FG Announces New Deal For Nigerians to Refuel Cars for N380 Only
- The Federal Government plans to build 500 CNG refuelling stations nationwide within three years
- The move will further expand access to cheaper, cleaner fuel for Nigerians already facing financial pressure
- The NNPC currently sells CNG at N380/SCM, and NIPCO and other filling stations charge similar rates
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The Federal Government plans to establish 500 Compressed Natural Gas (CNG) refuelling stations across Nigeria within the next three years.
The move is aimed at expanding access to cheaper, cleaner energy and reducing dependence on petrol.
Source: Getty Images
Agreement for cheaper petrol alternative
A statement released by MDGIF Executive Director, Oluwole Adam noted that the project follows the conclusion of discussions between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and Chinese equipment manufacturer Endurance Group.
Adam said the talks produced an agreement to set up a government-backed Special Purpose Vehicle involving the MDGIF, Bank of Industry, Endurance Group, and Séquor Investment Partners.
The new entity to be known as Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo) will oversee the rollout.
He explained that CAM InfraCo will develop 500 integrated refuelling stations, build LCNG supply facilities and deploy CNG and LNG transportation trucks with mounted cascades to create a virtual pipeline that reaches all states.
Part of the statement reads:
"“The Midstream and Downstream Gas Infrastructure Fund concludes discussion with leading Chinese Manufacturer Endurance Group to make available 500 CNG refuelling stations across Nigeria for the next three years.”
Importance of the agreement
According to Adam, the partnership aims to close long-standing infrastructure gaps in Nigeria’s CNG value chain and ease the pressure currently seen at the limited number of operational CNG stations, Punch reports.
He added that the initiative forms part of Tinubu administration’s broader strategy to promote gas as a more affordable alternative to petrol following the removal of fuel subsidy and the deregulation of the downstream sector.
Stressing that CNG expansion programme is also a key component of the Presidential CNG Initiative launched in 2023.
Source: Getty Images
Also speaking, Senior Special Adviser to the President on Special Duties and Domestic Affairs, Oluwatoyin Subair, said the project aligns with President Bola Tinubu’s energy security agenda and supports ongoing economic reforms.
He added that it would deepen the use of gas-powered vehicles nationwide and create jobs across the gas value chain.
Endurance Group CEO, Eric Lin, said the SPV will focus on building a nationwide network for CNG refuelling, maintenance and logistics.
He noted that the company plans to lease CNG equipment to certified station operators and ensure stable gas supply through a virtual pipeline system.
Lin added that the distribution model will move gas from mother stations to underserved northern routes and high-demand southern corridors, using existing hubs and new infrastructure to drive sustainable expansion.
NNPC's new fuel price
Earlier, Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPCL) retail outlets have adjusted the pump price of petrol.
A review of NNPC's current prices across Nigeria shows that the highest pump price is in Gombe, followed by Akwa Ibom, with N965 and N955 per litre, respectively.
Despite the adjustments, Nigerians are still paying more for petrol at NNPC retail outlets compared to Dangote Refinery’s partner stations.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
