Precious Anga
Lagos — Nigeria’s compressed natural gas, CNG, transition is gaining momentum, with the number of operational refuelling stations rising to 176 and vehicle conversions reaching 78,900 as the Federal Government pushes gas as a cheaper alternative fuel for transportation.
The latest figures from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, showed that 65 CNG conversion centres were operational nationwide in August, while 15,300 conversion kits had been distributed under the national CNG programme.
The expansion has also attracted significant private-sector investment, with NIPCO Group disclosing that it has invested about $2 billion in Nigeria’s oil and gas industry.
Managing Director of NIPCO, Nagendra Verma, disclosed this while giving an update on the company’s investments and operations in Nigeria.
“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, AGO, and Premium Motor Spirit, PMS, infrastructure.
They also include LPG and propane facilities, logistics, distribution networks and other energy-related infrastructure.
According to Verma, the investments demonstrate NIPCO’s commitment to supporting Nigeria’s energy security and infrastructure development.
The company currently operates about 700 PMS, AGO and LPG retail outlets across the country, further strengthening its downstream distribution network.
Verma also disclosed that NIPCO had 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,” he said.
He said the company was focused on monetising Nigeria’s abundant natural gas resources through infrastructure development and wider access to alternative fuels.
Verma also described NIPCO as a private-sector pioneer in the development of LPG storage and distribution infrastructure in Nigeria.
The latest NMDPRA data showed that the expansion of alternative fuels was occurring alongside increased activity across the wider oil and gas value chain.
Crude oil production rose to 1.51 million barrels per day, bpd, in August, from 1.49 million bpd in July, while condensate production stood at 171,143 bpd, taking combined crude and condensate output to about 1.68 million bpd.
Natural Gas Liquids, NGL, production stood at 211,226 bpd, while LPG production reached 79,924 metric tonnes during the month.
LPG supply increased to 103,440 metric tonnes in August, from 62,515 metric tonnes in the corresponding period of 2025.
The regulator reported that 13.48 billion standard cubic feet, scf, of natural gas was supplied to power generation, while gas-based industries received 31.65 billion scf during the month.
Domestic refining activity also remained significant, with petrol production reaching 1.69 billion litres and diesel output standing at 845 million litres.
Aviation fuel production was 222 million litres, while Low Pour Fuel Oil output stood at 102 million litres and Household Kerosene production at 14 million litres.
Average daily petrol supply rose to 73.67 million litres in August, compared with 70.13 million litres in July.
Diesel supply averaged 14.67 million litres per day, aviation fuel 2.72 million litres per day, and Household Kerosene 873,312 litres per day.
LPG availability stood at 3.33 million kilogrammes daily.
The NMDPRA factsheet further showed that Nigeria had 1,025 active filling stations, 171 operational gas plants and 62 licensed petroleum depots supporting downstream fuel distribution during the period.
