Nigerian Automaker, Innoson launches plan for new CNG assembly plant

Nigeria’s push toward cleaner and cheaper transportation is gaining momentum as Innoson Vehicle Manufacturing (IVM) Limited announces plans to establish a Compressed Natural Gas (CNG) assembly plant in Bayelsa State.

The move signals both a major expansion for Nigeria’s indigenous automaker and a strategic boost for the country’s ongoing shift from petrol-powered mobility to natural gas alternatives.

During a visit to Governor Douye Diri in Yenagoa, IVM founder and CEO Innocent Chukwuma disclosed that the planned facility will not only assemble CNG-powered buses, ambulances, and vehicles but also provide large-scale employment and technical training opportunities.

“This investment will strengthen Bayelsa’s industrial base and create thousands of direct and indirect jobs in assembly, maintenance, logistics, and local manufacturing,” Chukwuma said. The project is expected to generate over 1,000 jobs and contribute to Nigeria’s renewable energy ambitions ahead of its 2030 target.

Nigeria’s shift toward Compressed Natural Gas (CNG) as a cleaner and cheaper transportation alternative is accelerating through a mix of government-led initiatives and private investments.

The Presidential CNG Initiative (Pi-CNG) has taken the lead, rolling out refuelling and conversion infrastructure nationwide, including new CNG stations in Abuja, Lagos, and Enugu.

If realized, this would position Africa’s most populous nation to tap into the rapidly expanding global clean mobility industry, valued at $384.65 billion in 2022 and projected to reach $1.58 trillion by 2030.”

The Nigerian National Petroleum Company (NNPC) Limited, in partnership with NIPCO Gas, has already commissioned 12 stations and plans to develop 100 more, alongside three liquefied natural gas (LNG) sites, to strengthen energy diversification.

Complementing these national efforts are several strategic collaborations aimed at localising technology and production.

The National Agency for Science and Engineering Infrastructure (NASENI) recently partnered with Adeayworld Energy to manufacture and distribute CNG kits domestically, while SMEDAN and Rolling Energy launched an initiative to convert over 100,000 vehicles and train SMEs in CNG maintenance.

Private investments have also intensified, with the inauguration of a 5.2 million standard cubic feet per day CNG plant in Lagos, currently the largest in Nigeria, and new industrial developments like the Anoh CNG Park in Imo State, which benefits from direct access to the Assa North-Ohaji gas reserves.

Together, these projects reflect Nigeria’s growing commitment to energy transition and economic resilience.

As rising petrol costs and environmental concerns reshape the automotive landscape, CNG is emerging not only as a practical fuel alternative but as a cornerstone of Nigeria’s broader green industrial revolution.