The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called on the Federal Government to prioritize financial support for the expansion of Compressed Natural Gas (CNG) infrastructure, highlighting that the lack of refuelling stations is hindering the adoption of the cleaner, cheaper fuel alternative.
According to IPMAN’s National Vice President, Hammed Fashola, while the association is eager to contribute to the government’s CNG initiative by converting its filling stations into CNG refuelling points, the high capital requirement remains a significant barrier. Fashola stressed that without substantial financial backing, this ambitious project will struggle to take off.
“In IPMAN, we have been soliciting for a situation whereby we have a bank of oil and gas like we have the Bank of Industry. If we have a bank of oil and gas, it will be able to understand our language and understand the dynamic in the business. No marketer can go to the Bank of Industry and get anything because it’s not made for us.
“But when you look at the huge investment required for our business now, you will agree with me that we need the government’s backing. We need the government’s help by way of a grant.
“Look at the CNG programme that is going on. IPMAN is fully in support and we are even presenting our stations now for CNG. And when you look at that CNG alone, it is capital intensive,” Fashola said.
He noted that the current scarcity of CNG refuelling stations has slowed down the Federal Government’s drive to encourage Nigerians to transition from petrol to CNG-powered vehicles, particularly following the removal of fuel subsidies in 2023.
“Without CNG stations, people will not be able to access it. Even when you convert your car or your truck, the other problem is, where do you get it refilled?,” he explained.
Fashola revealed that IPMAN has already offered its stations for the CNG programme, arguing that the government should take advantage of the existing infrastructure. “The stations are already there. The facilities are already there, it’s just an add-on. But it is capital-intensive. The government needs to look at this and consider how we can partner together and make this thing work.”
The association also raised concerns about the long queues at the few operational CNG stations, with trucks and vehicles often waiting days to refill. This bottleneck, Fashola said, underscores the urgent need for collaboration between IPMAN and the government to accelerate the rollout of CNG stations nationwide.
In October 2024, the Nigerian Midstream and Downstream Petroleum Regulatory Authority reported that only 50 CNG stations were operational for a population of over 200 million, further illustrating the gap between policy and implementation.
The Tinubu administration’s CNG initiative aims to position the fuel as an affordable and environmentally friendly alternative to petrol. Agreements have been signed with private organisations to develop CNG infrastructure, but progress has been slow.
Fashola emphasized that a government-backed funding scheme or grant is essential to resolve these challenges and fast-track the adoption of CNG across the country. “So, the government needs to look at the side of IPMAN, we are the best partner and we already presented ourselves to the Federal Government. So it’s just for them to sit with us, then harmonise things and work out how things will be done properly,” he concluded.