CNG Adoption Slow in Nigeria as Motorists Decry Shortage of Refuelling Stations
- Motorists say limited CNG refuelling stations are slowing Nigeria’s transition from petrol, despite CNG being significantly cheaper
- Drivers in Lagos and on the Lagos–Ibadan expressway complain of long queues that affect their income and daily operations
- Industry analysts warn that infrastructure gaps, high conversion costs, and pricing challenges remain major obstacles to wider CNG adoption
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, tech and macroeconomic trends in Nigeria.
Nigeria’s transition from petrol to Compressed Natural Gas (CNG) is gaining momentum after the removal of fuel subsidies, but many motorists say the pace of progress is being slowed by the limited number of refuelling stations across the country.
Although CNG currently costs about 74% less than petrol as of April 2025, motorists report long queues and extended waiting hours due to the shortage of stations. Many say this is affecting productivity and discouraging wider adoption of the cheaper alternative.
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According to new data from the Presidential Initiative on CNG (Pi-CNG), the federal programme launched in 2023 to expand the use of CNG and electric vehicles, Nigeria currently has 68 auto gas stations and 369 conversion centres.
Another 150 stations are under construction, alongside 27 Mother Stations expected to boost supply, The Sun reported.
Source: Getty Images
Despite these efforts, stakeholders note that the current number is still small for a country of more than 210 million people who rely heavily on road transport.
In 2024, the Nigerian National Petroleum Company Limited (NNPC Ltd) and NIPCO Gas commissioned 12 new CNG stations in Abuja and Lagos.
However, the number remains insufficient compared to the growing population of vehicles running on CNG.
The Abuja stations are located on Airport Road, Kubwa, Gaduwa, Olusegun Obasanjo Way Zone 1, Dei-Dei Junction, Duste–Bwari Road, and Gwagwalada.
In Lagos, stations were opened in Lateef Jakande, Agidingbi, Agege Motor Road, Mushin, Lekki–Epe Expressway, Sangotedo, Eti-Osa LGA, and Mobile Road, Apapa.
Less than 1% conversion achieved
Pi-CNG figures show that more than 100,000 vehicles had been converted to CNG by mid-2025, representing less than 1% of the country’s total vehicle population.
The programme is targeting one million conversions before 2027, supported by the ongoing expansion of conversion centres and new refuelling sites.
So far, the initiative has recorded the deployment of 4,613 tricycles, 16,000 trucks, including 4,000 belonging to Dangote Group, and 547 buses.
However, many motorists told Legit.ng that inadequate infrastructure is slowing their daily operations.
At the Mobil CNG station in Agidingbi, Ikeja, visited by The Sun, several commercial drivers complained of long queues, especially during peak hours.
A tricycle operator, Mr Jude Okon, told The Sun that he spends an average of three hours in line each time he needs to refuel. He explained that many operators work on hire-purchase arrangements, and the lost hours affect their weekly repayment and daily income.
He said:
“Sometimes, you can lose up to six hours in a week just waiting to get CNG. We are urging the Federal Government and private investors to increase the number of stations so that public transport can run more smoothly.”
Another commercial driver, Mr Adio Sumonu, who operates on the Lagos–Ibadan route, said the entire expressway has only one CNG station.
He argued that the queues at the station often stretch several metres, reducing the number of trips operators can make in a day.
Industry analysts highlight infrastructure constraints
In its 2025 CNG Industry Report, Augusto & Co noted that coverage remains particularly low in the northern and south-eastern regions due to limited pipeline networks and high distribution costs.
The report also cited concerns such as high conversion fees, low consumer awareness, and misconceptions about safety.
The rating agency added that exchange rate volatility has complicated pricing and investment, as feed gas is denominated in dollars while payments are made in naira.
Despite these issues, Augusto & Co said the sector’s medium-term outlook is positive, backed by government targets and new investments.
It referenced the N122 billion approved under the Midstream and Downstream Gas Infrastructure Fund (MDGIF) in late 2024, along with expansion efforts by operators such as NIPCO Gas, Powergas Global, and BOVAS Group, which are increasing their presence in compression, distribution, and vehicle conversion.
Source: Getty Images
Government excludes CNG, others from 5% fuel surcharge
Legit.ng earlier reported that CNG was not part of the essential household energy products a proposed 5% fuel surcharge applies.
A task reform committee by President Bola Tinubu disclosed that the levy is intended to create a dedicated fund for road infrastructure and maintenance.
The committee also added that the measure does not contradict the government’s tax relief efforts, noting that several other charges have already been scrapped or suspended.
Source: Legit.ng
