Nigeria’s CNG sector attracts $980m in 18 months as Portland Gas launches major Abuja hub

Nigeria’s CNG sector attracts $980m in 18 months as Portland Gas launches major Abuja hub

The Presidential Compressed Natural Gas Initiative (PCNGI) has attracted $980 million investments within just 18 months, signalling rapid growth and investor confidence in Nigeria’s transition to cleaner energy.

Speaking on Wednesday at the launch of the Portland Gas Ltd/NASENI CNG Daughter Station and Auto Conversion Training Centre on Kubwa Expressway, Federal Capital Territory (FCT), PCNGI Chief Executive Officer, Mr. Michael Oluwagbemi, hailed the initiative’s swift progress.

“Just 18 months later, we have attracted over $980 million worth of investments in the CNG sector,” Oluwagbemi said.

He noted that major corporations including BUA Group and Nigerian Bottling Company (NBC) had collectively invested over ₦720 billion in acquiring CNG-powered trucks and establishing over 100 water-based CNG stations.

According to him, the number of CNG-powered vehicles in Nigeria has surged from 4,000 to nearly 100,000 in the same period—making it the fastest-growing energy sector in the country.

He emphasized that using CNG for transportation offers up to 90% cost savings compared to traditional fuels, calling for safeguards to ensure that auto-grade CNG is not diverted for power generation.

“We must protect CNG meant for vehicles from being channeled into power plants,” he warned.

In response, the House of Representatives assured stakeholders that legislative measures would be introduced to address the diversion issue.

Representing the Speaker, Hon. Tajudeen Abbas, Hon. Alexander Mascot stated, “The House will work on laws that ensure CNG designated for transportation is used solely for that purpose. Transitioning is not easy, but we’re committed to making it successful.”

First-of-its-kind gas hub

The newly commissioned Portland Gas/NASENI CNG hub is not just a fueling station—it also houses an auto-conversion centre, a training facility, and a refill station, making it a comprehensive one-stop solution for CNG services.

“This is what we call a full gas hub,” said Portland Gas CEO, Mr. Folajimi Mohammed. “We’ve integrated vehicle conversion, driver training, and fuel dispensing in one location.”

He added that the company has also secured approval to sell Liquefied Petroleum Gas (LPG) at the same facility, with a four-tonne capacity for cooking gas distribution.

Mohammed further disclosed that the cost of converting commercial vehicles to CNG has been fully subsidized by the PCNGI for members of the Nigerian Association of Road Transport Owners (NARTO), the National Union of Road Transport Workers (NURTW), and ride-hailing drivers from Uber and Bolt.

To support the growing demand, the Nigerian National Petroleum Company (NNPC) is fast-tracking completion of the Ajaokuta-Kaduna-Kano (AKK) gas pipeline to expand access to northern regions.

Strategic expansion and infrastructure

Executive Vice Chairman of NASENI, Mr. Khalil Halilu, said the hub’s location on the Kubwa Expressway was deliberate, as it links Abuja to both northern and southern corridors.

“This is a strategic move to demonstrate that CNG infrastructure is expanding rapidly. In partnership with the PCNGI, we plan to eliminate fuel queues at CNG stations within two years,” Halilu said.

He added that growing queues at CNG stations are a positive sign that more Nigerians are embracing the initiative, and the government remains committed to matching demand with infrastructure.

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