By Matthew Otabe
The Convener and National Chairman of the National Compressed Natural Gas Forum (NCNG-F), Faruk Abdullahi, has challenged the Federal Government and private-sector investors to transform Nigeria’s abundant natural gas resources into economic prosperity through affordable energy, job creation and industrial development.
Abdullahi said Nigeria must move beyond boasting about its huge gas reserves and develop the infrastructure, financing mechanisms and institutional partnerships required to harness the resources for national development.
He made the call while delivering the keynote address at the maiden edition of the National CNG Summit held in Abuja on Tuesday.
Describing Nigeria’s situation as a paradox, he noted that despite the country’s enormous natural gas resources, their potential had not been fully translated into affordable energy, industrial competitiveness and economic opportunities for citizens.
He said the immediate task was to build a sustainable ecosystem that would make Compressed Natural Gas (CNG) accessible, commercially viable, safe and dependable across the transportation and industrial sectors.
According to him, the success of Nigeria’s CNG transition should not be measured solely by the number of vehicles converted or refuelling stations established but by its impact on transportation costs, employment generation, business growth, investment and the living conditions of ordinary Nigerians.
“Behind every energy policy is a human story. When we discuss CNG, we are discussing the commercial driver whose daily earnings are consumed by the cost of fuel, the trader whose transportation expenses influence the price of goods and the farmer whose produce must travel long distances to reach the market,” he said.
He added that the initiative offered millions of young Nigerians opportunities to acquire new skills, establish businesses and participate in emerging industries.
Abdullahi commended President Bola Tinubu for introducing the Presidential Initiative on CNG and Electric Vehicles, describing it as an important intervention towards reducing transportation costs, deepening domestic gas utilisation and diversifying Nigeria’s energy mix.
He expressed confidence that the initiative could become one of the administration’s enduring policy legacies if its implementation was sustained and translated into tangible benefits for Nigerians.
However, he called for a transition from government intervention to a self-sustaining industry, stressing that the long-term viability of the sector would depend on private-sector investment, institutional collaboration, technical competence and investor confidence.
“Government can provide a vision, establish policy direction and catalyse initial investment, but the long-term sustainability of this industry will ultimately depend on private-sector participation, institutional collaboration, technical competence and investor confidence,” he stated.
The NCNG-F chairman explained that the forum was established to provide a common platform for stakeholders across the CNG value chain to engage government, address industry challenges and contribute to sustainable national development.
He said the organisation brings together conversion centres, CNG marketers, refuelling station operators and other industry players to promote coordination, constructive engagement and practical solutions.
Abdullahi identified infrastructure financing, vehicle conversion costs, access to credit, gas availability, regulatory clarity, technical standards, safety and public awareness as major challenges confronting the industry.
He urged government institutions, investors, financial institutions, transport unions, regulators and international technology providers to work together to address the challenges.
He also encouraged investors and captains of industry to explore opportunities in gas production, processing, distribution, vehicle conversion, manufacturing, storage, engineering services and financing.
According to him, financial institutions and development finance partners must develop innovative financing arrangements that would make vehicle conversion affordable, support infrastructure development and enable local enterprises to expand.
He emphasised that CNG adoption was not merely about changing the fuel used by vehicles but about stimulating an entire economic value chain capable of generating employment, expanding local manufacturing and strengthening national prosperity.
Speaking on the summit’s theme, “Accelerating Nigeria’s CNG Future: From Awareness to Adoption, Investment and Industrial Growth,”
Abdullahi said awareness alone could not transform the economy without concrete adoption, investment and industrial expansion.
He urged participants to ensure that the summit produced practical partnerships, investment commitments and recommendations that would translate into measurable results.
He further stressed the need for certified equipment, accredited conversion centres and properly trained technicians, noting that safety and public confidence were essential to the successful expansion of CNG services.
The Executive Chairman of the Presidential Initiative on CNG and Electric Vehicles, Barrister Ahmad Ismaël, said the Federal Government has announced plans to establish up to 1,000 additional CNG stations nationwide as part of efforts to accelerate the adoption of alternative energy and reduce transportation costs.
He said the government was intensifying efforts to expand CNG infrastructure, strengthen gas supply networks, attract private-sector investment and address challenges limiting the adoption of natural gas as an alternative transportation fuel.
Ismaël disclosed that Nigeria currently had 105 operational CNG stations, while another 127 were at various stages of completion, bringing the existing and planned facilities to 232.
He explained that the government was working towards implementing President Tinubu’s directive for 500 additional stations, alongside another 500 subsequently announced to improve nationwide accessibility.
He noted that Nigeria’s estimated 215 trillion cubic feet of proven natural gas reserves and vehicle population of about 12.6 million presented enormous opportunities for developing the CNG market.
The presidential initiative chairman said transportation accounts for between 15 and 22 per cent of household expenditure, maintaining that switching to CNG-powered vehicles could significantly reduce transportation costs.
He, however, identified infrastructure development as a major challenge, explaining that establishing CNG stations required gas supply sources, compression facilities, pipelines, virtual pipelines and transportation logistics.
He also called for increased public awareness, insisting that CNG technology was safe when properly installed and maintained in accordance with established standards.
Abia commits to CNG, electric mobility investments.
In his goodwill message, the Abia State Governor,Dr. Alex Chioma Otti represented by Emenike Onyembi, Senior Special Assistant on National Assembly Matters said Nigeria’s energy transition required deliberate policy implementation, investment and collaboration between government and the private sector.
The governor noted that despite the country’s abundant gas resources, the removal of fuel subsidy had exposed households, workers and businesses to rising transportation and energy costs.
He identified affordable pricing, uncompromising safety standards and accessible refuelling infrastructure as three critical conditions for successful CNG adoption.
He explained that motorists would be reluctant to convert their vehicles without accessible refuelling stations, while investors would hesitate to establish stations without sufficient vehicles to patronise them.
The governor also highlighted financing, foreign exchange challenges and local manufacturing as important considerations, arguing that domestic production of CNG equipment would reduce dependence on imports and protect the industry against currency fluctuations.
Highlighting Abia State’s initiatives, he disclosed that the state had established 40 electric buses under its Green Shuttle programme, with plans to expand the fleet to 100.
He further revealed that the state had provided land for vehicle manufacturing and assembly facilities at Obuaku City, with a proposed production capacity of up to 40,000 vehicles annually, including electric and CNG-powered vehicles.
Additionally, the state had endorsed a proposed $13.1 million CNG project at the Abia Industrial and Innovation Park, expected to become an integrated CNG hub in the South-East.
He urged investors, manufacturers and development partners to translate discussions at the summit into concrete commitments on financing, infrastructure development, certification and project implementation.
20 universities to get CNG conversion, training centres
At a panel discussion, stakeholders called for stronger research, innovation and technical capacity development to ensure the long-term sustainability of Nigeria’s CNG programme.
The Vice-Chancellor of the Federal University of Transportation, Daura, Katsina State, Prof. Umar Adam Katsayal, urged the government to integrate universities into the emerging CNG ecosystem through research, engineering, financial education and practical innovation.
He noted that the opportunities presented by the energy transition extended beyond road transportation to rail, maritime and aviation.
Also speaking, the Chief Operating Officer of the Presidential Initiative on CNG and Electric Vehicles, Cooker Tosin, disclosed that plans were underway to establish CNG stations, vehicle conversion centres, inspection facilities and training centres in 20 universities across the country.
He said six of the proposed facilities were already operational, while the remaining centres were expected to become functional before the end of the year.
According to him, the initiative would provide students and university workers with affordable transportation while creating opportunities for technical training and skills acquisition.
Similarly, a representative of the National Automotive Design and Development Council disclosed that the council had established CNG facilities in 15 universities, with five completed and 10 at different stages of development.
She added that more than 23 automotive training centres had also been established to provide technical skills in vehicle repairs and maintenance.
The Group Head of Oil and Gas at the Bank of Industry, Nafisa Sambo-Bashari, disclosed that the bank had business development support programmes for entrepreneurs interested in investing in the CNG sector.
She encouraged prospective investors to submit expressions of interest, explaining that the bank provides business advisory services to help micro, small and medium-scale enterprises develop viable business proposals and access financing opportunities.
Tosin also assured investors that the Presidential Initiative remained open to innovative business proposals and partnerships, adding that prospective investors could be connected with financial institutions and other relevant stakeholders.
Meanwhile, the Chief Executive Officer of Al Ghanim Group expressed interest in investing in Nigeria’s energy transition sector, disclosing that discussions were at an advanced stage towards establishing a $1 billion infrastructure fund.
He said the proposed fund would support infrastructure development, including energy transition projects, noting that Nigeria’s natural resources and investment opportunities could attract substantial capital from the Middle East.
The maiden National CNG Summit brought together government officials, energy experts, financial institutions, automotive industry representatives, researchers, investors and other stakeholders.
Discussions centred on infrastructure expansion, affordable financing, local content development, research and innovation, safety standards, public awareness and private-sector participation.
The stakeholders emphasised the need for stronger collaboration among federal and state governments, financial institutions, universities and industry operators to transform Nigeria’s natural gas resources into affordable transportation, employment opportunities and sustainable industrial growth.
