The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced a remarkable increase in the country’s Compressed Natural Gas (CNG) conversion capacity, which surged by over 2,500 percent in 2024.
This development was highlighted by Mr. Farouk Ahmed, the Chief Executive of NMDPRA, during the inaugural Petroleum Industry Stakeholders’ Forum held in Abuja.
Mr. Ahmed attributed this growth to the support provided to the Presidential Compressed Natural Gas Initiative (PCNGI), which facilitated the establishment of 186 new conversion centers across Nigeria.
He emphasized that these initiatives are crucial for enhancing the country’s CNG infrastructure, particularly in major urban centers like Lagos and Abuja, with a target of achieving up to 100,000 conversions. Additionally, there are plans to promote the development of Nigeria Gas Vehicles (NGVs) in various states.
The NMDPRA has recognized CNG as a viable alternative to petrol, incentivizing its adoption. As a result of these conversions and new vehicle purchases, the population of gas-powered vehicles in Nigeria is estimated to be between 30,000 and 50,000 and continues to grow.
Investment in CNG infrastructure has also seen substantial financial backing, with over $400 million secured for the construction of 86 new daughter stations and 65 mother stations. This expansion has increased Nigeria's refueling capacity from 20 to 56 stations.
Furthermore, Mr. Ahmed noted that collaborative efforts among NMDPRA, PCNGI, and the Standards Organisation of Nigeria (SON) have led to the formulation of standards and the establishment of an NGV Monitoring System, which is expected to be launched this year. The NMDPRA is also working with other organizations to ensure that CNG growth is pursued safely and sustainably.
Despite these advancements, Mr. Ahmed acknowledged several challenges facing the initiative. These include issues related to improper licensing for petroleum handling facilities and insufficient collaboration for open access to facilities.