Nigeria inaugurates new Abuja CNG station as federal push expands network to 106 sites

The federal government inaugurated a new compressed natural gas (CNG) refuelling and vehicle conversion centre in Karu, Abuja, on Friday. The facility, situated on Saint George Akume Way, was opened as part of a broader effort to expand Nigeria’s CNG infrastructure and reduce transportation expenses.

Temitope Fashedemi, the Permanent Secretary of the State House, and Ismaeel Ahmed, the Executive Chairman of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi‑CNG & EV), presided over the event. The project was delivered through a partnership that involved the State House, Pi‑CNG & EV, and private firm Rolling Energy Ltd, which financed the renovation of an abandoned State House petrol station and installed the necessary CNG equipment.

Background

Nigeria’s CNG rollout has accelerated over the past two years, with the federal government reporting about 106 operational stations across the country. Ahmed stated that this newest Karu location marks the 106th installation, while adding that 170 more sites are currently in the development phase or waiting for permits from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The initiative is backed by significant private‑sector capital, amounting to roughly $2.6 billion, which has been directed toward expanding the network. President Bola Tinubu has ordered a further round of approximately 500 refuelling units to be funded through the Midstream and Downstream Gas Infrastructure Fund (MDGIF). The Karu initiative transforms a previously used State House petrol depot into a combined CNG refuelling and vehicle conversion centre, a process that did not require any direct government funding for the upgrades.

Rolling Energy, selected for its experience in operating CNG facilities, provided free refuelling to motorists in nearby communities during a testing period of more than a week. The partnership model emphasises private investment over direct government ownership, reflecting the administration’s policy stance.

Why it matters

The expansion of CNG infrastructure is intended to lower transport costs, with Ahmed citing reductions of 30 % to 40 % on routes where CNG‑powered buses operate. By offering an alternative to diesel and petrol, the network aims to alleviate pressure on existing stations, improve fuel accessibility, and stimulate private‑sector participation in the energy sector.

The State House’s acquisition of about ten hybrid vehicles and shuttle buses, as disclosed by Fashedemi, signals a broader commitment to hybrid and CNG technologies within government operations. Eligible State House employees may also have their vehicles assessed for conversion to CNG‑hybrid systems, potentially extending the environmental and cost benefits.

Reduced reliance on imported fuels and decreased gas flaring are additional strategic goals, as the government seeks to capture greater economic value from Nigeria’s abundant natural gas reserves.

What happens next

The federal government plans to continue the rollout of CNG stations, with the announced 500‑unit expansion under the MDGIF expected to further extend coverage to remote and high‑traffic corridors. Rolling Energy and other private investors are encouraged to develop similar projects, leveraging the partnership framework demonstrated at the Karu site.

Pending licences from NMDPRA will determine the timeline for the 170 stations currently in development. Meanwhile, the State House intends to assess and potentially convert additional employee vehicles to CNG‑hybrid systems in the coming weeks.

The inauguration of the Abuja station thus marks both a milestone in the current network and a stepping stone toward the government’s longer‑term goal of nationwide CNG accessibility.