Nigeria's CNG Station Rollout Delayed Despite $2bn Investment

The rollout of Compressed Natural Gas (CNG) stations in Nigeria is falling short of the 2025 target despite a significant investment of $2 billion. The initiative, part of the government's response to the removal of petrol subsidies, aims to establish 500 conversion centers and 150 CNG retail outlets by the end of 2025.

However, as of January 2025, only 300 conversion centers and 40 refueling stations have been built, indicating a substantial gap in project coverage. Engr. Michael Oluwagbemi, the program director of PICNG, announced plans for these developments, but data confirming progress remains limited.

The federal government has allocated substantial funds for infrastructure buildout, including N100 billion for late 2023, N130 billion for 2024, and N225 billion for 2025. Challenges such as delays in equipment importation, limited local manufacturing capacity, and regulatory approval timelines have hindered the rollout.

The initiative is crucial for reducing transport fuel costs and promoting domestic gas utilization.