Nigeria's Energy Sector Reforms Face Hurdles Amidst CNG Push

President Tinubu's push for Compressed Natural Gas (CNG) adoption encounters infrastructure gaps, technical capacity issues, and low public awareness across northern states, despite government initiatives.

NGN Market

Written by NGN Market

·4 min read
Nigeria's Energy Sector Reforms Face Hurdles Amidst CNG Push

Key Highlights

  • President Tinubu orders rapid nationwide deployment of 100,000 CNG vehicle conversion kits.
  • Infrastructure shortages, limited technical capacity, and low public awareness pose challenges to CNG adoption in northern states.
  • Kano inaugurates a CNG vehicle conversion centre, part of a nationwide network of 21 planned centres.
  • Jigawa State approves construction of four conversion centres and trains 120 artisans in vehicle conversion.
  • Kaduna State reports significant fare savings from CNG-powered buses, transporting over 1.3 million passengers between July and November 2025.

President Bola Tinubu has directed the swift nationwide deployment of 100,000 compressed natural gas (CNG) vehicle conversion kits as part of the Presidential Initiative on Compressed Natural Gas (PiCNG). This initiative aims to cushion the impact of petrol subsidy removal by offering cheaper and cleaner fuel alternatives.

However, an investigation across several northern states, including Kano, Katsina, Kaduna, Plateau, and northeastern states, reveals uneven readiness on the ground. Infrastructure shortages, limited technical capacity among mechanics, and low public awareness are identified as significant hurdles that could slow the adoption of the government's alternative fuel program.

In Kano State, a CNG vehicle conversion centre has been inaugurated in Gundutse, Kura Local Government Area, intended to serve as a conversion hub and training centre for technicians. This facility is part of a planned nationwide network of 21 centres, with 15 already equipped.

Despite the government's push, the Nigeria Automobile Technicians Association president, Magaji Sani, highlighted the need for financial support and specialized tools for mechanics to undertake these conversions. He urged the government to provide soft loans for technicians.

Katsina State has launched its first gas refueling facility, the Greenville LNG–CNG Hub Station. Governor Dikko Umaru Radda described it as a critical step towards energy security and economic growth, though analysts note that a single station may not be sufficient for widespread adoption.

Jigawa State appears to be progressing faster, with Governor Umar Namadi approving the construction of four conversion centres and allocating ₦117 million for a pilot centre. The state has also trained 120 local artisans and youth in vehicle conversion, maintenance, and safety procedures, with potential fuel cost reductions of about 60 percent for residents.

In contrast, Kebbi State intends to implement the initiative soon, while Zamfara State had not provided information as of press time.

Kaduna State has already demonstrated the economic benefits of CNG adoption. Its transport authority reported that CNG-powered buses transported 683,650 passengers between July and September 2025, generating estimated fare savings of ₦738.8 million. An additional 626,710 passengers saved about ₦667.2 million in October and November 2025, with the fleet of 30 buses carrying an average of 18,426 passengers daily.

Plateau State, however, shows a significant awareness gap, with local technicians reporting no prior knowledge of CNG vehicle conversions. Industry observers point to the absence of refuelling stations and trained technicians as complicating factors.

Findings in the northeast reveal infrastructure gaps, with only Borno and Adamawa states having electric vehicle charging centres, and a CNG station under construction in Borno. Residents expressed concerns about the limited number of service centres and the operational status of existing charging stations.

Despite these challenges, Borno State Governor Babagana Zulum's administration is commended for promoting electric vehicle infrastructure, with charging stations in Maiduguri and the gradual appearance of non-fossil fuel vehicles. However, high battery costs, limited charging infrastructure, and range limitations remain obstacles for electric vehicles.

Yobe State has installed electric charging stations, but operations have not yet commenced due to administrative delays.

Nationally, the PiCNG initiative reports that approximately 77 CNG refuelling stations are under development along major transport corridors, with plans to extend the network towards Maiduguri.