Despite securing more than $2 billion in private sector investment commitments, the Federal Government has fallen short of its 2025 nationwide Compressed Natural Gas (CNG) infrastructure targets, raising concerns over implementation gaps and delivery timelines.
Findings from checks across relevant agencies and industry stakeholders show that while funding commitments and policy backing remain strong, the pace of on-ground infrastructure rollout has lagged behind projections.
The Presidential CNG Initiative (PiCNG), launched in 2023 following petrol subsidy removal, had announced plans to deliver:
- 500 conversion centres
- Over 150 CNG retail outlets
by the end of 2025.
However, data available on the initiative’s website shows that since 2023, just over:
- 300 conversion centres
- 40+ refuelling stations
have been built, with no year-by-year breakdown clarifying how much of that progress occurred in 2025.
As of January 2025, when the 2025 targets were reiterated, Nigeria had roughly:
- 193 conversion centres
- About 50 refuelling stations
– indicating a significant shortfall relative to year-end ambitions.
At a January 30, 2025 event in Kogi State commissioning five mini-LNG plants, PiCNG Programme Director Michael Oluwagbemi reaffirmed the 500-centre and 150-outlet goal.
However, requests for updated performance data were redirected among agencies.
Officials at the Federal Ministry of Finance and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) pointed back toward the CNG initiative office, reflecting what insiders described as a “deflection” of responsibility.
The CNG programme was introduced as a central pillar of Nigeria’s post-subsidy energy transition strategy in 2023, when petrol prices surged nationwide.
Funding allocations and projections include:
- N100 billion approved in late 2023
- N130 billion in the 2024 budget
- N225 billion in the 2025 budget cycle
- $2 billion+ in private investment commitments
- A projected $5 billion target by 2027
The initiative is expected to generate thousands of direct and indirect jobs across vehicle conversion, cylinder manufacturing, logistics, and station development.
Industry operators say infrastructure concentration along pilot corridors and major cities has slowed nationwide adoption.
Transport union leaders and fleet operators warn that limited refuelling access discourages widespread vehicle conversion.
Sector bottlenecks include:
- Delays in equipment importation
- Limited local manufacturing capacity for cylinders and kits
- Regulatory approval timelines
- Logistics constraints
- Uneven state-level coordination
- Limited financing for smaller conversion centres
With 2025 now concluded, analysts say the focus is shifting from headline investment announcements to measurable infrastructure outcomes.
The CNG initiative remains central to the Federal Government’s strategy to:
- Reduce transport fuel costs
- Lower foreign exchange pressure
- Expand domestic gas utilisation
- Cut reliance on imported petrol
But energy analysts note that execution speed, nationwide station coverage, and transparent reporting will ultimately determine whether the programme achieves its cost-reduction and energy-transition objectives.
