Nigeria’s automotive industry is accelerating toward cleaner energy solutions as local carmaker Innoson Vehicle Manufacturing (IVM) Limited announces plans to establish a Compressed Natural Gas (CNG) assembly plant in Bayelsa State, tapping into the country’s fast-growing $10 billion CNG market.
The move marks a significant expansion for Nigeria’s indigenous automaker and underscores the nation’s broader shift from petrol-powered transportation to natural gas alternatives.
During a visit to Governor Douye Diri in Yenagoa, IVM founder and CEO Innocent Chukwuma revealed that the proposed facility will assemble CNG-powered buses, ambulances, and vehicles while providing large-scale employment and technical training opportunities.
“This investment will strengthen Bayelsa’s industrial base and create thousands of direct and indirect jobs in assembly, maintenance, logistics, and local manufacturing,” Chukwuma said.
The project is expected to create more than 1,000 jobs and support Nigeria’s renewable energy goals ahead of its 2030 target, as seen on Business Insider Africa.
Nigeria’s transition to Compressed Natural Gas as a cleaner and more affordable transportation option is gathering pace through government-backed initiatives and private sector investments.
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The Presidential Compressed Natural Gas Initiative (Pi-CNG) is spearheading efforts to expand refueling and vehicle conversion infrastructure nationwide, with new CNG stations already operational in Abuja, Lagos, and Enugu.
According to Pi-CNG Chief Executive Michael Oluwagbemi, Nigeria’s CNG market could exceed $10 billion within the next five years, positioning the country to capture a share of the global clean mobility industry, valued at $384.65 billion in 2022 and projected to reach $1.58 trillion by 2030.
The Nigerian National Petroleum Company (NNPC) Limited, in collaboration with NIPCO Gas, has commissioned 12 CNG stations and plans to develop 100 more, along with three liquefied natural gas (LNG) sites, to enhance energy diversification.
Several national agencies are also working to localize production and technology.
The National Agency for Science and Engineering Infrastructure (NASENI) recently partnered with Adeayworld Energy to produce and distribute CNG kits domestically.
Similarly, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and Rolling Energy have launched a program to convert over 100,000 vehicles and train small businesses in CNG maintenance.
Private sector activity is expanding as well. Lagos now hosts a 5.2 million standard cubic feet per day CNG plant, the largest in Nigeria, while Imo State’s Anoh CNG Park, benefiting from proximity to the Assa North-Ohaji gas reserves, is advancing industrial-scale gas utilization.
Together, these developments highlight Nigeria’s deepening commitment to energy transition and industrial growth.
As rising petrol prices and environmental pressures reshape the transport sector, CNG is emerging not just as a cost-effective fuel alternative but as a cornerstone of Nigeria’s evolving green industrial revolution.
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Image Credit: Business Insider Africa
