The Federal Government of Nigeria has successfully secured over $2 billion in private-sector investment aimed at developing the country's Compressed Natural Gas (CNG) infrastructure. This initiative is part of a broader effort to provide a more affordable alternative to conventional fuels amid rising transportation costs for Nigerians.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, announced the investment during a recent statement, highlighting the government's commitment to expanding the gas value chain. The initiative is expected to significantly enhance transportation options across the nation, with more than 120,000 vehicles already converted to run on CNG since the launch of the Presidential Initiative on CNG in 2023.

The initiative has also led to the establishment of over 400 certified vehicle conversion centres and 90 CNG refuelling stations throughout Nigeria. These developments are crucial in building a comprehensive CNG ecosystem that supports a transition to cleaner energy sources in the transportation sector.

As part of the ongoing efforts, the government has deployed 655 CNG-powered buses and 5,123 CNG tricycles, which are now operational in both commercial and public transportation networks. This deployment is seen as a significant step towards making CNG a practical and widely accepted fuel option for motorists and transport operators across the country.

Minister Ekpo noted that the adoption of CNG is no longer just a future prospect but is rapidly becoming a viable option for many. He emphasized that commercial transport operators and private vehicle owners have begun to report substantial savings on fuel costs, which in turn enhances their profitability.

Looking ahead, the government has ambitious plans to expand its CNG network further. Ekpo revealed that President Bola Tinubu has directed the development of an additional 500 CNG refuelling stations, aiming to increase the total number to 1,000. This expansion is designed to improve accessibility to CNG and encourage more vehicle conversions among Nigerians.

The Federal Government is collaborating with various stakeholders, including state governments, transport unions, and investors, to establish dedicated CNG corridors and extend infrastructure to underserved communities. The overarching goal is to ensure that the benefits of CNG translate into lower transportation costs, thereby easing the financial burden on households and enhancing economic productivity.

In a related development, President Tinubu has urged both federal and state governments to work together to lower public transport fares nationwide, with expectations that the impact of reduced transportation costs will be felt by Nigerians starting from October 1, 2026. This initiative is aimed at passing the savings from CNG and electric vehicles directly to commuters, providing much-needed relief from the high costs of transportation.