The Federal Government of Nigeria has successfully secured a $1 billion private investment aimed at expanding the country’s Compressed Natural Gas (CNG) sector, a move expected to enhance energy access, safety, and environmental sustainability. The announcement was made by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, during the launch of the Nigerian Gas Vehicle Monitoring System (NGVMS) in Abuja on Thursday.
Ekpo described the investment as a “key step” in the government’s ongoing efforts to modernize the CNG industry. “This initiative strengthens safety, accountability, and environmental integrity across the sector, ensuring that Nigeria harnesses its gas resources responsibly,” he said. The launch of the NGVMS is part of broader efforts to monitor and regulate gas-powered vehicles nationwide.
The NGVMS system will allow only vehicles converted at accredited facilities using certified kits to access CNG at approved stations. According to Ekpo, this approach ensures comprehensive oversight from vehicle conversion to refueling, safeguarding citizens while supporting the integrity of the country’s growing CNG ecosystem. He highlighted that the project aligns with President Bola Tinubu’s Renewed Hope Agenda and the Decade of Gas Initiative, which promote CNG as an affordable and sustainable energy alternative for Nigerians.
Ismaeel Ahmed, Chairman and CEO of the Presidential Initiative on CNG (PiCNG), confirmed the influx of private sector investments into the CNG value chain. “More than $1 billion has now been mobilized by private investors, signaling strong confidence in Nigeria’s gas sector and its potential to drive economic growth and energy transition,” Ahmed said at the Abuja pilot launch.
The development marks a major milestone in Nigeria’s drive toward cleaner energy solutions and economic diversification. Analysts predict that the investment, coupled with regulatory oversight through the NGVMS, could accelerate the adoption of CNG vehicles, reduce carbon emissions, and strengthen public trust in the country’s energy infrastructure.
source: guardian