CNG Emerges as Africa’s Strategic Transport Solution

ABUJA, Nigeria, Sept. 29, 2025 — For the global automobile companies, African countries have traditionally been a major export hub, a market dominated by Chinese automakers.

Either Completely Knocked-Down (CKD) or fully assembled automobile units making their way into African markets have seen competition brewing.

Although Africa is a price-sensitive market, prospective vehicle buyers in certain nations shell out more for feature-loaded models.

A watershed moment in Africa’s automobile industry has been led by the increasing popularity of Compressed Natural Gas, or CNG, as an alternative fuel.

While nations such as Tanzania have been bullish on the use of gas-run vehicles, adoption of CNG in Africa’s transportation has become a mass movement.

Both private vehicles as well as public transport are experiencing a speedy induction of CNG-run vehicles.

Many Asian automobile makers have their production facilities in Africa and even local companies in Tanzania and Nigeria. The export volumes from Africa are quite sizeable, mostly based on robust research and development done in the continent’s automobile sector.

In the rest of this article, we will get a sneak peek into both Africa’s government as well as private sector entities embracing CNG-run vehicles.

Private and Government Sectors Back CNG Autos

Innovation in Gas-Powered Vehicles: Nigerian-based logistics startup Renda Africa is quite upbeat that CNG will be economical and a more feasible path to cleaner transport in Africa than electric vehicles in the near term.

With the help of its embedded finance platform, SCALE by Renda, the company plans to convert more than one million vehicles across Nigeria, Ghana, and Kenya to run on CNG by 2027.

“By removing upfront cost barriers and enabling real-time service tracking, we help drivers and fleet owners transition more affordably to alternative fuels, without becoming a converter ourselves,” co-founder and CEO Ope Onaboye told TechCabal.

Mass Transport Fuel Strategy: A country dotted with production plants of gasoline-run or fast-developing electric vehicle (EV) production plants, Nigeria has launched its first fleet of CNG vehicles for the armed forces.

In strife-torn Nigeria, the maiden CNG-run fleet in the armed forces consists of 20 buses, 50 pickup vans, and 14 executive transport units.

The fleet was commissioned at the Mogadishu Cantonment in Abuja as part of the government’s broader clean energy strategy under President Bola Tinubu.

The low tailpipe emissions of CNG, as compared to gasoline, help it deliver fuel efficiency. CNG is being preferred over conventional engines and is compatible for all vehicle classes, from light to heavy-duty. It is produced by compressing natural gas to a fraction of its original volume.

Startup Involvement in CNG: In an endeavor to build a more climate-friendly fleet, Nigerian mobility startup Shuttlers has introduced buses using CNG to its fleet. In the first quarter of 2025, the startup added 20 new CNG-powered vehicles to its fleet, completing 1,484 trips with the buses in three months.

“This move wasn’t just a decision. It was about making a real impact for us, our customers, and the environment,” Damilola Olokesusi, CEO and Co-founder at Shuttlers, said in a LinkedIn post.

With limited on-ground infrastructure and parallels drawn with petrol, Damilola added that the change had resulted in a 29 per cent reduction in cost for riders using the service and a reduction in the CO2 released into the environment.

How to Tackle Misconceptions and Costs in CNG Adoption

A large population in Nigeria is still toying with the concept of CNG-run vehicles. Misconceptions about its safety, efficiency, and reliability persist, proving to be a roadblock for its widespread adoption. Public awareness campaigns, such as the government’s “Switch to CNG” initiative, are important in educating citizens about the economic and environmental advantages of CNG.

Information, communication, and engagement with local communities, while at the same time utilizing local media, can further boost acceptance and spark demand for CNG.

Another hurdle for converting vehicles to run on CNG is the cost factor for many Nigerians. Although government programs like the Credit Access for Light and Mobility, or CALM, Fund provide financial assistance, easy availability of affordable financing is the key. A strong synergy with financial institutions and the introduction of low-interest loan schemes can help make CNG adoption more accessible to a larger segment of the population.

Strong collaboration with financial institutions, along with the introduction of low-interest loan schemes, can make CNG adoption more accessible to a broader segment of the population.

Inputs from Saqib malik

Editing by David Ryder