FG expands CNG network with five new stations in Lagos

The Federal Government has intensified efforts to deepen the adoption of Compressed Natural Gas (CNG) in Nigeria by commissioning five additional daughter and last-mile retail stations in Lagos State.

The move aims to expand refuelling network and reduce transportation costs.

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

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who inaugurated the stations, yesterday, said the projects would bring the benefits of Nigeria’s gas resources closer to consumers while providing motorists and commercial transport operators with alternative fuel.

He said the stations would expand CNG infrastructure nationwide, following President Bola Tinubu’s directive for an additional 500 refuelling stations towards a planned national network of 1,000 outlets.

“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.

According to the minister, each of the five stations has a CNG compression capacity of 24,000 standard cubic metres per day and storage capacity of 9,800 standard cubic metres.

He, however, said that the impact of the projects should be assessed beyond the number of facilities commissioned, stressing that their ability to reduce transportation costs and ease the financial burden on businesses and households would determine their success.

Also speaking, the Chief Executive Officer of Ibile Oil and Gas Corporation, Tayo Gbajumo, said the company had a mandate to deliver 15 CNG stations across Lagos State.

He said the five newly commissioned facilities brought the number of operational stations under the programme to nine, following the earlier inauguration of stations in Ikota, Agege, Ogudu and Ojota.

Gbajumo said the remaining six stations were at different stages of completion and would be commissioned by the first quarter of 2027.

He said the initiative was designed to expand access to affordable energy, lower transportation costs for businesses and households and encourage the adoption of CNG-powered vehicles.

The Executive Director of MDGIF, Oluwole Adama, said the five stations had a combined gas storage capacity of 45,640 standard cubic metres and could serve about 8,400 vehicles daily at full capacity.

He said the facilities would provide cleaner and more affordable fuel to transport operators, businesses and commuters across Lagos, while creating employment opportunities in operations, safety, maintenance, logistics and technical services.

Adama, however, identified reliable gas supply, proper maintenance and strict adherence to safety standards as critical to sustaining the facilities.