Nigeria’s CNG push opens new private investment pipeline in gas sector

Mkpoikana Udoma

Port Harcourt — Nigeria’s downstream gas sector is witnessing a fresh wave of capital inflows and infrastructure expansion as the Federal Government accelerates its Compressed Natural Gas, CNG rollout, positioning gas as the next major investment frontier in the country’s energy market.

At the centre of the latest push is a high capacity CNG booster station in Jahi, Abuja, developed by Rolling Energy Limited in partnership with the Midstream and Downstream Gas Infrastructure Fund, MDGIF, one of four new investment projects being activated across Nigeria’s major economic corridors.

The broader rollout, spanning Abuja, Lagos, and Owerri, is being interpreted by industry stakeholders as a coordinated strategy to de-risk private investment in gas infrastructure while expanding domestic demand for compressed natural gas as an alternative transport fuel.

Representing President Bola Ahmed Tinubu, Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, at the commissioning of the CNG station, said the initiative is central to Nigeria’s economic transformation agenda.

“This project represents a major milestone in our transition to cleaner, more affordable, and sustainable energy solutions,” Ekpo said on behalf of the President, adding that the facility aligns with the administration’s Decade of Gas policy aimed at “driving industrialization, energy security, and economic diversification.”

The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, says it is tightening oversight of the expanding gas value chain to ensure safety, efficiency, and investor confidence as new players enter the market.

“The Authority remains committed to ensuring effective regulation, safety, and compliance in the nation’s growing gas sector,” said Authority Chief Executive, Mallam Rabiu Umar, represented by Abuja Regional Coordinator, Hajiya Maijidda Abdulkadir.

From the investment financing side, the MDGIF says its focus is to catalyse private sector participation and expand energy access through commercially viable gas infrastructure projects.

“The Fund remains committed to supporting projects that drive energy access, economic growth, and national development,” said MDGIF Executive Director, Mr Oluwole Adama, represented by Dr Hussaini Basaka.

Private sector operators are already signalling growing confidence in the emerging CNG market. Chairman of Rolling Energy Limited, Mr Mubarak Umar Dambata, disclosed the commercial scale of the Jahi facility, noting its strong throughput capacity.

“The CNG station has a sales capacity of 1,000 Standard Cubic Metres per hour and can serve over 1,000 CNG vehicles and 100 trucks daily, thereby significantly improving gas supply and distribution in Abuja and surrounding areas,” Dambata said.

Policy drivers behind the rollout say the programme is designed to reduce Nigeria’s dependence on expensive imported fuels while building a cleaner domestic energy economy.

Executive Chairman of the Presidential Initiative on CNG and Electric Vehicles, Barrister Ismaeel Ahmed, said the infrastructure expansion reflects a long-term structural shift in transport energy.

“This project reflects the Tinubu administration’s long-term vision of reducing dependence on costly conventional fuels through the adoption of cleaner and more sustainable alternatives,” he said.

On the broader national rollout, Special Adviser to the President on Media and Public Communications, Mr Sunday Dare, said the gas infrastructure push is part of a wider reform and delivery programme.

“The Federal Government has commissioned 25 projects nationwide to commemorate the third anniversary of the Tinubu administration, with several focused on clean energy and gas infrastructure development,” Dare said.

SweetCrude Reports noted that the coordinated deployment of CNG stations across key cities signals the early formation of a structured domestic gas market, where infrastructure, regulation, and private capital are increasingly aligning to reshape Nigeria’s downstream energy economics.