FG, Ibile Commission Five CNG Stations In Lagos, Target 8,400 Vehicles Daily

The Federal Government has inaugurated five additional Compressed Natural Gas (CNG) refuelling stations in Lagos State, with a combined capacity to serve about 8,400 vehicles daily at full operation.

The facilities, developed through a partnership between the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and IBILE Oil & Gas Corporation (IOGC), are located in Ajah, Idimu, Abule-Egba, Oko-Oba and Ogolonto.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who inaugurated the stations on Tuesday, described the development as a significant step towards expanding domestic gas utilisation, reducing transportation costs and promoting cleaner energy alternatives.

Ekpo said the projects demonstrated President Bola Tinubu’s commitment to harnessing Nigeria’s abundant natural gas resources to stimulate economic growth and improve the living conditions of citizens.

He noted that the inauguration of the Lagos facilities, coming a day after similar projects were commissioned in Kano, reflected the Federal Government’s determination to translate its gas development policies into tangible infrastructure across the country.

The minister disclosed that domestic gas supply had increased from approximately 1.6 billion cubic feet per day (BCF) when the current administration assumed office to about 2.2 BCF daily.

He attributed the improvement to government policies that had encouraged investments in the gas sector, while calling for stronger collaboration between the public and private sectors to accelerate infrastructure development.

Speaking at the event, the Managing Director of MDGIF, Oluwole Adama, said the five stations had a combined gas-holding capacity of 45,640 standard cubic metres and could dispense enough gas to fuel approximately 8,400 vehicles daily at full capacity.

He explained that the facilities would provide significant relief to commercial transport operators, fleet owners, traders and commuters through reduced fuel expenses, improved business efficiency and access to cleaner energy.

Adama added that the projects would also generate employment opportunities in safety operations, maintenance, logistics and technical services.

He, however, stressed the need for consistent gas supply, regular maintenance, operational efficiency and strict compliance with safety standards to ensure the sustainability of the facilities.

The MDGIF boss disclosed that the Fund had commissioned about 18 facilities within less than two years of final investment decisions, adding that its mandate covered other critical gas infrastructure, including processing plants, pipelines, flare gas capture projects, terminals and storage facilities.

He further revealed that the Fund had signed a $500 million Memorandum of Understanding with the African Export-Import Bank (Afreximbank) to mobilise additional financing for gas infrastructure development.

Earlier, the Managing Director and Chief Executive Officer of IBILE Oil & Gas Corporation, Tayo Gbajumo, said the commissioning represented another milestone in the corporation’s commitment to expanding CNG infrastructure across Lagos.

Gbajumo disclosed that the corporation had been mandated to establish 15 CNG stations across the state.

According to him, four stations had previously been commissioned at Ikota, Agege, Ogudu and Ojota, while the five newly inaugurated facilities represented another phase of the initiative.

He said the remaining six stations were at different stages of completion and were expected to be commissioned by the first quarter of 2027.

Gbajumo noted that the initiative was designed to make alternative fuel more accessible, lower transportation costs for households and businesses, and encourage the adoption of CNG-powered vehicles.

He commended the Federal Government, Lagos State Governor Babajide Sanwo-Olu, MDGIF and other stakeholders for their contributions to the development of the facilities.

The latest commissioning is part of broader efforts to expand Nigeria’s CNG infrastructure, deepen domestic gas consumption and accelerate the transition towards a cleaner and more affordable transportation energy system.