Rising fuel prices boost CNG interest

The rising cost of fuel in Nigeria has increased interest in compressed natural gas (CNG), a cheaper alternative for vehicle owners. This shift is driven by the removal of fuel subsidies, which led to higher pump prices and a growing search for more affordable options.

Kano’s rapid CNG expansion

In northern Nigeria, the state of Kano has seen a dramatic increase in CNG refueling stations, going from zero to twelve in just one year. This growth is attributed to private investment, with the company NU Synergy playing a major role in the development.

Integrated CNG stations improve access

NU Synergy has established two new CNG stations in Kano, located on Zaria Road and in the Mariri neighborhood, as well as a vehicle conversion center. These stations offer both refueling and conversion services, making it easier for drivers to switch to CNG.

Government initiative supports CNG growth

Ismaeel Ahmed, executive president of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), praised the rapid progress in Kano. He noted that NU Synergy had contacted the initiative just four months before inaugurating a station in the city.

Nigeria’s gas potential

Ahmed emphasized that Nigeria has vast natural gas reserves, with more than 200,000 billion cubic feet of proven reserves. He sees CNG as a way to reduce transportation costs and attract investment, aligning with the national initiative launched in 2023.

National CNG infrastructure expansion

Pi-CNG & EV reports over 120,000 vehicles converted to CNG and more than 90 stations across 26 states and the capital, Abuja. The goal is to expand this network nationwide, with the Tinubu administration planning to build 500 new CNG stations by the end of 2027.

Cost remains a barrier to adoption

Despite the financial benefits of CNG, which is 40 to 60 percent cheaper per kilometer than gasoline, the conversion cost of between $670 and $1,190 per vehicle still deters many drivers. As of August, the country had not yet reached the target of one million CNG conversions by the end of 2027.