Nigeria has discussed compressed natural gas for years, but the political will to treat it as a national priority only emerged under President Bola Ahmed Tinubu. After the petrol subsidy was removed in 2023, the administration framed CNG as a structural answer to a long-standing contradiction: a gas-rich country still dependent on petrol and diesel to move people and goods.
The Presidential Initiative on Compressed Natural Gas and Electric Vehicles (PiCNG & EV) was created to turn that proposition into a functioning market. Its mandate goes beyond vehicle conversion and asset distribution to coordinating an industry spanning infrastructure, vehicles, investors, financiers, technicians, operators and consumers.
A workable ecosystem requires mother stations for compression and distribution, daughter stations for dispensing, certified kits and cylinders, trained technicians, enforceable safety standards and accessible financing. India, Pakistan and Egypt demonstrate that CNG can cut transport costs when vehicles, stations and demand expand together, even if Nigeria cannot simply replicate their models.
The industry is taking shape. More than 120,000 vehicles have been converted, supported by over 400 certified conversion centres and more than 90 operational refuelling stations, with around 180 more in development. Some 52 technicians were trained in Kano within three months, with hundreds more trained nationally. PiCNG & EV says it has helped catalyse approximately $2.5 billion in private-sector investment alongside about ₦250 billion in public-sector funding and commitments. In April, the initiative launched the Buy Now, Pay Small Small financing scheme with Moniepoint, CREDICORP and other partners so eligible owners can convert without paying the full cost upfront.
Challenges remain where adoption is outpacing dispensing capacity. Queues reflect demand, but a cheaper fuel that takes hours to obtain is not sufficiently available. Some constraints sit upstream in getting gas to processing and compression points reliably. The immediate priority is availability: accelerating mother and daughter stations across cities and major corridors, with mobile refuelling where suitable.
Conversion costs are real, and certified kits, trained technicians and safety standards cannot be sacrificed. The approach is to expand financing, encourage competition, develop local capacity and drive volume so entry barriers fall without cutting corners.
