Nigeria has failed to meet key targets under its Presidential Compressed Natural Gas (CNG) Initiative, local media reported on Thursday.
According to Nairametrics, since the program launched in 2023, around 300 vehicle conversion centers and just over 40 CNG refueling stations have been established.
The initiative has attracted more than $2 billion in private investment, the outlet added.
These numbers fall short of the federal government’s goals of 500 conversion centers and over 150 refueling stations to be operational by the end of 2025.
Program director Michael Oluwagbemi reiterated these targets in late January 2026, according to Ecofin Agency, although the report did not provide a detailed explanation for the delays.
Don’t Miss This:
Logistics Bottlenecks In China Cut Dangote’s 4,000-Truck CNG Rollout To Just 450
Some local media have cited high costs as a contributing factor. Conversion fees range from 900,000 to 1.6 million nairas per vehicle (roughly $670 to $1,191), while the cost of installing CNG stations is also considered steep.
Government data cited by Agence Ecofin indicates that the CNG sector attracted about $700 million in investment in 2024.
Authorities are exploring several measures to expand the sector, including policy and tax incentives designed to encourage private investment.
At the same time, rising CNG prices since 2023, following the removal of fuel subsidies, have raised concerns among some transport operators.
Don’t Miss This:
Electric Vehicles Gain Traction In Nigeria Despite Limited Charging Infrastructure
Image Credit: Arise News
