FG targets 2,000 CNG stations as State House joins conversion drive

The Federal Government has set a target of establishing 2,000 additional Compressed Natural Gas (CNG) refuelling stations nationwide by early 2027, as it intensifies efforts to reduce transportation costs following the removal of petrol subsidy.

The Chairman of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, Ismael Ahmed, disclosed this on Friday during the conversion of an abandoned petrol station at the State House, Abuja, into a CNG refuelling facility.

Ahmed said President Bola Tinubu had directed the establishment of 1,500 additional stations in February and another 500 in August, with the facilities expected to come on stream between now and early 2027.

He said Nigeria currently had 106 operational CNG stations, while 170 others were at various stages of development or awaiting regulatory approval.

Ahmed said the programme had moved beyond the experimental stage and was now focused on expanding infrastructure and increasing adoption.

He cited reductions in transport fares on routes where CNG-powered buses operate, saying the fuel had cut transportation costs by between 30 and 40 per cent in areas including Abuja, Lagos and the Kano-Katsina corridor.

According to him, commuters travelling between Kano and Katsina, who previously paid between N3,000 and N4,000, can now pay approximately N1,500 on CNG-powered buses.

The new facility at the State House was inaugurated by the Permanent Secretary, State House, Temitope Fashedemi, who said the project was executed at no cost to the government through a partnership with Pi-CNG and Rollin Energy Limited.

Fashedemi said the decision to convert the abandoned filling station was intended to demonstrate the viability of the CNG transition model and encourage private investors to establish similar facilities.

“All the filling stations you see around, are they owned by government? No. They are owned by people and business operators.

“The earlier existing and prospective business people recognise this as an opportunity and partner with Pi-CNG to establish these facilities, the better,” he said.

He disclosed that the State House had already integrated CNG technology into its vehicle fleet, with about 10 recently acquired JAC vehicles operating as hybrid models, alongside shuttle buses serving the Presidential Villa.

Fashedemi added that interested State House personnel would be invited to convert their personal vehicles to CNG-hybrid systems in the coming weeks, subject to technical eligibility assessments.

“We are demonstrating that we are walking the talk of Mr President,” he said.

The Chief Executive Officer of Rollin Energy, Mubarak Danbatta, said the new facility, located in Karu, Abuja, could refuel approximately 150 vehicles daily, including motorcycles, depending on cylinder sizes and operating pressure.

He said the integrated facility has double-nozzle dispensers that allow vehicles to refuel simultaneously from both sides.

Danbatta disclosed that the State House project was the company’s second partnership with Pi-CNG, following an earlier collaboration launched on May 29, 2024.

He said Rollin Energy currently operated facilities in Ilorin and Abuja, with two additional stations in Kano expected to be commissioned next week and two more planned for Kaduna.

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The company is targeting nearly 15 CNG facilities nationwide before the end of 2026, he added.

The Senior Special Assistant to the President on Domestic Affairs, Toyin Subair, said the Federal Government and state governments were expanding investments in CNG-powered buses, trucks and tricycles to ensure that lower fuel costs translated into reduced transport fares.

Subair disclosed that the National Economic Council had committed to a joint financing arrangement with the Federal Government to support affordable transportation across states, targeting fare reductions of 40 per cent or more, particularly on interstate routes and for the transportation of agricultural produce.

He also said more than 30,000 additional vehicle conversion kits were expected to enter the Nigerian market from next week to expand conversion capacity ahead of the Christmas travel season.

The CNG transition has continued since Tinubu removed the petrol subsidy in May 2023, triggering sharp increases in fuel prices, transport fares and the cost of goods.

The President has promoted CNG, for which Nigeria holds significant reserves, as a cheaper and cleaner domestic alternative to petrol and diesel.