Innoson Vehicle Manufacturing (IVM) has announced plans to build a new Compressed Natural Gas (CNG) assembly plant in Bayelsa State, marking a major step in Nigeria’s ongoing transition to cleaner energy. The announcement came on 15th October 2025 during a meeting between IVM’s founder, Innocent Chukwuma, and Bayelsa State Governor, Douye Diri, in Yenagoa.
The new facility will focus on producing CNG-powered buses, ambulances, and utility vehicles—an initiative that supports the Federal Government’s Presidential CNG Initiative (Pi-CNG) aimed at cutting transport costs and reducing emissions. The plant is expected to create around 1,000 direct jobs and thousands more indirectly through supply chains, logistics, and technical training.
While earlier reports linked the new project to Innoson’s headquarters in Nnewi, Anambra State, all recent confirmations place the assembly plant in Bayelsa. The move is seen as a strategic expansion for Nigeria’s leading indigenous automaker, which has been broadening its production network to reach new energy hubs. Bayelsa’s vast natural gas resources and ongoing government incentives made it a suitable choice for the development.
Chukwuma described the project as a crucial milestone for both IVM and the nation’s clean energy ambitions. He highlighted the company’s readiness to support Nigeria’s Decade of Gas initiative by developing CNG-powered vehicles that could cut transportation costs by up to 40% compared to petrol-powered alternatives.
Industry experts note that CNG technology offers dual benefits—economic relief for transport operators and environmental sustainability. By running on natural gas, CNG vehicles emit fewer pollutants and cost significantly less to refuel, making them a viable alternative for both public and private fleet operators. The savings, according to pilot programmes under the Pi-CNG scheme, could translate into cheaper transport fares and lower maintenance costs for drivers.
This new investment follows Innoson’s earlier expansion in 2024 when the company completed a multi-billion naira CNG plant in Nnewi, designed to produce up to 30,000 vehicles annually. The Nnewi facility, which remains operational, currently manufactures and converts buses and trucks for both public and private sector clients, including the Federal Road Safety Commission. The Bayelsa plant will complement this existing operation, extending IVM’s reach into Nigeria’s gas-producing regions.
Governor Douye Diri commended the project as a boost to local employment and industrialisation. He reaffirmed his administration’s commitment to creating a conducive environment for investors and expressed optimism that the CNG plant would stimulate ancillary industries in the state.
However, public opinion remains mixed. While many Nigerians view the announcement as a significant step toward cleaner mobility, some online discussions highlight concerns about infrastructure readiness. Limited CNG refuelling stations, high conversion costs, and logistical delays have slowed adoption across several regions. Observers say that unless refuelling networks and technical support improve, the benefits of CNG vehicles may not be fully realised in the short term.
Nonetheless, the initiative reflects growing private sector alignment with national energy goals. Innoson’s latest venture aligns with government-led projects, including the Nigerian Gas Vehicle Monitoring System launched earlier this year to ensure safety and compliance within the CNG ecosystem. With Nigeria’s CNG market estimated at over $10 billion and expanding rapidly, IVM’s Bayelsa plant positions the company at the forefront of the country’s automotive transformation.
As preparations for construction begin, expectations are high that the Bayelsa facility will not only create jobs but also accelerate the mainstream adoption of affordable, cleaner transport solutions nationwide. For Innoson, it marks another bold step in redefining Nigeria’s automotive landscape from local assembly to sustainable innovation.
