Nigeria Accelerates CNG Roll Out As NIPCO Boosts Investment In Gas Projects

Nigeria has made investments in the Compressed Natural Gas (CNG) space with a rollout significantly expanded in August 2026, as government intentionally moves to reduce cost of transportation with new fuel transition.

According to data by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the number of operational refuelling stations rose to 176 and vehicle conversions reaching 78,900.

This figure is supported by indigenous companies investment in the industry.

Specifically, NIPCO Group says it has invested approximately two billion dollars in Nigeria’s oil and gas sector, covering pipelines, CNG, LPG and retail infrastructure.

Mr Nagendra ‌‌Verma, Managing Director, NIPCO, disclosed this while updating the media on the company’s developments in Nigeria’s oil and gas sector.

“Over the years, the group has invested approximately two billion dollars in Nigeria’s oil and gas sector,” Verma said.

He said the investments covered pipeline infrastructure, CNG facilities, fuel retail outlets, Automotive Gas Oil and Premium Motor Spirit infrastructure.

They also included LPG and propane facilities, logistics, distribution networks and other energy-related investments, according to the managing director.

“NIPCO investments demonstrated its commitment to supporting Nigeria’s energy security and infrastructure development,” he said.

Verma said NIPCO currently operates about 700 PMS, AGO and LPG retail outlets across Nigeria, strengthening its downstream energy market presence.

He said the company had also secured Gas Distribution Licences under the Petroleum Industry Act for four gas distribution zones.

“The licences provide a regulatory and infrastructure platform for NIPCO’s continued expansion in Nigeria’s gas sector,” Verma said.

He said NIPCO was focused on sustainably monetising Nigeria’s abundant natural gas resources through infrastructure development and increased access to alternative fuels.

Verma described NIPCO as a private-sector pioneer in developing LPG storage and distribution infrastructure in Nigeria.

Meanwhile, the NMDPRA factsheet showed that 65 conversion centres were operational nationwide during the month, while 15,300 conversion kits had been distributed under the national CNG programme, reflecting continued expansion of alternative fuel infrastructure.

The Agency’s August data also pointed to broader improvements across Nigeria’s oil and gas value chain, including higher crude oil production, stronger domestic refining activity and increased supply of petroleum products and cooking gas.

Crude oil production rose to 1.51 million barrels per day (bpd) in August from 1.49 million bpd recorded in July, while condensate production stood at 171,143 bpd, bringing total oil and condensate output to about 1.68 million bpd.

Natural Gas Liquids (NGL) production was reported at 211,226 bpd, while 79,924 metric tonnes of Liquefied Petroleum Gas (LPG) were produced during the month.

The report showed that LPG supply reached 103,440 metric tonnes in August, up from 62,515 metric tonnes in the corresponding period of 2025.

In the gas sector, 13.48 billion standard cubic feet (SCF) of natural gas was supplied for power generation, while 31.65 billion SCF went to gas-based industries during the month.

The report showed that LPG supply reached 103,440 metric tonnes in August, up from 62,515 metric tonnes in the corresponding period of 2025. In the gas sector, 13.48 billion standard cubic feet (SCF) of natural gas was supplied for power generation, while 31.65 billion SCF went to gas-based industries during the month.

The regulator also reported sustained activity in domestic refining. Petrol production reached 1.69 billion litres, while diesel production stood at 845 million litres.

Aviation fuel output was put at 222 million litres, with Low Pour Fuel Oil production at 102 million litres and Household Kerosene at 14 million litres.

On fuel availability, average petrol supply increased to 73.67 million litres per day, compared to 70.13 million litres per day recorded in July.

Diesel supply averaged 14.67 million litres daily, aviation fuel stood at 2.72 million litres per day, Household Kerosene averaged 873,312 litres per day, while LPG availability reached 3.33 million kilograms daily.

The factsheet further showed that Nigeria’s downstream distribution network comprised 1,025 active filling stations, 171 operational gas plants, and 62 licensed petroleum depots supporting nationwide fuel distribution during the period under review.