Lagos Gets Five New CNG Stations as FG Targets Cheaper Transport Costs

By Chibuzor Alli

The Federal Government has expanded Nigeria’s Compressed Natural Gas (CNG) infrastructure with five new refuelling stations in Lagos, facilities expected to serve about 8,400 vehicles daily and provide motorists with a cheaper alternative to conventional fuels.

The new stations, located in Idimu, Ogolonto, Abule Egba, Ajah and Oko-Oba, were developed by the Lagos State-owned Ibile Oil and Gas Corporation in partnership with the Midstream and Downstream Gas Infrastructure Fund (MDGIF).

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, inaugurated the facilities, describing the expansion as a significant step towards bringing Nigeria’s gas resources closer to consumers and easing the cost of transportation.

With Lagos being one of the country’s busiest commercial and transportation centres, the government believes wider access to CNG could help reduce operating expenses for transport businesses while providing commuters with some relief from rising mobility costs.

“For a dynamic economy such as Lagos, the implications are significant. Every additional CNG station expands the ecosystem required to give motorists and commercial transport operators a viable alternative fuel. It brings cleaner gas closer to the point of consumption and supports our broader objective of making CNG increasingly accessible across Nigeria,” Ekpo said.

The minister disclosed that each of the five facilities has a compression capacity of 24,000 standard cubic metres of gas daily and a storage capacity of 9,800 standard cubic metres.

He explained that the expansion aligns with President Bola Tinubu’s directive to increase CNG infrastructure across the country, including the provision of an additional 500 refuelling stations as part of a broader target of 1,000 outlets nationwide.

However, Ekpo insisted that the government’s achievement should not be judged merely by the number of commissioned facilities but by the actual economic benefits Nigerians experience.

“Our objective is therefore not simply to count the number of stations commissioned. Success must ultimately be measured by impact: whether the infrastructure helps reduce operating costs for transporters and businesses, whether those savings reach commuters, and whether Nigerian families begin to feel tangible relief,” he added.

Lagos CNG network expands to nine operational stations

The latest inauguration brings the number of operational CNG stations under Ibile Oil and Gas Corporation’s programme to nine, following the earlier commissioning of facilities in Ikota, Agege, Ogudu and Ojota.

The company’s Chief Executive Officer, Tayo Gbajumo, disclosed that Ibile Oil and Gas Corporation is working towards delivering 15 CNG stations across Lagos State.

According to him, the remaining six facilities are at different stages of completion and are expected to be inaugurated in the first quarter of 2027.

Gbajumo said the programme was designed to widen access to affordable energy, lower transportation expenses for businesses and households, and encourage the adoption of CNG-powered vehicles.

Beyond expanding the number of refuelling points, the new facilities are expected to strengthen the capacity of Lagos’ emerging gas-powered transportation ecosystem.

New facilities can serve 8,400 vehicles daily

The Executive Director of MDGIF, Oluwole Adama, said the five stations have a combined gas storage capacity of 45,640 standard cubic metres and can refuel approximately 8,400 vehicles daily when operating at full capacity.

“Together, the five stations at Abule Egba, Ajah, Oko-Oba, Idimu and Ogolonto can hold 45,640 standard cubic metres of gas. At full capacity, they can fill about 8,400 cars per day, using natural gas produced right here in Nigeria,” Adama said.

He noted that the projects would also generate employment across several areas, including station operations, safety management, maintenance, logistics and technical services.

Adama, however, cautioned that commissioning the facilities was only the first step, stressing that consistent gas supply, regular maintenance and strict safety compliance would determine their long-term success.

“Of course, inauguration is only the beginning. The real achievement will be safe operations, reliable supply, professional maintenance and lasting public confidence. At MDGIF, we want infrastructure that works every day, not infrastructure that looks impressive only on commissioning day,” he submitted.

The expansion comes as the Federal Government continues to position natural gas as a major alternative energy source for transportation, with the wider CNG programme expected to reduce dependence on more expensive conventional fuels and support Nigeria’s domestic gas utilisation drive.