Nigeria’s compressed natural gas (CNG) sector has attracted more than $500mn in investment and created over 10,000 direct jobs in under one year, News.ng has reported.

The growth in jobs comes as the federal government intensifies efforts to promote alternative energy transportation. The Presidential Compressed Natural Gas Initiative (P-CNGI), launched in May 2024 under the directive of President Bola Tinubu, has facilitated the nationwide establishment of 255 vehicle conversion centres and 53 operational CNG distribution stations. The programme also supports the adoption of electric vehicles and seeks to reform regulatory frameworks to encourage growth in sustainable transport.

Michael Oluwagbemi, programme director and chief executive officer of P-CNGI, said Nigeria’s natural gas vehicle population has surged from approximately 4,000 to nearly 100,000 within a few months, resulting in significantly increased demand at fuelling stations, News.ng writes.

Private sector investment has played a key role in this expansion. Companies such as AY Shafa and Femadec are jointly developing 30 CNG daughter stations, while Femadec is also leading a project to deploy CNG infrastructure at 20 universities. Greenville Energy has committed to building 175 stations, including in remote areas of northern and southeastern Nigeria.

Additional support comes from the Midstream and Downstream Gas Infrastructure Fund (MDGIF), which has awarded equity to 10 new companies and earmarked NGN123bn ($78mn) for sectoral development in 2024. State-owned Nigerian National Petroleum Company Limited and private firms, including Bovas and NIPCO, are also expanding their distribution networks as part of the national energy transition plan.