The Federal Government is targeting $1 billion in annual investments to expand Nigeria’s Compressed Natural Gas (CNG) infrastructure, aiming to lower transport costs and food prices nationwide.
Michael Oluwagbemi, Programme Director of the Presidential CNG Initiative, disclosed this at the launch of a new CNG Conversion Centre in Mile 2, Lagos.
“We are on track for $1 billion this year,” he said, revealing that over $500 million has already been injected into the sector, with key contributions from Greenville, NIPCO, AYM Shafa, Femadec Energy, and government-backed infrastructure funds.
He explained that the initiative extends beyond the South. “Our food comes from the North, and we want cheaper food in the South. That’s only possible when we reduce the cost of transportation through affordable energy like CNG.”
Oluwagbemi compared the ongoing expansion to Nigeria’s early GSM rollout, citing private investment as the primary growth driver.
Usman Teslim, Secretary of the Lagos NURTW, commended the effort. “This is a relief to drivers. Instead of parking their vehicles for days, conversions now take three to four hours,” he said.
He noted that PCNG-branded buses have cut fares by up to 50 percent. “These buses are not just symbols of change; they’re delivering real economic relief.”
