Okay News reports that for the next three years, the Midstream and Downstream Gas Infrastructure Fund (MDGIF) has concluded discussions with leading Chinese manufacturer Endurance Group to make available 500 CNG refuelling stations across Nigeria.
The ambitious project aims to accelerate Nigeria’s transition to compressed natural gas as an alternative to petrol and diesel.
Briefing the press after the meeting in Abuja, Nigeria’s capital, Executive Director of the MDGIF, Mr Oluwole Adama, said the discussion centred on the creation of a government-backed Special Purpose Vehicle promoted by MDGIF, Bank of Industry, Endurance Group, and Séquor Investment Partners. The Midstream and Downstream Gas Infrastructure Fund is a Nigerian government initiative established to develop gas infrastructure across the country.
He said, “The collaboration underscores the parties’ commitment to accelerating Nigeria’s transition to cleaner fuels by addressing infrastructure gaps across the country’s CNG value chain.” Compressed natural gas has emerged as a priority alternative fuel under President Bola Tinubu’s administration as Nigeria seeks to reduce dependence on imported petrol.
“Under this agreement, we will set up the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), which will be used to deploy 500 integrated CNG refuelling stations, develop LCNG gas supply infrastructure, and provide CNG and LNG transportation trucks with truck-mounted cascades, forming a virtual pipeline across all states nationwide,” Adama explained.
According to him, the project will help ease the long queues currently being experienced at existing CNG filling stations by expanding access to refuelling points and ensuring consistent supply through improved logistics and distribution systems. Nigeria currently has limited CNG refuelling infrastructure, with most stations concentrated in Lagos and Abuja.
Similarly, Mr Oluwatoyin Subair, the Senior Special Adviser to the President on Special Duties and Domestic Affairs, said the project aligns with President Bola Tinubu’s vision of ensuring energy security by deepening the use of auto CNG and reducing overdependence on PMS and AGO, especially in the transportation sector. PMS refers to Premium Motor Spirit (petrol) while AGO means Automotive Gas Oil (diesel).
He added that the initiative supports the administration’s broader economic reforms aimed at promoting cleaner, more affordable energy alternatives for Nigerians and creating new employment opportunities within the domestic gas value chain. Nigeria possesses Africa’s largest natural gas reserves, estimated at over 200 trillion cubic feet.
Also speaking, the CEO of Endurance Group, Mr Eric Lin, explained that the objective of the SPV is to establish a nationwide CNG refuelling, maintenance, and logistics ecosystem by leasing CNG-related equipment to certified operators, while ensuring a consistent and reliable gas supply through a world-class virtual pipeline network. Endurance Group is a Chinese manufacturing company specializing in energy infrastructure equipment.
CAM InfraCo’s leasing and logistics strategy is designed to create a commercially viable and resilient national CNG refuelling network. The strategy focuses on delivering CNG from strategically located mother stations into underserved northern corridors and rapidly growing southern clusters, leveraging existing hubs and planned infrastructure to ensure sustainable and cost-effective market expansion nationwide.
The Bank of Industry, one of the project partners, is Nigeria’s oldest and largest development finance institution, providing financial assistance to enterprises in the industrial and agricultural sectors. Séquor Investment Partners is an investment firm focused on infrastructure and energy projects in Africa.
The Presidential CNG Initiative, launched by President Tinubu in 2023, aims to convert one million vehicles to run on CNG and establish widespread refuelling infrastructure across Nigeria. The initiative is part of efforts to cushion the impact of petrol subsidy removal and reduce transportation costs for Nigerians.
Nigeria’s transportation sector remains heavily dependent on imported petrol, with daily consumption exceeding 60 million litres. The shift to CNG, which is significantly cheaper and locally available, represents a strategic move toward energy independence and cost reduction for transport operators and consumers.
