Nigeria’s compressed natural gas market, once nearly non-existent, is now attracting billions. According to the Presidential Initiative on Compressed Natural Gas (PiCNG) and Electric Vehicles, private investors have committed over $2 billion to the CNG subsector since the programme’s inception.
The Executive Chairman/ Chief Executive Officer (CEO) of PiCNG, Ismaeel Ahmed, recently revealed this in Abuja at an event where Alfa Design Nigeria Limited unveiled new CNG products. The showcase featured conversion kits by Mijo AutoGas, cylinders by EKC International, a CNG Mother Station by CIMC ENRIC and an Optical Gas Imaging Camera by Opgal Optronics.
What happened
Ahmed, represented by the Chief Compliance Officer of PiCNG, Zayyanu Tambari, said the market barely existed before the initiative began in 2023. According to him, investment was slow, interest was thin and the ecosystem had no structure.
He explained that the picture has now changed. As he put it, the programme has already attracted over $1.8 billion, rounded to $2 billion, from private investors within two years.
He stated that the initiative is working toward $5 billion in investment by 2027, a target he described as modest because of the growing interest from companies entering the CNG space.
Who benefits
Businesses in the CNG value chain are gaining new life. New plants are being built. Equipment producers are expanding. Investors are finding opportunities that did not exist three years ago.
Nigerians seeking jobs also stand to benefit. Ahmed said the initiative has created more than 80, 000 direct jobs so far. Using a ratio of 1:4, the indirect jobs are even larger. The target for 2027 is 300, 000 direct jobs, and he expressed confidence that the programme would exceed this.
Consumers will also gain from lower transport costs once more CNG vehicles, kits and stations come on stream.
Who loses
The diesel-dependent transport ecosystem is losing ground. Companies that refused to shift from old models may struggle as cleaner and cheaper options expand.
Legacy fuel players that ignored the growing gas market may also find themselves playing catch-up.
What it means
The numbers show a sector that is expanding at speed. When the programme started in 2023, Nigeria had only seven conversion centres. Today, there are 369. The target for 2027 is 3, 000, and Ahmed believes the current pace could surpass that.
The same pattern applies to refuelling stations. In 2023, the country had just 20 CNG stations. Today, there are more than 68 licensed stations and more than 150 under construction. By 2027, the target is between 2,000 to 2,500 outlets.
These figures show a rapid transformation of the gas-powered mobility market and a clear shift toward cleaner, cheaper fuels.
The policy logic
The initiative is tied to the government’s broader energy strategy. When President Bola Tinubu launched the CNG programme in 2023, it was positioned as a key pillar of the new energy mix.
The plan aligns with the government’s push for mobility built on gas, green solutions and economic growth. Nigeria’s large natural gas reserves make CNG a cheaper and more sustainable alternative for mass transit.
What to expect
The sector is likely to grow even faster. Last month, Vice President Kashim Shettima urged automotive manufacturers to expand their capacity for CNG and electric vehicles, saying the country’s demand for cleaner and affordable mobility is rising quickly.
With investment flowing, new stations being built and manufacturers ramping up production, the CNG market is moving from a small idea to a national industry.
Should the momentum persist, PiCNG’s $5 billion target could turn out to be conservative.
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