, strong investment figures may remain headlines without delivering the nationwide cost relief and structural reform they were meant to achieve.

 

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Source: NairaMetrics

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