News

March 2, 2026

CNG station at OAU to cut transport costs, boost clean mobility – MDGIF

By Obas Esiedesa

The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has commissioned a Compressed Natural Gas (CNG) refuelling station at Obafemi Awolowo University, Ile-Ife, in a move expected to lower transport costs, provide cleaner mobility and expand access to affordable energy for students, staff and surrounding communities.

The facility, developed in partnership with FEMADEC Energy Limited, is designed to drive the adoption of gas-powered transportation by providing refuelling services, vehicle conversion support and dedicated CNG-powered buses within and around the campus.

Speaking at the commissioning, the Executive Director of MDGIF, Mr. Oluwole Adama, said the project aligns with Nigeria’s gas-based energy transition and is aimed at delivering direct economic and environmental benefits to the public.

According to him, wider use of CNG will significantly reduce the cost of transportation, ease the financial burden on commuters and provide a more stable alternative to petrol and diesel, whose prices have remained volatile.

He said: “This project represents more than the commissioning of a refuelling station. It symbolises progress, partnership and purpose in advancing Nigeria’s energy transition, promoting cleaner fuels and deepening domestic gas utilisation in line with national energy objectives.

“As you may be aware, MDGIF was established to catalyse investments in midstream and downstream gas infrastructure across the country through equity partnerships with private investors.

“Our mandate is clear: to support projects that unlock gas value chains, improve gas access, enhance environmental sustainability, and deliver tangible socio-economic benefits to Nigerians”.

He added that the OAU project is part of a broader initiative to support 20 CNG refuelling infrastructure projects across federal universities nationwide.

The Vice-Chancellor of Obafemi Awolowo University, Prof. Adebayo Simeon Bamire, said the facility will not only improve mobility on campus but also benefit residents of neighbouring communities through cheaper and cleaner transportation options.

Bamire noted that the project would also create opportunities for research, innovation and hands-on training in alternative fuel technologies, while strengthening collaboration between the university and its host community.

The Group Managing Director of FEMADEC Group, Engr. Akinnola Fola, reaffirmed the company’s commitment to deploying safe and scalable CNG infrastructure across the country through public-private partnerships.

The OAU CNG initiative is expected to reduce vehicle emissions and air pollution, improve energy efficiency and support Nigeria’s climate goals, while making daily commuting more affordable for thousands of users.

To further support clean mobility, the First Lady, Senator Oluremi Tinubu, donated 50 CNG-powered buses to the institution, while the Presidential Initiative on Compressed Natural Gas (PiCNG) provided 10 CNG-powered tricycles to enhance low-cost transportation for students and staff.

With lower fuel costs, reduced environmental impact and improved transport availability, stakeholders said the project represents a practical step toward making cleaner and more affordable energy accessible to ordinary Nigerians.