FG unveils five CNG stations in Lagos

The Federal Government has stepped up efforts to expand the use of Compressed Natural Gas in Nigeria with the unveiling of five additional CNG daughter and last-mile retail stations in Lagos State.

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

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who opened the facilities, said the projects would bring the benefits of Nigeria’s gas resources closer to consumers and provide motorists and commercial transport operators with an alternative fuel.

He said the stations were part of the Federal Government’s drive to expand CNG infrastructure nationwide and reduce transportation costs.

According to him, President Bola Tinubu had directed the expansion of CNG infrastructure, including 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.

The minister said the success of the projects should be measured by their impact on transportation costs, businesses and households rather than the number of facilities commissioned.

“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.

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

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

Gbajumo added that the remaining six stations were at different stages of completion and would be inaugurated in the first quarter of 2027.

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

Also speaking, the Executive Director of the MDGIF, Oluwole Adama, stated that 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 maintained that the facilities would provide cleaner and more affordable fuel to transport operators, businesses and commuters across the state.

“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 added that the projects would create employment opportunities in operations, safety, maintenance, logistics and technical services.

Adama, however, stressed the need for reliable gas supply, proper maintenance and strict adherence to safety standards to sustain the facilities.

“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.