FG Boosts CNG Refuelling Infrastructure With 36 New Stations Across Nigeria
- The NMDPRA has said that the FG has boosted CNG refuelling capacity with the establishment of 36 more stations
- Its CEO, Farouk Ahmed, said the agency will be partnering with state governments to convert up to 100,000 vehicles
- He added that plans are underway to launch the Africa Energy Bank to provide financing for such critical energy infrastructure
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The federal government has achieved a 180% increase in Compressed Natural Gas (CNG) refuelling capacity as part of its broader efforts to enhance CNG infrastructure nationwide.
Farouk Ahmed, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), revealed this development, noting that the number of CNG refuelling stations in the country has risen from 20 to 56.
During the Petroleum Industry Stakeholders’ Forum held in Abuja on Thursday, Ahmed highlighted an impressive 2,500% growth in the country’s CNG conversion capacity in 2024.
Source: Getty Images
He attributed this progress to the establishment of 186 new CNG conversion centres, which have significantly increased the ability to convert vehicles from petrol to CNG, further advancing Nigeria’s transition to cleaner energy.
CNG vehicles on the rise
Ahmed also noted that the number of Nigerian Gas Vehicles (NGVs) now ranges between 30,000 and 50,000, with daily growth reflecting increased adoption, LEADERSHIP news reports.
Over $400 million has been invested into building 86 new "daughter" stations and 65 "mother" stations, thus raising the country’s refuelling capacity from 20 to 56 stations.
Looking ahead, Ahmed shared that the authority plans to further expand CNG infrastructure in major cities such as Lagos and Abuja by 2025.
This initiative aims to convert up to 100,000 vehicles while partnering with state governments to establish natural gas vehicle programs nationwide. Recall that the federal government had launched a loan programme to offer credit for solar energy adoption and car conversions to CNG.
The government also ordered filling stations nationwide to install CNG pumps to give Nigerians easier access to refill their vehicles for as low as N200.
To ensure safety and standardization, Ahmed explained that collaborative efforts between the Petroleum Conversion Nigeria Initiative (PCNGI), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Standards Organisation of Nigeria (SON) have resulted in the development of the Nigeria Gas Vehicle Monitoring System.
Though currently in its pilot phase, this system is slated for a full launch later in 2025.
Africa Energy Bank in the pipeline
While acknowledging challenges in financing critical energy projects, Ahmed announced that NMDPRA is backing the creation of the Africa Energy Bank.
This institution is envisioned as a transformative solution to attract investments for vital infrastructure across the continent.
He stated that Nigeria is on track to become Africa's energy hub, emphasizing the country’s advantage in competitive financing and a favourable regulatory framework.
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NNPC launches new CNG stations
In related news, Legit.ng reported that the NNPCL Retail has launched six new stations across Lagos to provide easy access to Compressed Natural Gas (CNG).
The company also said plans are underway to open more stations in Abuja and other locations across the country.
This is all part of President Bola Tinubu's plans to encourage more Nigerians to switch to CNG instead of petrol, as it is a cheaper alternative.
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Source: Legit.ng
