Nigeria Expands Gas-to-Transport Drive With CNG Hub at Obafemi Awolowo University

Nigeria Opens CNG Station at OAU, Accelerates Gas-Powered Transport Push

Nigeria Deepens Gas Push With Campus CNG Rollout

Nigeria has taken another step toward cleaner transport, commissioning a compressed natural gas refuelling facility at Obafemi Awolowo University as part of a broader strategy to expand domestic gas utilisation.

The project, backed by the Midstream and Downstream Gas Infrastructure Fund (MDGIF), is one of 20 CNG refuelling stations being deployed across federal universities through an equity partnership with FEMADEC Energy Limited.

Speaking at the commissioning ceremony, MDGIF Executive Director Oluwole Adama described the development as a tangible milestone in the country’s energy transition. “This project represents more than the commissioning of a refuelling station. It symbolises progress, partnership and purpose,” he said.

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Universities as Test Beds for Transition

Vice-Chancellor Adebayo Simeon Bamire said the new infrastructure would support research and innovation in alternative fuels, while strengthening the university’s engagement with its surrounding community.

To accelerate adoption, First Lady Oluremi Tinubu donated 50 CNG-powered buses to the university. PiCNG added 10 CNG tricycles, expanding access to lower-cost transport options for students and staff.

Executives at FEMADEC Group said the partnership underscores a commitment to deploy “safe, efficient and scalable” gas infrastructure through public-private collaboration.

A Broader Investment Blueprint

MDGIF, managed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority and chaired by Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo, aims to catalyse more than $575 billion in gas-sector investment.

In October 2024, the federal government committed ₦122 billion—about $81 million at prevailing rates—to six companies to expand gas distribution. The fund has also secured a $500 million mobilisation agreement with African Export-Import Bank and partnered with Endurance Group to deploy 500 CNG stations nationwide by 2028.

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Gas as a Bridge Fuel

For policymakers, the rollout at Ile-Ife signals a growing reliance on gas-powered mobility as a bridge between fossil fuels and cleaner energy systems. Officials say the new facility will reduce transport costs on campus, cut emissions and deepen Nigeria’s domestic gas market.

As Africa’s largest oil producer seeks to balance fiscal pressures with climate commitments, the campus-based CNG expansion illustrates how incremental infrastructure projects are becoming central to its long-term energy transition strategy.

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