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Federal Govt Boosts Push To Close CNG Refuelling Gap, Unveils New Abuja Station

LEADERSHIP News by LEADERSHIP News
4 minutes ago
in Business
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BY CHUKWUKA ERASMUS, Abuja

The federal government has stepped up efforts to close gaps in Nigeria’s Compressed Natural Gas (CNG) refuelling network with the inauguration of a new station in Abuja, aimed at improving access to alternative fuel and supporting moves to reduce transportation costs.

The facility, located along Saint George Akume Way, Karu, was developed through a partnership involving the State House, the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), and Rolling Energy Ltd.

Speaking at the inauguration on Friday, the permanent secretary, State House, Temitope Fashedemi, said the project would provide motorists with an additional refuelling option, ease pressure on existing stations and encourage private-sector participation in CNG infrastructure development.

The station was established by rehabilitating an abandoned State House petrol facility and converting it into an integrated CNG refuelling and vehicle conversion centre.

Its opening comes amid a broader federal push to expand CNG infrastructure, with the government identifying additional refuelling stations as essential to widening adoption and reducing transportation costs.

Fashedemi described the partnership as a practical demonstration of President Bola Tinubu’s commitment to promoting CNG as a cheaper alternative fuel through the utilisation of Nigeria’s abundant natural gas resources.

He explained that the State House made the existing facility available, while Rolling Energy financed its renovation and installed the equipment required for CNG operations.

According to him, the arrangement enabled the rehabilitation of the facility without direct public expenditure on its renovation and installation.

“The provision of CNG infrastructure should be driven largely by private sector investment rather than government ownership and direct business operations,” he said.

Fashedemi said Rolling Energy was selected because of its experience and capacity, having independently established and operated CNG refuelling facilities.

He expressed the hope that the partnership would encourage other investors to develop similar projects and expand access to alternative fuel.

The permanent secretary also disclosed that the State House had acquired about 10 hybrid vehicles, alongside hybrid shuttle buses operating within the Presidential Villa, as part of efforts to support the initiative.

He said eligible vehicles belonging to some State House employees would be assessed for conversion to CNG-hybrid systems in the coming weeks.

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Fashedemi added that Rolling Energy provided free CNG refuelling to motorists in surrounding communities for more than a week during the testing of the facility.

He stressed the need for Nigeria to derive greater economic value from its natural gas resources, noting that substantial quantities had been lost through decades of flaring.

Also speaking, the executive chairman of Pi-CNG & EV, Ismaeel Ahmed, said expanding refuelling infrastructure remained critical to making CNG accessible to more Nigerians.

He said the country had about 106 operational CNG refuelling stations, with additional facilities at various stages of development or awaiting regulatory approval.

Ahmed said that although CNG and electric vehicle adoption was growing, infrastructure investment needed to accelerate to meet the requirements of Nigeria’s population and vehicle fleet.

He urged entrepreneurs and private-sector operators to invest in refuelling and conversion facilities, saying wider infrastructure coverage would give motorists more fuel choices and support efforts to lower transport costs.

The Pi-CNG & EV chairman said government-backed expansion plans were intended to bring more stations into operation and extend access beyond existing service locations.

On the new facility’s capacity, Rolling Energy’s chief executive said the integrated refuelling unit incorporated its compressor and dispensing systems into a single installation.

He explained that its double-nozzle dispensers would allow motorists to refuel from both sides, with capacity to serve about 150 vehicles daily, depending on cylinder sizes and operating pressure.

The facility also houses a vehicle conversion centre equipped with two service pits and designed to convert about 12 vehicles daily.

The company said combining conversion and refuelling services at the site would provide motorists with access to both services in one location.

Rolling Energy said it was targeting nearly 15 CNG refuelling and vehicle conversion facilities nationwide by the end of 2026.

It added that two further stations were expected to be inaugurated in Kano and another two in Kaduna, as it continued discussions on additional partnerships with Pi-CNG & EV.

 

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