Import Bottlenecks Threaten National CNG Roll‑out, Operators Cry Out

Lagos — Stakeholders in Nigeria’s Compressed Natural Gas (CNG) sector have raised alarm over persistent import bottlenecks for high‑pressure CNG compressor skids, warning that equipment supply constraints are slowing the national expansion drive under the Presidential CNG Initiative (Pi‑CNG‑EV).

Although the Federal Government has rolled out tax‑waiver policies for CNG‑related hardware to lower entry barriers for station developers, operators told The Punch that sourcing core compression machinery remains the biggest pain point for new CNG mother stations and daughter booster stations across the country.

Almost all high‑pressure CNG compressors used in Nigerian refuelling stations are fully imported. There is currently no domestic manufacturer capable of building complete compressor skids that meet NMDPRA and SON (Standards Organisation of Nigeria) safety specifications. Major suppliers are spread across Asia, Europe and India, with typical lead‑times ranging from 16 to 24 weeks from order confirmation to delivery at Nigerian ports.

“The compressor is the heart of every CNG station. Without it, you have storage tanks and dispensers that cannot do anything,” said Tunde Ogunleye, chairman of Independent Gas Station Operators Association of Nigeria (IGSOAN), in an exclusive interview. “Many private investors are ready to break ground for new CNG sites. But they hold back their final investment decision because of long delivery cycles, foreign‑exchange volatility and port clearance delays. Even after the vessel arrives at Lagos ports, SONCAP conformity inspection for pressure equipment can add another three to six weeks before the compressor skid can be released for site transportation.”

Foreign exchange scarcity further complicates procurement. Most overseas compressor manufacturers demand irrevocable letters of credit denominated in US dollars. Nigerian local operators struggle to obtain sufficient forex from official windows, forcing some buyers to resort to parallel market rates which substantially inflate total equipment costs. Some operators disclosed to this newspaper that the landed cost of one standard CNG mother‑station compressor skid has risen by nearly 28 percent within 12‑month period mainly due to currency pressure.

The federal government introduced import duty and VAT exemption for CNG infrastructure hardware in mid‑2025. However, industry players observed that the fiscal relief only cuts customs tariff, and does nothing to resolve forex shortages, long manufacturing lead‑times and SONCAP certification overheads for compressors and pressure components.

Maintenance spare‑parts supply presents a second‑tier supply‑chain headache. Once a compressor skid is commissioned on‑site, critical wearing parts such as valve assemblies, piston rings, sealing kits and filter cartridges are also largely imported. Local service firms can perform routine overhaul work, but most key spares must be ordered from original equipment manufacturers overseas. Extended waiting periods for spare parts sometimes force fully‑built CNG stations into temporary shutdown when compressors break down.

Pi‑CNG‑EV programme officials acknowledged these supply‑chain challenges in a written response to The Punch. The government is exploring two‑pronged strategy to mitigate the compressor import dependency: speeding‑up talks with foreign OEMs for local assembly partnerships and advancing the Ajaokuta CNG industrial park project, aimed at gradually building domestic capability for gas infrastructure hardware production.

“We recognise that import reliance on core compression equipment is a major constraint to our nationwide roll‑out,” a senior Pi‑CNG‑EV official stated. “We are negotiating technology transfer agreements with several international compressor manufacturers to set‑up knock‑down assembly lines in Nigeria. It will not deliver fully‑made‑in‑Nigeria compressors overnight, but local assembly will shorten lead‑times, reduce shipping cost and create skilled local jobs.”

Operators remain cautious about how quickly local assembly can become operational. They pointed out that even knock‑down assembly still requires most core components to be shipped from overseas for the initial years. Until local component manufacturing matures, import risks will not be completely eliminated.

Industry analysts warn that if compressor supply‑chain issues linger, the federal government’s target of 1000 operational CNG refuelling stations nationwide by 2027 will be difficult to accomplish. Short‑term proposals from gas operators include streamlining SONCAP pre‑shipment inspection workflows for repeat orders of certified CNG compressors and creating dedicated forex allocation windows for qualified Pi‑CNG‑EV station developers.

Meanwhile, NNPC Limited continues to work with selected international EPC contractors to secure multi‑year framework supply agreements for compressor skids for its own network of state‑backed CNG stations, in an attempt to insulate its projects from spot‑market supply volatility.