MDGIF to Build 500 CNG Refuelling Stations Across Nigeria

The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has unveiled a bold initiative to deploy 500 Compressed Natural Gas (CNG) refuelling stations nationwide over the next three years. The project is a cornerstone of Nigeria’s energy transition strategy, offering a cheaper, cleaner alternative to petrol and diesel while addressing the economic pressures following fuel subsidy removal.

Oluwole Adama, Executive Director of MDGIF, confirmed that the Fund has finalised agreements with Chinese manufacturer Endurance Group to execute the rollout. The ambitious plan aims to accelerate the adoption of Auto-CNG in Nigeria’s transport sector, where limited infrastructure has previously hampered growth.

Closing Nigeria’s CNG Infrastructure Gap

The project will be operated through a new government-backed Special Purpose Vehicle (SPV), the Compressed Natural Gas Auto Mobility Infrastructure Company (CAM InfraCo), promoted by MDGIF, the Bank of Industry (BOI), and international partners.

Key elements of the strategy include:

• Nationwide Coverage: Deployment of fully integrated CNG refuelling stations alongside Liquefied Compressed Natural Gas (LCNG) facilities across all states.
• Virtual Pipeline: To reach regions without traditional gas pipelines, CNG and LNG transportation trucks with mounted cascades will create a “virtual pipeline,” ensuring reliable supply nationwide.

Economic and Environmental Benefits

The construction and operation of 500 CNG stations are expected to bring substantial economic and environmental advantages:

• Cost Savings: CNG is significantly cheaper than petrol, reducing fuel costs for commercial and private vehicles.
• Job Creation: The project will stimulate employment across construction, operations, and CNG conversion and maintenance services.
• Cleaner Air: CNG burns cleaner than petrol and diesel, helping to reduce urban air pollution and improve public health.
• Energy Security: Increased use of domestically sourced natural gas reduces reliance on imported petroleum products, enhancing Nigeria’s energy independence.

The MDGIF’s commitment to building this extensive CNG infrastructure marks a pivotal shift in Nigeria’s fuel consumption strategy, positioning natural gas as a key driver for sustainable, cost-effective, and environmentally friendly mass transit.