By David Akinmola
Despite securing more than $2 billion in private sector investments in over two years, the Federal Government is still falling short of its 2025 nationwide Compressed Natural Gas (CNG) infrastructure targets, raising fresh concerns about implementation gaps.
This is according to checks and inquiries conducted across key government agencies and industry stakeholders.
While funding inflows and policy backing remain strong, on-the-ground delivery of refuelling stations and nationwide access appears slower than earlier projections.
The Presidential CNG Initiative (PiCNG) was introduced in 2023 as a core energy-transition response to petrol subsidy removal, with ambitious plans to scale gas-powered mobility nationwide.
However, months after announcing a target of 500 conversion centres and over 150 CNG retail outlets by the end of 2025, clear data confirming progress toward that benchmark remains limited. Attention is now shifting from headline investment figures to measurable infrastructure outcomes.
What they are saying
At a January 30, 2025 ceremony for five mini-liquefied natural gas plants in Kogi State, Programme Director of PiCNG, Engr. Michael Oluwagbemi announced plans to have at least 500 conversion centres and over 150 CNG retail outlets by year-end.
Checks on the initiative’s website indicate that more than 300 conversion centres and over 40 refuelling stations have been built since 2023, but there is no year-by-year breakdown showing how many were actually delivered in 2025.
This medium requests for detailed performance data were redirected between agencies.
Lara Obileye, the Sales, Business Development and Strategy Manager for the PiCNG said she could not provide updated figures and referred inquiries to the Federal Ministry of Finance and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
Dr. Ogho Okiti, Special Adviser to the Minister of Finance, said the CNG initiative office should provide the relevant details.
He said, “I think those who received the money should be able to tell you what they received.”
A source at the Federal Ministry of Finance described the ministry’s mention as a possible deflection of responsibility. He said, “mentioning Ministry of Finance is a deflection.”
Efforts to obtain comments from the NMDPRA spokesperson George Eno-Ita were unsuccessful as of the time of filing this report.
As of January 2025, when the announcement was made, there were about 50 CNG refuelling stations and 193 conversion centres across Nigeria, demonstrating a significant gap between projections and current coverage.
Backstory
PiCNG was launched in the aftermath of petrol subsidy removal in May 2023, when pump prices surged, and transport costs climbed sharply nationwide. The programme was positioned as both a cost-relief measure and a long-term energy transition strategy aimed at deepening domestic gas utilisation.
Programme projections indicate more than $2 billion in private investment commitments have already been secured, with expectations of reaching $5 billion by 2027.
The initiative is projected to generate thousands of direct and indirect jobs across vehicle conversion, cylinder manufacturing, station development, and logistics.
Government allocations have included N100 billion approved in late 2023, N130 billion in the 2024 budget, and N225 billion in the 2025 budget cycle to support infrastructure buildout and conversion incentives.
Despite these commitments and funding allocations, stakeholders say most operational stations remain concentrated along pilot corridors and select urban centres, limiting nationwide accessibility.
More Insights
Industry stakeholders say visible infrastructure rollout has lagged behind official projections, particularly in refuelling station deployment and nationwide coverage.
“Our members like the idea of cheaper fuel, but drivers cannot risk being stranded,” said Audu Maiturare of the National Union of Road Transport Workers in Nyanya.
“If stations are only available in a few corridors, nationwide adoption will be slow. Infrastructure must come first before enforcement or pressure to convert.”
“Some of our vehicles have been converted, but route planning has become more complicated,” added Ben Ngilari, an Abuja-based commercial transporter.
“Until refuelling points are reliably available across states, large fleet migration will remain limited,” he added.
Sector operators also cite bottlenecks, including delays in equipment importation, limited local manufacturing capacity for cylinders and conversion kits, regulatory approval timelines, logistics constraints, uneven state-level coordination, and limited financing access for small conversion centres, all of which have slowed deployment.
What you should know
The CNG initiative is central to the Federal Government’s broader strategy to reduce transport fuel costs and ease pressure on foreign exchange by shifting demand toward domestically available natural gas.
Policymakers positioned CNG as a cheaper and cleaner alternative for mass transit operators, commercial fleets, and private motorists following fuel price deregulation.
The programme aims to lower transport costs nationwide and reduce reliance on imported petrol.
It is expected to deepen domestic gas utilisation and support job creation across the gas value chain.
Adoption remains uneven due to limited refuelling access outside major cities.
With 2025 now over, infrastructure delivery rather than funding announcements is becoming the key performance metric.
Energy analysts note that while investment commitments are strong, execution speed and transparent milestone reporting will ultimately determine whether the initiative achieves its cost-reduction and energy-transition objectives.
