The National Automotive Design and Development Council (NADDC) has disclosed that 81 companies have so far been licensed to retail Compressed Natural Gas (CNG) across Nigeria, signalling growing private-sector participation in the country’s transition to alternative fuels.
The development comes as the Federal Government continues to promote CNG as a cheaper and cleaner alternative to petrol and diesel, particularly for transportation.
The growing number of licensed retailers is expected to improve access to CNG and support the expansion of infrastructure required for wider adoption of gas-powered vehicles.
The NADDC said the development would also encourage investment in the automotive sector and contribute to efforts to reduce transportation costs.
Nigeria has significant natural gas reserves, and authorities have increasingly promoted CNG as part of efforts to maximise the value of the resource domestically while reducing dependence on imported petroleum products.
However, challenges including limited refuelling infrastructure, vehicle conversion costs and public awareness remain key issues that must be addressed to achieve widespread adoption.
The licensing of the 81 firms is therefore seen as an important step towards building a stronger CNG distribution network and supporting Nigeria’s broader energy transition.