Nigeria’s petrol stations are about to get a major alternative
LAGOS — One hundred compressed natural gas filling stations are planned for Nigeria within two years as an Ardova-led consortium moves to acquire Powergas, combining one of Africa’s largest CNG producers with an established nationwide fuel retail network.
The consortium, which includes Diadem Energy, has agreed to acquire 100% of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited. The transaction is expected to close around the end of 2026, subject to regulatory and other approvals.
Powergas has spent more than a decade building infrastructure capable of compressing natural gas and transporting it by road to industrial and commercial customers beyond Nigeria’s conventional pipeline network. Ardova, meanwhile, already has the filling stations and distribution footprint needed to take CNG directly to motorists and commercial fleets.
That combination is central to the deal. Powergas would provide compression infrastructure, Diadem the virtual-pipeline logistics and Ardova the retail network connecting the gas to end users.
Ardova plans to introduce CNG infrastructure across its existing retail network, targeting 100 refuelling sites within 24 months. This would more than double Nigeria’s current refuelling footprint if the target is achieved. President Bola Tinubu said in September that the country had more than 90 CNG stations and over 400 certified vehicle-conversion centres, with more than 120,000 vehicles already converted.
The expansion comes as Nigeria increasingly turns to its vast natural gas reserves to reduce dependence on petrol and diesel, particularly after fuel-subsidy reforms increased pressure on transport costs.
The consortium also intends to expand compression capacity across gas-producing areas. That could create additional buyers for associated, stranded and flared gas that cannot easily reach customers through conventional pipelines.
Powergas was founded in 2013 and developed a “virtual pipeline” model in which compressed gas can be transported to customers without direct access to the national pipeline system.
Ardova Executive Chairman AbdulWasiu Sowami said Nigeria’s next phase of energy development would be built around gas at greater scale, arguing that Powergas already provides the compression backbone needed to take natural gas beyond the existing pipeline network.
The deal could eventually extend beyond Nigeria. The consortium has identified other West African markets as potential opportunities once the domestic platform is established.
For Nigerian motorists, however, the most immediate significance will be at the filling station. If the acquisition clears regulatory approval and Ardova delivers its planned rollout, CNG could become available at substantially more conventional fuel forecourts instead of remaining concentrated around specialist facilities.
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