NRC, Pi-CNG sign MoU to power Nigerian Railways with Compressed Natural Gas

Innocent RaphaelMay 31, 2025

1 minute read

The Nigerian Railway Corporation (NRC) and the Presidential Initiative on Compressed Natural Gas (Pi-CNG) have signed a Memorandum of Understanding (MoU) to integrate Compressed Natural Gas (CNG) into railway operations.

Speaking at the signing ceremony at the Mobolaji Johnson Mega Station in Yaba, Lagos, NRC Managing Director Dr. Kayode Opeifa described the deal as a critical leap toward a sustainable future for the transport sector, aligning with President Bola Ahmed Tinubu’s push for cleaner energy since the removal of petrol subsidies.

Dr. Opeifa said the adoption of CNG would significantly reduce the industry’s carbon footprint, curb inflation by cutting transport costs, and boost economic growth. He added that converting NRC’s diesel-powered equipment to CNG would cut maintenance costs by up to 70% and save the corporation as much as N100 million monthly.

The collaboration will cover four key areas: converting locomotives and generators to CNG, training conversion technicians, distributing CNG-powered tricycles and kits nationwide, and deploying CNG buses for last-mile connections to boost intermodal transport.

The Pi-CNG also donated a CNG-powered bus and branded NRC coaches to promote awareness. Dr. Opeifa praised the gesture, noting it would help communicate the benefits of cleaner transport to the public.

Pi-CNG Programme Director Engr. Michael Oluwagbemi revealed that CNG-powered vehicles in Nigeria have more than doubled to over 100,000 since last year. He expressed optimism about hitting the government’s target of one million converted commercial buses by 2026.

Oluwagbemi noted that over $500 million in investments and 25,000 jobs have already been generated through the CNG initiative. He also disclosed plans to establish daughter stations for NRC in Ebute Metta and Abuja and expand national conversion centres from 50,000 to 250,000.

LAMATA Managing Director Engr. Abimbola Akinajo, in her goodwill message, praised President Tinubu’s leadership in removing fuel subsidies and supporting CNG. She pledged LAMATA’s continued partnership with the Pi-CNG to foster environmentally friendly transportation solutions.