KEY POINTS
- Atlas Core has signed a 20-year PPP with Oyo State to build and operate CNG refuelling infrastructure and support public transport fleet conversion.
- The first CNG station will be located at Pacesetter Transport Service’s Ibadan depot, initially serving 50 CNG buses with plans for future expansion.
- The project supports Nigeria’s national goal of converting one million vehicles to CNG by 2027 and advancing toward net-zero emissions by 2060.
Atlas Core Energy & Logistics has secured a 20-year public-private partnership (PPP) agreement with the Oyo State Government to develop compressed natural gas, CNG, refuelling infrastructure and accelerate the conversion of public transport fleets to gas-powered vehicles.
The deal represents one of the most far-reaching clean mobility initiatives in Nigeria and underscores the growing role of private-sector investment in reshaping the country’s transportation and energy landscape.
Under the memorandum of understanding (MoU) signed with the state, the Lagos-based energy company will build, operate, and maintain a CNG station at the Pacesetter Transport Service depot in Ibadan.
The facility is designed to support the state-owned transport company’s existing fleet of 50 CNG-powered buses, while also serving as a hub for the wider conversion of government and commercial vehicles across Oyo State.
Supporting Nigeria’s National CNG Drive
The partnership aligns closely with President Bola Tinubu’s national CNG initiative, launched to reduce Nigeria’s heavy dependence on imported petrol and cushion the impact of fuel subsidy removal on households and businesses. With petrol prices remaining volatile, policymakers have increasingly turned to gas-based mobility as a cheaper and more sustainable alternative.
In Nigeria, CNG is estimated to cost between 40 percent and 60 percent less than petrol at the pump. The country is also richly endowed with natural gas, holding more than 200 trillion cubic feet of proven reserves, positioning it as one of the world’s largest gas resource holders.
Atlas Core’s Chief Executive Officer, Owoade Emmanuel, said the project is aimed at lowering operating costs for transport and logistics operators while enabling cleaner urban mobility.
“We’re building infrastructure that makes cleaner, more affordable transport possible while reducing per-kilometre operating costs for buses and logistics operators,” Emmanuel said, adding that the company is committed to supporting Nigeria’s energy transition.
Atlas Core declined to disclose the financial value of the partnership.
Oyo State Governor Seyi Makinde’s administration has identified CNG adoption as a strategic tool for improving transport efficiency, reducing emissions, and cutting long-term operating costs for public services.
Dikko Salami, Chairman of Pacesetter Transport Service, described the new CNG buses and the Ibadan refuelling station as emblematic of a forward-looking transport system.
