Nigeria has unveiled plans to build 500 new Compressed Natural Gas (CNG) stations across the country, a move aimed at promoting cleaner energy and reducing reliance on petrol (PMS) and diesel (AGO).

The announcement came from the Midstream and Downstream Gas Infrastructure Fund (MDGIF), which will execute the project in partnership with Chinese manufacturer Endurance Group over the next three years.

According to Oluwole Adama, Executive Director of MDGIF, the initiative will involve creating a government-backed special purpose vehicle, supported by MDGIF, the Bank of Industry (BOI), Endurance Group, and Séquor Investment Partners.

“The collaboration underscores our commitment to accelerating Nigeria’s transition to cleaner fuels by addressing infrastructure gaps across the CNG value chain,” Adama said.

Under this plan, the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo) will be set up to:

Deploy 500 integrated CNG refuelling stations nationwide

Develop LCNG gas supply infrastructure

Provide CNG and LNG transportation trucks with truck-mounted cascades, forming a virtual pipeline across all states

Oluwatoyin Subair, Senior Special Adviser to the President on Special Duties and Domestic Affairs, emphasized that the project aligns with President Bola Tinubu’s vision of ensuring energy security and supporting economic reforms. He noted the initiative would create new jobs in the domestic gas sector while offering Nigerians a cleaner and more affordable fuel alternative.

Meanwhile, Eric Lin, CEO of Endurance Group, explained that the special purpose vehicle aims to establish a nationwide CNG refuelling, maintenance, and logistics ecosystem. This includes leasing CNG-related equipment to certified operators and ensuring a consistent gas supply through a world-class virtual pipeline network.

With this ambitious plan, Nigeria is taking a major step toward cleaner, more sustainable energy for its transport sector, while also creating opportunities for domestic gas industry growth.