Atlas Core secures 20-year deal with Nigerian state to expand CNG infrastructure

Atlas Core Energy & Logistics has locked in a two-decade public-private partnership with Nigeria’s Oyo State Government to build compressed natural gas refueling infrastructure and convert public transport fleets, marking one of the most ambitious clean mobility agreements in West Africa’s most populous nation.

The Lagos-based energy firm will construct and operate a CNG station at the Pacesetter Transport Service depot in Ibadan under a memorandum of understanding signed with state authorities. The facility will initially service Pacesetter’s existing 50 CNG-powered buses while enabling broader fleet conversion across Oyo State, Nigeria’s fifth-largest by population.

The arrangement positions Atlas Core as a key private-sector enabler of President Bola Tinubu’s CNG initiative, launched last year to reduce Nigeria’s dependence on gasoline imports and lower transportation costs amid persistent fuel subsidy removal impacts. Compressed natural gas typically costs 40 percent to 60 percent less than petrol at the pump in Nigeria, where domestic gas reserves exceed 200 trillion cubic feet.

“We’re building infrastructure that makes cleaner, more affordable transport possible while reducing per-kilometre operating costs for buses and logistics operators,” said Owoade Emmanuel, Atlas Core’s chief executive officer, in a statement. The company declined to disclose the partnership’s financial terms.

Seyi Makinde, Oyo State governor ‘s administration, has positioned the CNG expansion as central to cost efficiency and sustainability goals. Dikko Salami, chairman of Pacesetter Transport Service, described the buses and refuelling station as symbols of “a cleaner, smarter, and more dependable future” for the southwestern state of eight million people.

Nigeria’s federal government aims to convert one million vehicles to CNG by 2027 as part of broader commitments to achieve net-zero greenhouse gas emissions by 2060. The country currently contributes less than 1% of global emissions but faces mounting pressure to transition away from fossil fuel dependency that has defined its economy for decades.

Atlas Core’s Oyo partnership follows similar state-level initiatives in Lagos and Kano, where private firms are deploying CNG infrastructure amid growing acceptance of gas-based mobility solutions. Industry observers note that sustained progress depends on maintaining competitive CNG pricing, expanding station networks beyond state capitals, and ensuring reliable gas supply chains.

The 20-year agreement grants Atlas Core operational rights while obligating the company to support ongoing fleet expansion and maintain service standards. Pacesetter Transport Service has signaled plans to grow its CNG bus fleet beyond current levels, though specific targets remain undisclosed.