Nigeria woos investors for CNG, EV transition, targets cleaner transport

Nigeria woos investors for CNG, EV transition, targets cleaner transport

Damilola Aina, Antalya

Nigeria is seeking increased private sector investment and international climate finance to accelerate the adoption of compressed natural gas and electric vehicles, as the Federal Government moves to balance energy security, affordable transportation and emissions reduction.

The Presidential Initiative on Compressed Natural Gas and Electric Vehicles and the Nigerian Midstream and Downstream Petroleum Regulatory Authority made the call at a side event on mobilising green finance for low-carbon transport under Nigeria’s Nationally Determined Contributions at the ongoing COP31 in Antalya, Türkiye, on Wednesday.

The discussion examined how Nigeria can attract investment into CNG and electric mobility infrastructure, develop local manufacturing capacity and make cleaner transportation commercially viable.

Speaking at the event, the Chief Investment Officer of the Pi-CNG and EV initiative, Babajide Awolowo, said Nigeria’s clean mobility transition had moved beyond climate ambition and was increasingly becoming an investment opportunity.

He said the initiative had recorded significant progress in its two-year implementation, including the conversion of more than 140,000 vehicles to CNG, the development of over 100 CNG retail stations and 17 mother stations across the country.

Awolowo added that the initiative had deployed more than 550 CNG buses and attracted approximately $2.6bn in investments from both government and private sector participants.

He said state-level partnerships were also expanding adoption, citing the deployment of 2,000 CNG trucks in Lagos, 100 buses in Enugu, 200 in Nasarawa, and 50 each in Delta and Edo states.

According to him, major private sector operators, including Dangote, Lafarge and the Nigerian National Petroleum Company Limited, are also transitioning parts of their transport operations to CNG, involving more than 10,000 trucks and vehicles.

On electric mobility, Awolowo disclosed that 12 EV charging stations were being developed across major cities, while 40 electric buses had been deployed. He said the initiative was also pursuing a battery-swapping programme targeting 800 electric tricycles in selected northern states.

He added that 37 electric buses had been deployed in the Federal Capital Territory, with plans to increase the number to 100 before the end of the year.

However, he said Nigeria needed more investment in electric vehicle assembly, battery-swapping networks, charging infrastructure, public transportation and renewable-powered mobility solutions to deepen the transition and create employment.

Representing the Authority Chief Executive of the NMDPRA, the Director of Environment Management and Host Community Ann Omezi, in her keynote address said Nigeria’s energy transition must be shaped by its economic realities rather than imported climate solutions.

She said, “For millions of Nigerians, the energy transition is not an abstract discussion about renewable energy technologies or emission targets. It is about the daily cost of commuting to work, taking children to school, transporting goods to markets, and keeping businesses operational without being overwhelmed by rising energy costs. Ultimately, it is about the affordability and accessibility of energy.”

She added, “Nigeria’s energy transition must reflect our national circumstances. We must simultaneously strengthen energy security, expand economic opportunities, and reduce emissions.”

Omezi said natural gas, particularly CNG, could play an important transitional role alongside electric vehicles and other energy-efficient transportation options.

She cited the NMDPRA’s September 2026 monthly fact sheet, which showed that Nigeria recorded average domestic petroleum consumption of approximately 44.4 million litres daily, highlighting the country’s dependence on conventional transport fuels and the opportunity to expand domestic gas utilisation.

However, she cautioned against presenting CNG as an entirely emissions-free solution.

“While we recognise the role of CNG in cleaner mobility, it is important to acknowledge that it is not a zero-emission solution. Its climate benefits must be demonstrated against the fuels it replaces, taking into account methane leakage, operational efficiency and emissions across the value chain,” she said.

The regulator, she added, was strengthening licensing, digital permitting, emissions monitoring and safety oversight to provide investors with a predictable operating environment.

Omezi stressed that climate finance must support projects with demonstrable environmental and economic benefits, warning that not every gas investment automatically qualified as green finance.

She urged development finance institutions to explore blended finance, guarantees, concessional lending and equipment leasing to address high initial investment costs.

Also speaking during a panel session, the Head of Electric Vehicles at the presidential initiative, Gboye Odutola, said attracting international climate finance remained difficult because investors were more interested in large-scale projects capable of demonstrating commercial returns and managing foreign exchange risks.

He explained that operators earned revenue in naira while many international climate funds provided financing in dollars, creating currency risks for investors.

He said the initiative was therefore bringing together commercial buses, government fleets, two-wheelers and three-wheelers to create larger investment opportunities.

Odutola disclosed that N15bn from three green bonds issued in the previous year had been earmarked for the initiative’s programmes, with a significant portion directed towards electric mobility infrastructure.

He said more work was required to establish emissions baselines, improve project visibility and structure investment-ready proposals that could attract international funding.

Similarly, the Head of the Climate Finance Desk at the Development Bank of Nigeria, Omosede Imohe, said international climate funds were increasingly interested in large, coordinated programmes rather than isolated projects.

She disclosed that the bank was advancing a $275m programme to mobilise financing from the Green Climate Fund, adding that mobility had been included despite the difficulty of making a case for the sector.

Imohe said, “The first thing that I think was mentioned is scale. So, when DBN became a direct access entity, there was a flurry of applications from different sectors, from government and the private sector. But, unfortunately, we couldn’t take each of these projects because everybody was thinking about themselves.

“We don’t want an EV project in the store, and then we want renewable energy. It has to be a coherent programme.”

She explained that the bank was working towards aggregating smaller projects into programmes capable of attracting international climate finance, particularly for businesses that might not independently meet the funding requirements of global institutions.

The Pi-CNG/EV Executive Chairman, Ismaeel Ahmed said the investment potential was significant, given Nigeria’s population and dependence on road transportation.

He said, “Nigeria is a big market with 220 million people. Everybody moves on land and very few move by air. Less than two per cent move by air. So bringing your money there is guaranteed return on investment. Most vehicles on the road are for commercial purposes.”

The PUNCH reports that the Federal Government has consequently positioned compressed natural gas as a transitional fuel that can reduce dependence on petrol and diesel, particularly for commercial vehicles, while electric mobility offers a longer-term opportunity to cut emissions and reduce exposure to imported petroleum products.

However, the success of both alternatives depends on the availability of refuelling and charging infrastructure, reliable electricity, affordable vehicles, financing and a functional domestic supply chain.

Nigeria is also under pressure to translate its climate commitments into practical investments. Under its Nationally Determined Contributions, the country has committed to reducing greenhouse gas emissions, making transportation an important sector for intervention because of its dependence on fossil fuels.

The transition, however, presents a financing challenge. Electric buses, charging stations, battery systems and vehicle conversion facilities require substantial upfront capital, while foreign exchange exposure, high borrowing costs and the purchasing power of transport operators could discourage private investment.

This makes the mobilisation of climate finance particularly important. Nigeria’s ability to aggregate projects, provide credible emissions data and establish predictable regulations will determine whether its clean mobility ambitions can attract the long-term capital needed to expand infrastructure and create local manufacturing opportunities.