The Presidential Compressed Natural Gas Initiative (P-CNGi) has unveiled a strategic framework to enhance the nationwide distribution of compressed natural gas (CNG), in partnership with key industry players; the Nigerian National Petroleum Company Limited (NNPC Ltd.), the Gas Aggregation Company of Nigeria (GACN), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
This new Mobility-CNG Supply Framework is geared toward ensuring a stable, affordable, and adequate supply of autogas across the country, with a strong focus on the transport sector. The move is in line with Nigeria’s broader public sector reform agenda, aimed at promoting clean energy, boosting economic efficiency, and reducing transportation costs in a post-subsidy landscape.
Speaking at the launch event in Abuja, P-CNGi Programme Director, MichaelOluwagbemi, said the framework introduces a transparent and concessionary pricing model that reflects upstream and midstream costs while ensuring affordability for end-users. The pricing system, approved by the NMDPRA in 2024, also includes anti-arbitrage measures to ensure CNG allocated for mobility is not diverted for industrial or power-generating use.
“The Mobility-CNG Supply Framework will ensure affordable, uninterrupted, and sufficient autogas supply to end-users nationwide,” Oluwagbemi stated.
The initiative, backed by regulatory support and operational oversight, is poised to unlock opportunities across Nigeria’s energy value chain. The Gas Aggregation Company of Nigeria has secured 40 million standard cubic feet per day (mscfd) of gas, with 20 mscfd already in use and another 20 mscfd set for deployment. Discussions are also ongoing with upstream gas producers, alongside collaboration with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to access underutilised gas assets.
In addition to gas sourcing, a fleet of high-capacity CNG trailers is being deployed to facilitate gas distribution from mother stations to daughter and retail outlets. The initiative has also recorded notable infrastructure expansion, with the number of daughter stations rising from 20 to over 65 nationwide. Two new BOVAS stations recently opened in Ibadan, and 28 more are scheduled to be commissioned in the coming weeks.
According to Omolara Obileye, Strategy and Business Development Coordinator at P-CNGi, the programme has attracted over $500 million in investments and trained more than 2,500 technicians in vehicle conversion technologies reinforcing the initiative’s role as a catalyst for job creation and skills development.
This collaboration aligns with Africa’s broader transition toward cleaner energy and underscores the critical role of public-private partnerships in driving infrastructure growth, environmental sustainability, and inclusive economic development across the continent.
