Categories: Energy & Infrastructure

Nigeria Sets Sights on 500 CNG Refuelling Stations in Three Years

Nigeria Sets Sights on 500 CNG Refuelling Stations in Three Years

Nigeria Announces Ambitious Plan for 500 CNG Refuelling Stations

Nigeria is positioning itself at the forefront of cleaner transportation as the Midstream and Downstream Gas Infrastructure Fund (MDGIF) advances a bold plan: the establishment of 500 Compressed Natural Gas (CNG) refuelling stations across the country within the next three years. The initiative follows negotiations with Endurance Group, a leading Chinese manufacturer known for its expertise in gas and energy infrastructure. The announcement signals a major push to diversify Nigeria’s energy mix while supporting a shift toward cheaper, cleaner transport fuel.

MDGIF’s leadership disclosed that discussions with Endurance Group have reached a stage where practical steps can be implemented to scale CNG access nationwide. If realized, the project would significantly expand the country’s gas distribution footprint and provide new refuelling opportunities for commercial fleets, trucking operators, and individual motorists seeking alternatives to traditional petroleum products.

Why CNG? Aligning Energy, Environment, and Economy

Compressed Natural Gas offers a range of benefits for Nigeria’s transport sector. CNG typically provides lower fuel costs compared with diesel and petrol, reduces tailpipe emissions, and aligns with Nigeria’s abundant natural gas resources. The MDGIF plan aims to unlock these advantages by creating a dense network of refuelling stations that can support both urban commuting and long-haul logistics. By enabling easier access to CNG, the government hopes to stimulate demand for domestic gas production while reducing import dependence and improving air quality in busy cities.

Strategic Role of MDGIF and Endurance Group

The MDGIF is designed to catalyse midstream and downstream gas infrastructure development. By partnering with Endurance Group, the project leverages proven technology in CNG refuelling, storage, and distribution systems. Endurance Group’s experience in large-scale gas infrastructure projects is expected to accelerate the rollout, ensuring safety, reliability, and compatibility with existing pipelines and gas networks. The collaboration underscores Nigeria’s broader strategy to attract international investors and technology partners to diversify energy supply chains.

Implementation Pathway and Timeline

Officials indicate that the 500-station target will be pursued in phased installments over the next three years. The initial phase will likely focus on major economic corridors and metropolitan hubs with high vehicle density, followed by expansion to peri-urban and rural areas. Technical considerations include ensuring robust supply reliability, proper storage facilities, and adherence to safety standards. Training programs for technicians and safety personnel are expected to accompany infrastructure deployment to maintain high service quality and minimize operational risks.

Impact on Industry and Consumers

For transport operators, the new network promises more predictable access to CNG and potentially lower total cost of ownership over time. Fleet managers could benefit from fuel cost stabilization, while small business owners and independent drivers may gain greater flexibility in fuel choice. In parallel, the move aligns with Nigeria’s climate and energy goals by facilitating cleaner-burning fuel without compromising the country’s economic development trajectory.

Challenges and Considerations

As with any large-scale energy project, several challenges must be navigated. These include upfront capital requirements, the development of seamless distribution logistics, ensuring a consistent gas supply, and maintaining rigorous safety and environmental standards. Community engagement and workforce development will be essential to secure local acceptance and to build the capabilities needed to operate and maintain a broad network of CNG refuelling stations.

Looking Ahead

The Nigeria MDGIF-Endurance Group plan to roll out 500 CNG refuelling stations in three years represents a transformative moment for the country’s transport energy landscape. If successful, the initiative could catalyse a broader adoption of natural gas as a mainstream transport fuel and set a benchmark for similar programs across the region. Stakeholders will be watching closely as pilots transition into a scalable national network that could reshape Nigeria’s energy and environmental future.