FG Secures $2bn CNG Investment as 120,000 Vehicles Switch to Cheaper Fuel
- Nigeria secures over $2 billion investment to develop Compressed Natural Gas infrastructure
- More than 120,000 vehicles converted to CNG, boosting transportation options
- Government targets 1,000 CNG stations to offer cheaper transport solutions
PAY ATTENTION: Find it fast with our new search feature at Legit.ng!
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Federal Government has announced that more than $2 billion in private-sector investment has been secured to develop Nigeria’s Compressed Natural Gas (CNG) infrastructure and expand the wider gas value chain.
The investment comes as the government intensifies efforts to make CNG a cheaper alternative to conventional transport fuels and reduce transportation costs for Nigerians.
Source: Twitter
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed the development in a statement issued on Tuesday by his spokesman, Louis Ibah.
Over 120,000 vehicles converted to CNG
According to Ekpo, more than 120,000 vehicles have already been converted to CNG since the launch of the Presidential Initiative on CNG in 2023.
He said the programme has also supported the establishment of more than 400 certified vehicle conversion centres and over 90 CNG refuelling stations across the country.
The minister said the private-sector investment has helped accelerate the expansion of refuelling infrastructure, vehicle conversion facilities, technical skills and other components needed to build a nationwide CNG ecosystem.
The programme has also trained more than 7,700 automotive technicians and created over 10,000 direct and indirect jobs, according to the minister.
655 buses, 5,123 tricycles deployed
The government has also deployed 655 CNG-powered buses and 5,123 CNG tricycles as part of efforts to expand access to cheaper transportation.
Ekpo said thousands of privately converted vehicles are also operating across Nigeria’s commercial and public transportation networks.
He described the growing adoption of CNG as evidence that the fuel is moving beyond being a future alternative and is becoming an increasingly viable option for motorists and transport operators.
Commercial transport operators, private vehicle owners and fleet managers, he said, are already reporting fuel-cost savings and improved profitability.
Government targets 1,000 CNG stations
The Federal Government is now targeting a much larger CNG network.
Ekpo commended President Bola Tinubu’s directive for the development of an additional 500 CNG refuelling stations, which would increase the planned national network to 1,000 stations.
The government said the expansion would make CNG more accessible and encourage more Nigerians to convert their vehicles.
The ministry is working with the Presidential Initiative on CNG, the Midstream and Downstream Gas Infrastructure Fund, state governments, transport unions, investors and other stakeholders to develop dedicated CNG corridors and extend infrastructure to underserved communities.
Cheaper transport remains the bigger goal
Beyond increasing the number of CNG vehicles and stations, the government said its broader objective is to ensure that lower fuel costs translate into cheaper transportation and logistics.
Ekpo said savings from CNG should help reduce the cost of commuting, improve business profitability, ease pressure on household budgets and boost economic productivity.
Source: UGC
The minister also urged state governments yet to embrace the initiative to partner with investors and other stakeholders.
He assured Nigerians that the Federal Government would continue supporting private investment, expanding CNG infrastructure and deepening domestic gas utilisation to ensure that the benefits of the programme reach communities across the country.
Tinubu orders cheaper transport nationwide
Legit.ng earlier reported that Nigerians could soon get some relief from soaring transportation costs as President Bola Tinubu has directed the Federal and state governments to work together to reduce public transport fares nationwide.
The President said Nigerians should begin to feel the impact of cheaper transportation from October 1, 2026, as governments move to pass the savings from Compressed Natural Gas (CNG) and electric vehicles to commuters.
Source: Legit.ng
