CNG adoption in Nigeria growing at unprecedented pace— Ahmed, PCNGI chair
The Executive Chairman of the Presidential Compressed Natural Gas Initiative (PCNGI), Barrister Ismaeel Ahmed, says the Federal Government is steadily building a sustainable and affordable alternative transport system through the nationwide adoption of Compressed Natural Gas (CNG). He said the initiative is rapidly expanding infrastructure, attracting private investment and driving mass adoption across the country. Ahmed attributed the progress to President Bola Tinubu’s confidence in the project and the administration’s Renewed Hope Agenda. He spoke on Channels Television’s ‘NewsNight’, where he addressed questions on the achievements, challenges and future direction of the initiative. David Lawani monitored the Interview.
What is the core mandate of your agency?
Our core mandate is to catalyse the adoption of natural gas as an alternative fuel and to promote electric mobility as a sustainable means of transportation. It is cheaper, cleaner and more affordable, serving as an ecosystem alternative to fossil fuels.
What was your reaction when President Bola Tinubu appointed you?
Honestly, when I was called, I initially thought, okay, oil and gas is not necessarily my forte. But during my discussion with Mr President, he said something very profound to me. We joked briefly about gas, and because I know the President well, I understood where he was coming from. He said that when your heart is in the right place, you will do well, even while learning on the job. He told me he had watched, mentored and tutored me over the course of about a decade and a half. He said he had seen the passion and patriotism in me and believed this was an opportunity to place me in charge of one of his signature projects, something that is very dear to him. One thing he said stood out clearly. He said, “I will be remembered as the President who removed fuel subsidy, but I also want to be remembered as the President who provided a sustainable alternative through CNG and electric mobility.” For me, that was very profound because it meant I was being entrusted with one of the projects he believes Nigerians will remember many years from now. It was an enormous responsibility, and I took it very seriously. I accepted the responsibility with gratitude and appreciation for the President’s confidence in me. I also understood immediately that I had to develop myself, learn quickly and build the capacity needed to drive something very important for this country.
Did the President give you a specific mandate?
For him, the mandate is quite simple. It is about creating a transportation system in Nigeria that is cheaper, cleaner and more efficient. It is also about gradually reducing dependence on fossil fuels to achieve energy security and independence, particularly in the transportation sector. He foresaw the challenges we are witnessing today and understood that fuel subsidy was not sustainable. It was draining the country financially, and Nigeria was heading towards a fiscal crisis. According to him, moving away from subsidies was necessary, but the manner in which we did so was equally important. President Tinubu is somebody who takes decisions based on what he believes serves the broader interest of Nigerians. He accepted the responsibility for making difficult decisions because he believed someone had to take charge of the country’s future. I feel honoured that he entrusted me with leading one of the major projects designed to provide relief and sustainability for Nigerians.
What situation did you meet on the ground when you assumed office?
Before I came in, the initiative had been in place for about a year and a half, and considerable work had already been done. Looking back at where we started, there were fewer than 10 refuelling stations across the country. Today, we have close to 75 refuelling stations nationwide, and the number continues to grow. We also have over 100 stations at various stages of development. From just a few conversion centres initially, we now have over 300 conversion centres across the country. Demand is increasing significantly, and I believe we have made remarkable progress. At the same time, we are mindful that Nigeria has a population of over 200 million people, with roughly 12 million vehicles, of which about 7 per cent are commercial. When you consider those figures, you realise the scale required is monumental. Still, from where we started a few years ago to where we are today, CNG has become a dominant national conversation. Many people are already using it, others are curious about it, and investors are increasingly showing interest. Of course, there is room for improvement. We still need to move at a much larger scale because energy transition takes time, especially when people are accustomed to doing things a certain way. But I believe Nigeria currently has one of the fastest adoption rates for CNG mobility worldwide. Countries such as Iran, Brazil, China and India took much longer periods to achieve widespread adoption, despite heavy government investment. In Nigeria, there has already been serious movement in that direction within just a few years. Nevertheless, there is still a lot more work to be done, and that is exactly what we are focused on.
Who benefits more from the initiative — public transport operators or private users?
I believe the public transportation sector is benefiting significantly, and as a government, our primary focus lies there because public transportation directly affects people. Operators in that sector are rapidly embracing the initiative. However, we are also seeing growing interest from private transport owners, including individual car owners and tricycle operators. One very important area is logistics and haulage. Major truck operators are already adopting CNG in large numbers. Even refinery owners and diesel marketers are moving in that direction, which clearly shows the level of confidence in the cost savings associated with CNG. Fast-Moving Consumer Goods companies are equally exploring the transition. What we are witnessing now is adoption at scale. Interest and demand are growing, and private-sector participation is increasing substantially.
How effective has the initiative been in easing inter-state transportation for Nigerians?
The process is still ongoing. During the last yuletide season, we engaged operators to provide transportation services either at significantly discounted rates or, where possible, free of charge. That effort is continuing. We are still in the early stages of widespread adoption, but people are increasingly moving in large numbers towards CNG as they become more aware of its benefits. The sharp increase in PMS prices and the high cost of diesel, which now ranges between N1,700 and N1,800 per litre, have prompted many people to consider alternatives seriously. Naturally, CNG is more affordable and readily available. Thankfully, the President and this administration had already begun thinking about this transition years before the current challenges intensified. What we are now seeing is a rapid rise in demand. Our biggest concern at the moment is ensuring that supply keeps pace with the growing demand, and that is exactly what we are working on. It requires substantial investment and large-scale infrastructure expansion.
Some Nigerians complain that, despite using CNG, certain transport operators still charge exorbitant fares. How is the government addressing this?
That concern is something we take very seriously, and we hear it frequently. We understand the frustration. We do not believe the solution is to start punishing or harassing operators. Instead, we need to increase the number of CNG vehicles. Once adoption moves from hundreds of thousands to millions of vehicles, compliance will naturally become easier to enforce. Our focus, therefore, is to continue expanding adoption while also reminding operators that the primary objective of this policy is to benefit Nigerians. The goal is not simply for operators to increase their profits; the savings are expected to cascade down to ordinary citizens. As a government, our priority is to scale up adoption to the point where fair pricing and compliance become unavoidable realities within the transport system.
As fuel prices continue to rise, more Nigerians are seeking alternatives. How are you addressing supply and infrastructure challenges?
Since I assumed office, we have focused on three major phases of implementation, all of which the President fully supports. One thing I always say is that anything unavailable can never truly be considered cheap. Affordability only comes with accessibility. Nigeria has abundant underground gas resources, but many parts of the country, especially in the North, remain underserved because the necessary pipeline infrastructure is not yet fully in place. Although NNPCL is working to expand infrastructure, there is still a long way to go. So the question became: what do we do in the meantime? The answer is attracting investment to build supply infrastructure, including pipelines and related facilities, so gas can reach areas where it is needed most. We are seeing rapidly growing demand. It is almost like a chicken-and-egg situation: investors want to see demand before committing funds, while consumers also need a reliable supply before fully adopting. Our role has been to break that cycle by encouraging supply while simultaneously driving adoption. We may not yet be at the scale we desire, but progress is happening. Today, for instance, Kano has five operational gas stations fully dispensing CNG. Six months ago, that was not the case. Katsina now has CNG stations, while Kaduna has multiple operational stations. All of these investments are private-sector driven, facilitated by the government’s guarantees and confidence. The government alone cannot fund a multi-billion-dollar industry. Our responsibility is to create the right environment for investors, and we are beginning to see strong participation. Northern businesspeople are now investing heavily in stations, truck partnerships, power plants, and other infrastructure. Companies like Dangote, NIPCO, and others are investing substantial resources to catalyse the market. The truth is that building supply infrastructure is highly capital-intensive, but it is necessary for a sustainable future.
What programmes are available for Nigerians interested in obtaining conversion kits?
We recently launched a major programme following the President’s directive to deploy 100,000 conversion kits across the country. We already had the kits in stock, but we also wanted to implement the programme sustainably, encouraging private-sector participation. Our goal is to encourage private investors not only to import these kits but eventually to localise assembly and manufacturing in Nigeria. That way, we can begin producing them domestically. To support this, we introduced financing and incentive programmes in collaboration with financial institutions such as Moniepoint, CreditCorp and the Nigerian Consumer Credit Corporation. We signed tripartite agreements that allow Nigerians to convert their vehicles with minimal upfront payment and spread the balance over a convenient repayment period. Depending on the arrangement with the financial institution, repayment can span several months without creating excessive financial pressure. The response has been very encouraging. Conversion centres have witnessed significant increases in patronage since the programme was unveiled. Many Nigerians had been waiting for a financing option that would give them flexibility and convenience without imposing unbearable burdens.
Can any Nigerian walk into a conversion centre to access the programme?
Yes, absolutely. Anybody can walk into a conversion centre and make enquiries. For example, Moniepoint representatives are usually available to discuss financing options and payment structures with prospective users. The programme is flexible, and Nigerians who want to take advantage of it are welcome.
Looking ahead to the end of 2026, how many CNG stations are you projecting nationwide?
First of all, the increasing number of stations reflects the strong relationship between demand and supply. The fact that investors are building stations shows that demand has already been created successfully. From fewer than 10 stations nationwide, we are now at about 75 stations, with over 150 at various stages of development. By the end of 2026, we hope another 80 stations will come on stream. That is our expectation.
Do you believe that the target is achievable?
Yes, I believe it is achievable because the interest and investment appetite are already there. Many investors have the resources and are prepared to deploy them because they can clearly see the demand. Our responsibility is to ensure that supply continues to match that demand. We are working hard to bridge the two. Personally, I do not like making exaggerated promises or setting unrealistic targets. I prefer to focus on the work itself. However, there are already numerous private sector-led efforts to establish gas stations across the country. It is important to understand that CNG is not just about dispensing stations alone. We must build an entire value chain — from gas supply infrastructure to mother stations, transportation networks and safe dispensing systems. That is the ecosystem we are trying to create, and I believe the momentum is already moving strongly in that direction.
