The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, has expressed concern over Nigeria’s slow progress in developing compressed natural gas (CNG) infrastructure, revealing that the country currently has fewer than 50 compression stations serving a population of over 200 million. Ahmed made this disclosure at the recently concluded Nigerian Association of Energy Correspondents (NAEC) Summit in Lagos, where he emphasised the urgent need for increased investment in alternative energy sources to drive national growth and diversification.
Ahmed, represented by the agency’s spokesman, George Ene-Ita, stated that despite the Federal Government’s efforts to promote gas as a transition fuel, significant infrastructure gaps persist. He noted that Nigeria also has fewer than 3,000 liquefied petroleum gas (LPG) refilling plants nationwide, a figure he described as inadequate for a nation of Nigeria’s size. “As a country, we urgently need a diversified investment approach in our energy mix to expand our economy beyond fossil fuels,” Ahmed said.
He stressed that closing these infrastructure gaps is critical to achieving sustainable economic growth, job creation, and energy security. “A constructive approach to developing other energy sources can sustain growth, create jobs, and expand the nation’s revenue base,” he added. The NMDPRA boss said the authority is working to attract private sector investments to bridge the infrastructure gap and accelerate the adoption of gas as a cleaner, cheaper, and more environmentally friendly energy source.
Ahmed reaffirmed the agency’s commitment to implementing the National Energy Transition Plan, which identifies natural gas as a bridge fuel toward renewable energy. He pointed out that Nigeria’s vast gas reserves present significant opportunities for investment across the upstream, midstream, and downstream sectors of the gas value chain. However, he stressed that real progress depends on collaboration between government and private stakeholders. “Our pathway to a sustainable future centres on four strategic pillars gas as both a backbone and bridge; energy security through refining, storage, and supply resilience; decentralised power and clean alternatives; and regulatory certainty with people-focused policies,” Ahmed explained.
He called for deliberate efforts to expand both CNG and LPG infrastructure nationwide to make gas more affordable and accessible for households, industries, and transport operators. The Federal Government, through the Presidential Compressed Natural Gas Initiative (PCNGi), has been promoting CNG as an alternative to petrol and diesel, especially following the removal of the fuel subsidy in 2023, which pushed petrol prices from about ₦175 to over ₦870 per litre.
To cushion the impact, the government introduced incentives for vehicle owners to convert their petrol or diesel engines to CNG. However, adoption has been hindered by the scarcity of CNG refilling stations and the high cost of vehicle conversion.
Despite these challenges, the PCNGi has reported significant progress. According to Programme Director Michael Oluwagbemi, the number of CNG-powered vehicles has grown from fewer than 4,000 to nearly 100,000 within a year. Conversion centres have increased from seven to 265, while operational refuelling stations rose from 20 to 60, with 175 more under construction. He said 100 additional stations would be launched within three months.
Oluwagbemi defended the pace of progress, saying, “Rome wasn’t built in a day,” and insisted that the government’s phased approach was necessary for long-term sustainability. Nonetheless, concerns remain over the rising cost of CNG, which climbed from ₦230 to ₦450 per standard cubic metre in September, leading to long queues at the few available refilling stations.
