The Midstream and Downstream Gas Infrastructure Fund has commissioned an integrated Compressed Natural Gas refuelling facility at Obafemi Awolowo University, in what stakeholders described as a strategic step to embed Nigeria’s gas transition agenda within federal universities.

The project, unveiled in Ile-Ife, Osun State, is part of a broader initiative to deploy CNG infrastructure across 20 federal universities nationwide through equity partnerships with private investors.

In a statement issued on Sunday, the Executive Director of MDGIF, Oluwole Adama, described the project as more than a campus transport solution, calling it a “practical demonstration” of Nigeria’s gas-based energy transition.

The statement read, “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 explained that the OAU facility is one of 20 CNG refuelling infrastructure projects being supported across federal universities in partnership with FEMADEC Energy Limited.

“This CNG refuelling infrastructure project at Obafemi Awolowo University is one such strategic investment. Through our equity partnership with FEMADEC Energy Limited, MDGIF is proud to support 20 CNG refuelling infrastructure projects in 20 federal universities across Nigeria,” he added.

Unlike conventional urban CNG rollouts, the OAU project is designed as a hybrid infrastructure combining refuelling, vehicle conversion services, and transport deployment within a controlled academic environment.

The Vice-Chancellor of the university, Prof Adebayo Simeon Bamire, said the initiative would transform the institution into a living laboratory for alternative fuel research and innovation.

“This project is designed to serve both the university and the surrounding community. It will foster research opportunities, practical learning, and innovation in alternative fuels,” Bamire said.

“It will also strengthen relations between the university and the host community, promote sustainable transport, and create shared economic value.”

He noted that beyond transportation, the facility would support engineering, environmental science, and energy policy research within the institution.

The Group Managing Director/Chief Executive Officer of FEMADEC Group, Akinnola Fola, reaffirmed the company’s commitment to building scalable gas infrastructure nationwide.

“Our focus is to deliver safe, efficient, and scalable CNG infrastructure across Nigeria through strong collaboration between the public and private sectors,” Fola said.

“We see universities as critical anchors in the national gas expansion programme because they combine innovation, youth engagement, and community integration.”

The OAU CNG project is expected to reduce transport costs on campus, lower carbon emissions, and provide cleaner mobility alternatives for students and staff.

It will deploy CNG buses and provide vehicle conversion services, enabling petrol-powered vehicles to switch to gas, which stakeholders say is cheaper and more environmentally friendly.

In support of clean transport within the institution, the First Lady of Nigeria, Oluremi Tinubu, donated 50 CNG-powered buses to the university, while PiCNG donated 10 CNG-powered tricycles to enhance affordable mobility.

The intervention is expected to ease transportation challenges on campus while accelerating the adoption of gas-powered transport solutions.

The development comes amid intensified efforts by the Federal Government to expand domestic gas utilisation following the removal of petrol subsidy in 2023.

Nigeria, which holds one of Africa’s largest proven gas reserves, has long struggled with limited domestic gas infrastructure despite being a major exporter of liquefied natural gas.

The establishment of MDGIF was aimed at bridging financing gaps in the midstream and downstream gas segments, particularly in processing, storage and distribution infrastructure.

Embedding CNG facilities within universities may help drive behavioural change among young Nigerians while serving as a scalable model for broader urban deployment.

With rising fuel prices and growing environmental concerns, stakeholders argue that gas-powered mobility offers a transitional pathway toward cleaner energy without the heavy infrastructure demands of full electrification.

As MDGIF expands the initiative to other campuses, observers say the success of the OAU project could determine whether Nigeria’s gas transition moves from policy ambition to everyday reality.