Nigerian oil tycoon targets Africa’s largest CNG producer 7 years after $200 million Otedola deal

Nigerian oil tycoon Abdulwasiu Sowami is moving deeper into the country’s natural gas market, seven years after his $200 million acquisition of a controlling stake in Forte Oil from billionaire Femi Otedola. His company, Ardova Plc, is leading a consortium with Diadem Energy to acquire Powergas, one of Africa’s largest CNG producers.

The consortium has agreed to acquire 100 percent of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, according to A.P. Moller Capital. The transaction would give Ardova an entry into compressed natural gas production and distribution while combining Powergas’ gas sourcing relationships, compression infrastructure and industrial customer base with Ardova’s nationwide retail and logistics network.

Gas expansion takes shape

A.P. Moller Capital announced the agreement through its Africa Infrastructure Fund I and Impala Energy Holdings. The Danish investment firm said the transaction would bring together Powergas’ virtual pipeline capabilities and Ardova’s distribution footprint, creating a platform designed to move natural gas to customers outside Nigeria’s conventional pipeline network.

Ardova Executive Chairman Abdulwasiu Sowami said the acquisition would help connect Nigeria’s gas resources with the industrial, power and transportation sectors. He also linked the expansion to the Federal Government’s Presidential Initiative on Compressed Natural Gas and Electric Vehicles and the Decade of Gas programme, which seek to accelerate domestic gas use.

“Powergas has built the compression backbone required to take natural gas beyond the conventional pipeline grid,” Sowami said. “Ardova brings a national distribution network, deep customer relationships and the ability to invest for the long term.” He said the combined platform would target more affordable, lower-emission energy while reducing transportation costs for Nigerians.

Ardova’s immediate plan is to expand compression capacity, introduce CNG across its retail network and connect more industries and vehicle fleets to domestic gas. Managing Director Abiola Babatunde-Ojo said the company plans to establish 100 CNG refueling sites nationwide within 24 months as it builds out the business.

Building a national CNG network

Ardova also plans to increase Powergas’ compression capacity along viable gas-producing corridors. The expansion is intended to create firm offtake for associated and nonassociated gas, support efforts to reduce flaring and encourage investment across the gas value chain, as Nigeria seeks to increase the commercial use of its large natural gas reserves.

Completion of the acquisition is expected around the end of 2026, subject to customary closing conditions, including regulatory and other third-party approvals. Ardova said it intends to extend the platform into the wider West African market over time, giving the deal potential reach beyond Nigeria’s fast-growing domestic CNG market.

Powergas is among Africa’s largest CNG producers and virtual pipeline distributors, supplying natural gas to industrial, commercial and power customers beyond the conventional pipeline grid. Its Ebedei flare gas monetization project captures gas that would otherwise be flared and converts it into energy for commercial and industrial use.

From flare gas to scale

A.P. Moller Capital invested in Powergas Ebedei through Impala in April 2019, marking the first investment by its Africa Infrastructure Fund I. The fund supported the business through development, construction, commissioning and operational scale-up. Powergas Ebedei began operations in 2020, while its Ebedei compression plant was commissioned in 2021.

Powergas has since expanded distribution across Nigeria’s South-East, South-South and South-West regions. Its operations have created 175 direct jobs, alongside additional employment across its supply chain. The company supplies gas to industrial and commercial customers, including businesses that use CNG as an alternative to diesel generators, reducing emissions at production and consumption points.

From Otedola deal to Ardova

Abdulwasiu Sowami’s latest move builds on his transformation of Forte Oil. In 2020, his Prudent Energy and Services acquired a 74.02 percent controlling stake in Forte Oil through special purpose vehicle Ignite Investment and Commercial Limited, following a 2019 purchase agreement with Otedola’s Zenon Petroleum and Gas Limited valued at $200 million.

The company was subsequently rebranded Ardova Plc under Sowami’s ownership. He later expanded the business through the acquisition of Enyo Retail & Supply Limited, a technology-driven fuels retailer founded by Nigerian businessman Tunde Folawiyo in 2017. The transaction added 95 stations to Ardova’s existing network of 450 stations.

The Enyo acquisition helped make Ardova one of Nigeria’s largest indigenous publicly listed downstream energy groups, with 545 stations at the time. Since then, the company has expanded its retail footprint to more than 700 stations across Nigeria’s six geopolitical zones, strengthening the distribution base behind its latest push into CNG.