The Federal Government has announced that Nigeria’s Compressed Natural Gas (CNG) industry has secured more than $2 billion in private investments, with projections to scale up to $5 billion by 2027. The milestone was achieved through the ongoing efforts of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (PiCNG).
The update was disclosed in Abuja during the unveiling of new CNG technologies by Alfa Design Nigeria Limited. PiCNG Executive Chairman and CEO, Ismaeel Ahmed, represented by the initiative’s Chief Compliance Officer, Zayyanu Tambari, said the sector had moved from near obscurity to becoming a robust magnet for capital inflow.
According to Ahmed, Nigeria’s CNG market had little to no private backing before the reform agenda began in 2023. “The sector was practically non-existent when we started. Today, we have attracted over $1.8 billion, and rounded up, that is $2 billion in private sector investment in just two years,” he stated.
He described the government’s $5 billion investment target as “modest,” noting that rising investor confidence could potentially push funding into double-digit billions by the projected year.
Beyond financial investment, PiCNG says it has driven significant employment growth across the country. The initiative has reportedly created more than 80,000 direct jobs, with expectations to expand to 300,000 direct jobs by 2027. Ahmed said the initiative is “reasonably confident” of meeting and surpassing this goal.
Infrastructure development has also accelerated rapidly. Nigeria’s CNG vehicle conversion centers have grown from seven facilities in 2023, when President Bola Tinubu launched the program, to 369 centers currently, with an ambitious target of 3,000 centers by 2027.
Similarly, CNG refueling stations are expanding. From 20 stations in 2023, the network has grown to over 68 licensed outlets, along with more than 150 facilities under construction. The federal government’s broader roadmap envisions between 2,000 and 2,500 retail stations nationwide within the next three years.
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The initiative forms a critical part of Nigeria’s strategy to improve energy affordability, reduce dependence on petrol and diesel, and stimulate industrial growth through cleaner, cost-effective fuel alternatives.