The Presidential Compressed Natural Gas Initiative (P-CNGI) has introduced a new framework to scale up the nationwide supply of compressed natural gas (CNG), in collaboration with the Nigerian National Petroleum Company Limited (NNPC Ltd.), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Gas Aggregation Company of Nigeria (GACN).
The Mobility-CNG Supply Framework is designed to ensure a steady, affordable, and sufficient supply of CNG across the country, with a strong emphasis on the transport sector.
Speaking at the launch and implementation event held on Tuesday in Abuja, P-CNGI Programme Director Michael Oluwagbemi said the framework introduces a transparent, concessionary pricing structure, as reported by the News Agency of Nigeria (NAN).
According to him, the model reflects upstream and midstream costs while maintaining low prices for end-users.
“The Presidential Compressed Natural Gas Initiative (P-CNGI), says the Mobility-CNG Supply Framework will ensure affordable, uninterrupted and adequate autogas supply to end-users in the country,” the NAN report read in part.
It added, “The framework is being implemented by the P-CNGI in collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian National Petroleum Company Limited (NNPC Ltd.) and Gas Aggregation Company of Nigeria Ltd. (GACN).”
Oluwagbemi stated that the framework supports Nigeria’s broader energy reforms by promoting domestic gas use, advancing cleaner fuel alternatives, and cutting transport costs in the post-subsidy era. Approved by the NMDPRA in 2024, it also prevents arbitrage by ensuring autogas allocations are not diverted to industrial or power-generation purposes.
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The P-CNGi Program Director highlighted significant infrastructure growth under the initiative, with daughter stations increasing from 20 to over 65. Two new BOVAS stations opened in the third week of June in Ibadan, while 28 more are scheduled to launch soon to meet rising demand.
- The framework also includes regulatory safeguards and supply chain oversight. GACN has secured 40 million standard cubic feet per day (mscfd) of gas—20 mscfd already in use, with another 20 mscfd to be deployed.
- Talks are ongoing with upstream producers, alongside collaboration with the NUPRC to unlock underutilised gas assets. A fleet of high-capacity CNG trailers will move gas from mother stations to daughter and retail outlets.
- According to the Strategy and Business Development Coordinator at P-CNGI, Omolara Obileye, the initiative has attracted over $500 million in investment and trained more than 2,500 technicians for vehicle conversions.
She added that P-CNGI now operates in 21 states, with 10 more set to join in the coming months. This expansion is expected to ease petrol demand and generate thousands of jobs across the autogas value chain.
