The Nigerian Midstream and Downstream Petroleum Regulatory Authority has revealed that over 50,000 vehicles in Nigeria have been converted to run on Compressed Natural Gas as part of efforts to reduce reliance on Premium Motor Spirit and address the rising cost of fuel.
This was disclosed by the Authority Chief Executive, Farouk Ahmed.
Ahmed explained that the NMDPRA has implemented deliberate measures to foster growth in the oil and gas industry, aligned with the Petroleum Industry Act (PIA) 2021.
He pointed out that a competitive market environment has been produced by the liberalisation of petroleum product prices, drawing in investments and fostering innovation.
By 2024, PMS prices had risen from N170 per litre to over N1,000 per litre after the petrol subsidy was removed in May 2023.
In response, the government launched the Presidential CNG Initiative (PCNGI), which promoted CNG as an affordable and sustainable substitute.
The Nigerian National Petroleum Company Limited was charged with driving CNG adoption through substantial infrastructural improvements.
Ahmed emphasised that the NMDPRA has been instrumental in advancing these efforts.
“Over the last year, the downstream regulator has helped stimulate 186 new conversion centres, increasing Nigeria’s conversion capacity by over 2500%. These conversions, alongside new purchases, have raised the Nigerian Gas Vehicles (NGV) population to an estimated 50,000 vehicles and trucks, and the numbers continue to grow daily,” he said.
Ahmed disclosed that Nigeria’s refueling capacity has expanded significantly, with over $400m invested in the construction of 86 “daughter” and 65 “mother” CNG refueling stations.
This expansion raised the number of refuelling stations nationwide from 20 to 56.
The effort also resulted in the establishment of standards and the Nigerian Gas Vehicle Monitoring System through collaboration among the PCNGI, NMDPRA, and the Standards Organisation of Nigeria.
The system is currently in its pilot phase and is slated for full implementation in 2025.
Looking ahead, the NMDPRA aims to achieve 100,000 vehicle conversions by 2025, focusing on major urban centres such as Lagos and Abuja.
Ahmed added, “To address the observed deficit in critical energy projects financing, the NMDPRA is supporting the establishment of the Africa Energy Bank, which is expected to be a game changer in enabling investment in critical infrastructure across the continent.”
He emphasized that Nigeria is strategically positioned to become Africa’s energy hub due to its competitive financing framework and a favourable regulatory environment.
The NMDPRA reiterated its commitment to partnering with PCNGI and other stakeholders to expand CNG infrastructure and ensure that Nigerians benefit from cleaner and more affordable energy solutions.
