FG Commissions 5 CNG Stations In Lagos To Cut Transport Costs

The federal government has commissioned five Compressed Natural Gas (CNG) daughter and last-mile retail stations in Lagos State as part of efforts to expand access to cheaper alternative fuel and reduce transportation costs.

The facilities, developed by the Ibile Oil and Gas Corporation (IOGC) with support from the Midstream and Downstream Gas Infrastructure Fund (MDGIF), were commissioned on Wednesday by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo.

Speaking at the commissioning, Ekpo said Lagos occupied a special place in the public-service journey of President Bola Ahmed Tinubu, noting that his administration was extending the development philosophy pursued during his tenure as governor to the national level.

He said Lagos had demonstrated the importance of long-term planning, institution building, infrastructure development and the mobilisation of private capital for economic growth.

According to him, the federal government is applying similar determination through the Renewed Hope Agenda to ensure that Nigeria’s abundant gas resources support industrial growth, businesses, transportation and job creation while reducing the cost pressures faced by citizens.

“Through the Renewed Hope Agenda, the President has made it clear that Nigeria’s abundant gas resources must work for Nigerians. They must power our industries, support businesses, improve transportation, create employment and, ultimately, reduce the cost pressures faced by ordinary citizens,” he said.

The five stations are located in Idimu and Abule Egba in Alimosho Local Government Area; Ogolonto in Ikorodu West Local Government Area; Ajah in Eti-Osa Local Government Area; and Oko-Oba in Agege Local Government Area.

Each facility has a CNG compression capacity of 24,000 standard cubic metres per day and a storage capacity of 9,800 standard cubic metres.

The stations are designed as last-mile retail outlets to bring CNG closer to consumers in their residential and business locations.

Ekpo said the facilities would improve access to alternative fuel for motorists and commercial transport operators, while supporting the government’s objective of expanding cleaner energy infrastructure nationwide.

“These stations represent access. They represent affordability. And they represent the determination of government to take the benefits of Nigeria’s gas resources directly to the people,” he said.

He disclosed that President Tinubu had directed the expansion of CNG infrastructure across the country, including the development of an additional 500 refuelling stations towards a planned national network of 1,000 stations.

He said the initiative was aimed at ensuring that the benefits of the country’s gas resources translated into lower transportation costs for Nigerians.

According to the minister, expanding CNG infrastructure in Lagos would provide motorists and commercial transport operators with viable alternative fuel options, while bringing cleaner energy closer to consumers.

“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 said.

Ekpo said the Ministry of Petroleum Resources (Gas), in collaboration with the Presidential CNG Initiative, MDGIF, state governments, investors and other industry stakeholders, was working to expand refuelling and associated infrastructure to improve access to cleaner and cheaper fuel.

He commended IOGC and the Lagos State Government for embracing the initiative, describing the project as an example of the federal government, state governments and private sector working together to develop critical infrastructure.

The minister also praised MDGIF for its catalytic role in supporting gas infrastructure development, assuring investors of the government’s commitment to providing an enabling environment for investments to translate into physical projects and economic benefits for Nigerians.