Follow Us on Google
By Adewale Sanyaolu
As Nigeria accelerates its shift from Premium Motor Spirit (PMS), also known as petrol, following the removal of fuel subsidies. which has made Compressed Natural Gas (CNG) roughly 74% cheaper than petrol as of April 2025. motorists are increasingly frustrated by the limited number of CNG refueling stations.
The shortage of CNG refueling stations is now hindering the fuel’s wider adoption, forcing motorists to spend hours waiting in line and losing valuable time that could otherwise be spent productively.
According to latest statistics by the Presidential Initiative on CNG (Pi-CNG), a key programme of the federal government launched in 2023 to promote the widespread adoption of CNG and electric vehicles especially in mass transit systems driving cost savings, job creation, energy security, and environmental sustainability, there are currently 68 auto gas stations, 369 conversion centres while 150 are under construction and another 27 Mother Stations projects are underway.
This picture paints a troubling number for a country of over 210 million Nigerians commuting from one part of the country to the other on a daily basis.
Last year, the Nigerian National Petroleum Company Limited (NNPC Ltd) and NIPCO Gas Limited, commissioned twelve Compressed Natural Gas (CNG) stations in the country which is still like a drop in the ocean compared to the number of vehicles running on CNG.
The stations commissioned in Abuja are located at Airport Road, Kubwa, Gaduwa, Olusegun Obasanjo way zone 1, Dei-Dei junction, Duste-Bwari road and Gwagwalada.
In Lagos State, the stations are located at Lateef Jakende, Agidingbi, Agege Motor Road, Mushin, Lekki-Epe expressway, Sangotedo, Eti-Osa LGA and Mobile Road, Apapa.
The Pi-CNG statistics further indicated that over 100,000 vehicles have been converted by mid-2025, but still less than one per cent of total vehicles, facing challenges like infrastructure gaps (especially in the North) but with government initiatives (PCNGI). The Pi-CNG target is aiming for one million conversions by 2027, supported by increasing conversion centers and new refueling stations.
At the moment, the Pi-CNG disclosed that 4,613 tricycles, 16,000 trucks(inclusive of Dangote’s 4,000 trucks CNG trucks and 547 buses have been deployed. In separate interviews at the weekend, motorists’ especially commercial operators lamented the increasing number of vehicles on queues at the Mobil CNG refueling station on Agidingbi road in Ikeja.
They complained that the inadequate number of refilling stations especially in Lagos remained a major setback to CNG penetration.
A tricycle operator who identified himself as Mr. Jude Okon said he spends an average of three hours in the queue each time he needs to refuel, adding that the man-hour loss is a setback to his daily revenue target.
“You know that most of these tricycles are picked up on a hire-purchase basis, and we have to pay back on a weekly basis. Imagine having to waste about six hours queuing for CNG in a week. That is a huge loss and a threat to revenue. We are appealing to the Federal Government, in partnership with private operators, to help us increase the number of CNG refueling stations to make public transportation easier for members of the public.”
Similarly, another inter-state transporter plying the Lagos-Ibadan route, Mr. Adio Sumonu, said the entire stretch of the Lagos-Ibadan expressway can only boast of one CNG refueling station. On most occasions, he said, the queue at that particular NIPCO station stretches several meters, thereby reducing the number of trips they ought to make in a day because they spend the better part of their trip at the station.
Augusto & Co, in its CNG Industry Report 2025, pointed out that infrastructure coverage is particularly limited in the northern and south-eastern regions, where poor pipeline connectivity and high distribution costs continue to impede market expansion. According to the report, additional demand-side constraints include high conversion costs, sparse refueling networks, low consumer awareness, and safety misconceptions. Furthermore, exchange rate volatility complicates pricing and investment, as feed gas is priced in dollars but paid for in naira.
However, the rating firm said that despite these challenges, the industry’s medium-term outlook appears promising, as the PCNGI aims to convert one million vehicles and deploy 150 new refueling stations by 2027.
“Complementary interventions, such as the N122 billion approved under the Midstream and Downstream Gas Infrastructure Fund (MDGIF) in October 2024, are facilitating infrastructure development. Furthermore, major players such as NIPCO Gas Limited, Powergas Global Investment Nigeria Limited, and BOVAS Group are scaling vertically integrated operations that span compression, distribution, and conversion services.”
