Nigeria Converts 50,000 Vehicles to CNG as Investments Surpass $500 Million

The Presidential Compressed Natural Gas Initiative (PCNGI) says Nigeria’s shift to alternative transportation fuels has already yielded over $500 million in investments and seen more than 50,000 vehicles converted to run on compressed natural gas (CNG) within just one year.

Responding to reports of a sluggish rollout, PCNGI Programme Director and CEO Michael Oluwagbemi dismissed the claims as “alarmist” and said they do not reflect the pace of progress achieved since the initiative launched in May 2024 under President Bola Tinubu’s administration.

According to Oluwagbemi, the programme has created over 10,000 direct jobs and established 255 vehicle conversion centres and 53 CNG dispensing stations across the country so far.

“We note the latest alarmist headlines on the fate of the thriving CNG sector by a sceptical section of the media. But such narratives ignore the incredible progress made in just seven months,” the statement read.

Programme Director and CEO of the Presidential Compressed Natural Gas Initiative (PCNGI), Michael Oluwagbemi, says Nigeria’s adoption of compressed natural gas (CNG) has seen a remarkable turnaround since the initiative officially launched in May 2024.

Speaking on Monday, Oluwagbemi explained that the initiative was designed to accelerate the use of CNG and electric vehicles, encourage private investment in alternative transport energy, and coordinate regulatory frameworks to support growth.

He noted that before the programme’s rollout, Nigeria had just 11 operational CNG stations—remnants of a 2017 pilot by the NNPC—and public awareness of CNG was limited. However, within a year, the number of stations has grown to 53, accompanied by 255 vehicle conversion centres and over 50,000 vehicles retrofitted to run on CNG.

Oluwagbemi stressed that public perception has shifted significantly, and the market is now seeing strong momentum.

“From May 2024, the PCNGI set out to implement its mandate in line with the directive and vision of Mr President, which was to: Incentive the adoption of CNG and EV vehicles to ensure sustainable transportation for all Nigerians, facilitate investments into the alternative energy sector for transportation and coordinate regulation of the emerging sector for rapid growth.

“Because the initial desire of the President was greeted with scepticism, the start-up work of the PCNGI was to embark on an intensive awareness campaign which was conducted from May to October 2024; hardly any CNG vehicles were on our roads and no demand at the few eleven CNG stations nationwide since a 2017 pilot by NNPCL,” he stated.

Michael Oluwagbemi, Chief Executive of the Presidential Compressed Natural Gas Initiative (PCNGI), says Nigeria’s CNG programme has defied early skepticism and misinformation to achieve major milestones within a year of launch.

He noted that even committed stakeholders were unsure Nigerians would embrace CNG, as the market was clouded by fake news and public doubt. However, within 12 months, the sector has attracted over $500 million in investment, created more than 10,000 direct jobs, and established 255 new vehicle conversion centres and 53 CNG dispensing stations.

“One year out, we are pleased that even the doubting Thomases are singing a new tune. With over 50,000 vehicles and rising to 100,000, the queues at CNG stations are naturally going to rise because of such an unprecedented increase (from a mere 4,000) in vehicle count as a result of massive incentives provided by the administration and the breakthrough in awareness due to the economic benefits of the switch.

“Nigerians love CNG, and the programme is working. With over 50,000 converted vehicles on Nigerian roads, and projections to hit 100,000 soon, it is expected that CNG station queues will grow due to the unprecedented rise in demand,”  Oluwagbemi stated.

Nigeria’s Compressed Natural Gas (CNG) drive is accelerating, with the Nigerian National Petroleum Company Limited (NNPCL) expanding its footprint from 12 to 20 operational stations and planning 40 more in its next rollout phase. Bovas is also set to launch two modern stations in Ibadan, while NIPCO is adding eight new facilities to its existing 23.

The sector received a further boost as the Midstream and Downstream Gas Infrastructure Fund awarded equity investments to 10 new developers—three of which are dedicated to building additional CNG stations. This comes on top of the N123 billion invested last year.

Despite the visible momentum, PCNGI boss Michael Oluwagbemi urged Nigerians to remain patient, noting, “It took 70 years to get hooked on petrol and diesel—we can’t expect a full transition in just seven months.”

He dismissed recent reports suggesting slow progress, pointing instead to steep reductions in fuel costs—up to 90% in some cases—and growing demand for bi-fuel vehicles. “We doubt anyone would switch back to petrol only,” he said.

Oluwagbemi reaffirmed that the government remains committed to delivering on President Tinubu’s clean energy promise, with efforts spanning the entire CNG value chain.

“Nigeria is making progress with respect to CNG infrastructure but engineering feats take time. It took over seventy years to get addicted to petrol and diesel, it will take more than seven months to be weaned off the addiction,” he stated.