MDGIF To Build 500 CNG Refuelling Stations Across Nigeria in Next 3 Years

Abuja, Nigeria — November 17, 2025

In a major step toward accelerating Nigeria’s energy transition goals, the Midstream and Downstream Gas Infrastructure Fund (MDGIF) has concluded discussions with a leading Chinese manufacturer to deploy 500 Compressed Natural Gas (CNG) refuelling stations across the country within the next three years.

This initiative aligns with the Federal Government’s resolve to deepen CNG utilization nationwide, reduce reliance on petrol, and enhance the availability of cleaner, more affordable alternative fuels for transportation.
According to a statement by the Executive Director of MDGIF, Oluwole Adama, the discussions focused on the establishment of a Federal Government–backed Special Purpose Vehicle (SPV) promoted by MDGIF and its investment partners. The SPV will serve as the central platform for mobilizing financing, coordinating implementation, and ensuring efficient delivery of the nationwide infrastructure rollout.

Under the agreement, the Compressed Natural Gas Auto Mobility Infrastructure Company will be created to oversee the development and deployment of the 500 integrated CNG refuelling stations. The company will also be responsible for establishing Liquefied Compressed Natural Gas (LCNG) facilities, developing gas supply infrastructure, and providing CNG and Liquefied Natural Gas (LNG) transportation trucks, effectively forming a virtual gas pipeline system across all 36 states and the Federal Capital Territory.
Adama noted that the project is designed to address current bottlenecks in the CNG market. Long queues have become a frequent sight at existing CNG filling stations due to rising demand and limited supply outlets. The expansion will increase the number of refuelling points, reduce wait times, and ensure a more reliable supply of CNG through a strengthened logistics and distribution network.

He added that the initiative is a significant milestone in the government’s broader decarbonization and energy diversification strategy, which aims to reduce transportation costs, lower emissions, and support economic growth.

With implementation expected to begin shortly, the MDGIF-led project marks one of the most ambitious CNG infrastructure expansions in Africa—positioning Nigeria as a regional leader in clean mobility and midstream gas development.