FG opens five CNG stations in Lagos, eyes six more by 2027

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Read History Go to My Account Log Out Enhanced by Google Energy FG opens five CNG stations in Lagos, eyes six more by 2027 The federal government commissioned five compressed natural gas refuelling stations in Lagos, part of a push to move motorists and

Listen to this article Share The federal government commissioned five compressed natural gas refuelling stations in Lagos, part of a push to move motorists and commercial transport operators away from conventional fuels, with six more facilities targeted for completion by the first quarter of 2027.

The stations, in Abule Egba, Ajah, Oko-Oba, Idimu and Ogolonto, were built through a joint venture between IBILE Oil & Gas Corp. and the Midstream and Downstream Gas Infrastructure Fund. They are meant to widen access to alternative fuel and support adoption of CNG-powered vehicles in Africa’s largest city.

Ekperikpe Ekpo, Nigeria’s Minister of State for Petroleum Resources (Gas), said each station can compress 24,000 standard cubic metres of gas a day and store 9,800 standard cubic metres. He described them as last-mile retail outlets designed to put CNG closer to consumers where they live, work and do business.

Ekpo said President Bola Tinubu has directed an expansion of CNG infrastructure across the country, including an additional 500 refuelling stations as part of a planned national network of 1,000. The goal, he said, is to give motorists and commercial operators a more accessible alternative to conventional fuels.

The minister cautioned that the programme would be judged on results rather than the number of stations opened. Success depends on whether the infrastructure lowers operating costs for businesses and cuts transport expenses for commuters, he said.

“Our objective is therefore not simply to count the number of stations commissioned,” Ekpo said. “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.”

Temitayo Gbajumo, managing director of IBILE Oil & Gas, said the corporation has a mandate to establish 15 CNG stations across Lagos. The latest commissioning brings the number delivered to nine, he said, while the remaining six are at various stages of completion. He said they are expected to be commissioned by the first quarter of 2027.

Oluwole Adama, executive director of the Midstream and Downstream Gas Infrastructure Fund, said the five new stations have combined storage capacity of 45,640 standard cubic metres of gas. At full capacity, he said, they could serve about 8,400 vehicles a day.

Adama said the facilities would bring cleaner and more affordable fuel closer to transport operators, businesses and commuters, in a city where transport underpins much of the economy.

“For the commercial driver, this means less time in a queue and more time on the road earning,” Adama said. “For the fleet owner, it means a fuel bill that is easier to plan for.”

He added that the stations could also generate jobs in station operations, safety management, maintenance, logistics and technical services.

Adama also warned that opening the stations is only a first step. Reliable gas supply, safety and proper maintenance will be needed to keep them running, he said.

“The real achievement will be safe operations, reliable supply, professional maintenance and lasting public confidence,” he said.

The fund’s executive director urged transport operators, fleet owners, businesses and public institutions to make use of the facilities. He also called on IBILE Oil & Gas to hold to high standards of safety and operational discipline.

The commissioning forms part of the federal government’s wider effort to deepen domestic gas use and build the infrastructure needed to support CNG in the transport sector. Officials have framed the shift as a way to reduce reliance on conventional fuels and ease costs for households and businesses.

For now, the Lagos rollout is the most concrete test of that strategy. With nine of the 15 planned stations delivered, the remaining six will show whether the corporation can meet its first-quarter 2027 target. The harder test, as both Ekpo and Adama acknowledged, will be whether supply holds, safety standards are kept, and drivers and fleet owners see lower fuel bills.